Not only are Jeeps reliable, but they hold their value really well throughout the years.
How is it that Jeeps can go through so many years with less depreciation? And what makes them so appealing as both offroaders and family cars?
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How Well Do Jeeps Hold Their Value?
Jeeps generally sell for 80% of the new price after 3 years. The Jeep Liberty model tends to depreciate faster than the other models as it will lose around 45% of its value over 3 years.
We are diving into these questions to find out why Jeeps are sought after and what makes them appreciate or depreciate in value.
Let’s compare the different models throughout the years and how much value they retain in percentage points.
Depreciation Numbers For Each Jeep Model
Here’s a chart with resale values for each Jeep model after 3, 5, and 10 years.
|Model||New Price||3 years||5 years||10 years|
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These numbers indicate a lower depreciation rate than the average car.
One thing’s for sure, a Jeep will devour any rough terrain you throw at it. They are known to be the best among 4-wheel drives.
Of the many things drivers dread, depreciation is among the top of the list.
When you drive your new car out of the lot, the clock starts ticking and the car starts depreciating in value. And different cars depreciate in value faster than others. Jeeps seem to against this trend, showing slower depreciation.
For a consumer, it makes much more sense to buy a car that retains its value. The average car owner sells their used at the 5-year mark. A car that’s lost less value around the five-year mark than the average car is a wise choice economically. And this can get you a good deal when it comes to reselling the used car.
For example, on average, a car is expected to lose about 15-25 percent of its value during its first year. That’s a huge hit considering that it’s a brand new car.
Now, compare that to the Jeep Wrangler and the Jeep Wrangler Unlimited. These have been known to enjoy low depreciation values, going as low as 20,3 percent during their 5th year. That’s quite a significantly slow depreciation. This means a Jeep owner who wants to sell their Jeep at the 5-year will get much more for it than a regular owner would from another brand.
Jeeps have been known to lose their value fairly slower than other vehicles.
They are often great for outdoor driving on rough terrain, and often survive under harsh driving conditions.
But if they can survive such a beating, how do they hold up in value throughout the years?
Why Do Jeeps Hold Their Value So Well?
Affectionately known as Willys since the 1940s, Jeeps are known to hold their value for longer periods than their competitors. This is because they are durable and perform great in all sorts of terrain.
The Wrangler, in particular, has been the most iconic Jeep model throughout the years. Not only has this model stood the test of time, but it has also been one of the slowest to lose its value over the years.
Making its way through gruesome war terrain in WWII and coming out solid is one victory the Wrangler has won. It was used in the war as a general-purpose vehicle, and since then, the Wrangler has kept its form as the most durable 4-wheel drive vehicle out there.
The advanced 4-wheel drive system on the Jeep Wrangler allows driving in both normal roads and rough terrain such as when off-roading.
This is why the Wrangler is loved so much.
Not only is it durable, but it can also be used as a style statement. It’s not surprising to see it being driven by a college student and just around the corner, an outdoor enthusiast is driving with the top down.
Other competitors in the same segment are 4-wheel drive capable, but the Wrangler can get through tougher trails than most of them. This makes them an even more appealing option for outdoor enthusiasts and 4×4 drivers.
Jeeps retain their value because of the offroad excellence and quality that goes into making one. There are plenty of other cars that have the off-road capability, but the Wrangler was specifically made with offroading trails in mind.
The Jeep Wrangler can maneuver outdoor trails that other cars simply can’t.
Speaking of other cars, it’s a valid question to ask how well Jeeps hold their value compared to other vehicles in the same category.
There are lots of options out there if one is looking to conquer rough terrain and back yard trails. From huge pickup trucks to offroading SUVs. One can get confused when bombarded with the many options to choose from. To add to that, there’s all-wheel drives, 4-wheel drive, and 2-wheel drive to choose from. This makes the choice even harder to make because you have to know what you will be using the vehicle for.
For offroading, you’ll need an all-rounder that gets you a comfortable ride but performs exceptionally well in off-road trails. So this now begs the question:
Do Jeeps Hold Their Value Better Than Similar Vehicles?
A study done on over 4 million used and new cars to measure value after 5 years revealed that the Jeep Wrangler and the Jeep Wrangler Unlimited depreciate slower than other similar vehicles. The Toyota Tacoma took third place in cars with slow depreciation.
The Jeep Wrangler and the Jeep Wrangler Unlimited occupy the number one and two spots comfortably when it comes to vehicles with the least depreciation in their 5th year. Not only are these two models very tough on the road, but they still last longer than most of their competitors. You’d think a Jeep that’s used to take on hills and rugged terrains wouldn’t be so valuable after a couple of years, but that’s not the case for Wrangler and the Wrangler Unlimited.
The Jeep Wrangler faces fierce competition from stellar brands such as Toyota and Nissan. The list features heavy and reliable pickup trucks such as the Toyota Tacoma and the Nissan Frontier, but the Wrangler still comes out on top.
Pickup trucks are built to withstand abuse and last as long as possible. This is evident in most Toyota pickup trucks.
Here are few things on our article about Jeeps Vs Pickup Trucks
Not only is the Jeep Wrangler as reliable and durable as a pickup truck, but it surpasses most top brands when it comes to off-road driving.
Here is the official list for comparison, together with percentages after the five-year mark.
|Rank||Model||Depreciation after 5-years|
|1||Jeep Wrangler Unlimited||27.3%|
|7||Chevrolet Silverado 1500||39.7%|
|8||GMC Sierra 1500||39.9%|
|10||Ram Ram Pickup 1500||42.7%|
Toyota Pickups are the closest competitors in slow depreciation.
This is a huge accomplished for Jeep because of the process that goes into making pickup trucks. Pickup trucks are made to handle heavy-duty work and still be reliable. So you’d think they’d be the ones on top of the list.
After 5 long years, the average car has lost so much value that selling it is difficult. This is because on average, a new car can lose up to 50 percent of its value in 5 years.
This also depends on what type of car it is. Like mentioned before, pickup trucks are more rugged and durable and so are built to last longer under heavy use. Cars, on the other hand, are geared towards safety and comfort.
Looking at the low percentage at which Jeeps depreciate, one might wonder if they actually appreciate in value as well. This might have you questioning:
Do Jeeps Depreciate Or Appreciate In Value?
According to Kelley Blue Book, a 2015 Jeep Wrangler Sport Unlimited goes for $27,000. A used one in good condition sells for around $23,000. If there are upgrades and you’re selling to a person, you can get close to what you originally paid.
So, on average, used Jeeps are worth almost the same as new ones.
This is also not a surprise because Jeeps are now produced at a lower frequency. This means less supply and more demand for Jeeps.
The community of Jeeps and off-roading enthusiasts also make Jeep one of the most in-demand vehicles on the resale market.
There’s a huge following for Jeep owners and lovers both online and offline.
The Jeep Jamboree is an off-road adventure weekend event for Jeep enthusiasts and their beloved 4x4s.
This event, together with the ever-growing online community centered around all things Jeep shows just how much value there is in owning a Jeep.
More so, this might leads to the conclusion that the Jeep brand is not only about the cars themselves but the lifestyle attached to a Jeep.
The online Jeep community features different forums dedicated to Jeep owners, featuring the latest trends in Jeep modifications and updates. Aftermarket upgrades are huge in the Jeep world. With customizations and upgrades such adding more seats, improving sound-system quality and lifting the Jeep just a little more off the ground.
These improvements all add up and increase the value of the car too. It can also be quite an expensive endeavor because the Jeep themselves aren’t exactly cheap.
With all this admiration and support from so many people, does this indicate that people still keep buying new Jeeps?
Well, yes and no.
Yes, because Jeeps have a constant demand so people are still buying new Jeeps. And no because Jeeps are not very difficult for the average enthusiast to fix, modify and upgrade. So once you have one, it stays with you for a long time.
It’s not uncommon to see used Jeeps priced higher than cars or pickups of the same year.
The fact that Jeeps are sought after and the great aftermarket support on them might be the cause of this.
Upgrading a car is most likely to increase its value. This also leads to a slower depreciation in value because of the added upgrades to the car.
But we’ve ascertained that Jeeps aren’t like any other car out there. Even a used jeep is thought to be more valuable than the average car. One thing that points to this is the pricing of used Jeeps.
You might think it’s a mistake when you see advertised prices of used Jeeps.
Why Are Used Jeeps So Expensive?
In 2018, The Jeep Wrangler earned the ALG residual value award. This award recognizes vehicles that best retain their resale value. On top of that, Jeeps are also appealing because of the off-roading and outdoor lifestyle that comes attached to owning a Jeep.
Jeep Wranglers rarely have much competition when it comes to offroading.
The Wrangler is in a class of its own when you also take into consideration the history of the brand.
This particular model doesn’t change much in terms of design and build quality. This is one trait that has brought even more customers for the brand. They don’t constantly add lots of new features every year like other car manufacturers.
This means Jeep has made the Wrangler an easier choice for consumers.
Customers still feel comfortable buying an older model because a later one doesn’t offer much difference in features.
Of Course, there are competitors to Jeeps, but they struggle to keep up. The Toyota 4Runner and Land Rover offer alternatives, but at what cost?
The problem with the Wranglers competitors is that they don’t fair as well in off-road trails. Sure they are much more comfortable in terms of features, but the durability and off-roading are where Jeeps really shine.
The better care you take of any car, the better resale value the car will have.
Jeeps just depreciate at a steady and lower rate than most other car brands. The fact that they go up against brands such as Toyota that are known to be very reliable, is a dead give-away that there’s something special about Jeeps
Jeep enthusiasts are also a huge support to the brand, hosting events to honor and show off their Jeeps. These events are open for every Jeep owner out there.
Judging from the pictures of the Jamboree event, it’s a nice place to be for a Jeep owner.
Jeeps are here to stay, and their value is bound to increase every year.