What is going on with Jeep prices?
- Thread starter Bodo
- Start date
reece146
Automotive Artist
In a bad economy used vehicles are always at the higher end of the scale wrt price.
Add the "trendy cache" that the Unlimited or Jeep in general has and you get these results.
In my mind finding a 2004 Unlimited non-Rubicon and building it up to whatever your desires are makes a better value proposition. In my local market it means the difference between ~$18-$20k and ~$10-$12k. $8k makes for a wonderful palette of choices for building a TJ, especially if this Jeep build was not your first rodeo.
Likewise the JKs... but to be honest I'd only ever consider a 2011 because of the interior "fit for human consumption". Lol @ Sergio. He's a huge wing nut hence he rocks. 2011 means waiting a while yet... and by that time adding a real engine will be a lot cheaper/cost effective as well.
But I'd rather have a TJ... it's true to the GP Universal evolution.
2¢
Add the "trendy cache" that the Unlimited or Jeep in general has and you get these results.
In my mind finding a 2004 Unlimited non-Rubicon and building it up to whatever your desires are makes a better value proposition. In my local market it means the difference between ~$18-$20k and ~$10-$12k. $8k makes for a wonderful palette of choices for building a TJ, especially if this Jeep build was not your first rodeo.
Likewise the JKs... but to be honest I'd only ever consider a 2011 because of the interior "fit for human consumption". Lol @ Sergio. He's a huge wing nut hence he rocks. 2011 means waiting a while yet... and by that time adding a real engine will be a lot cheaper/cost effective as well.
But I'd rather have a TJ... it's true to the GP Universal evolution.
2¢
reece146
Automotive Artist
Also, don't confuse "ask" and "sticker" with "out the door" pricing. Shopping online gives a really skewed perspective on what vehicles cost. Go do some hand shaking and you'll find much better deals. High used vehicle prices usually means really soft prices that can be eroded quite a bit at negotiation time. Do this stuff a few decades and it all becomes a matter of recurring patterns and tactics. 
Chris85xlt
Adventurer
KBB private party values my 09 JKUR more then what i bought it for new back in 09.
Toolman
Explorer
You can't compare KBB to Jeeps because they are a Labour of Love. Money and time go into them that never pays back. So instead of selling my TJ just to get rid of it for $10k, I would rather keep it and sell it for the right price to the right person that understands what transformation it has undergone. 98' TJ KBB is around $9k. However I have receipts totaling over $42k in after market accessories, upgrades and labor (from me and previous owners). KBB is based on a stock vehicle. If someone changes the axles, gears, adds lockers, transfer case and so on it becomes a custom 1 of a kind the the sellers mind. There are plenty of great deals to be had out there and it's usually going to be from the person that either doesn't know what they have or are sick of owning a money pit that won't yield a return on investment, or the guy that never changed the oil.
I look at it as a rental fee on every thing I own. I can't take anything with me when the grim reaper comes calling, so if I spend money on something and come close to breaking even, or lose a little $$ when I'm ready to sell, but get a lifetime of enjoyment and memories to share with people I love, then it's worth every penny spent and lost on it. My TJ is worth what someone is willing to pay for it and it's also worth what I decide to sell it for. I may drop the price $2k-$3k if the right person comes with the right money at the right time. If you are going to low ball me at least patronize the work that has gone into it, don't belittle the rig while looking at it because you'll insult me into kicking you out of my driveway. YES I HAVE DONE IT BEFORE WHEN SELLING SOMETHING. So if you come off with an attitude that what you're looking at it is an over priced POS then maybe you should go buy a brand new vehicle, spend countless hours researching what is the best way to build it is, pay someone to do the work or invest countless thousands of dollars into tools and machinery to safely install the correct upgrades and feel the pride when Super Dad in the stock mini van at the gas station says to you " Dam, thats a sweet Jeep, I bet you can take that thing anywhere ! Have you done the Rubicon in that thing ? " and your reply will be filled with pride when you say "Thanks, yes I've done the Rubicon and have seen parts of this country people never new were here."
Every time I get back from a trip, I amazed of what I just put my TJ through. 75MPH on the highway for 2-3 hours there, climbing rocky mountains, sand washes, climbing over boulders the size of VW Bugs for 5-6 hours and then on the way home again for a 75 MPH for 3 hours of WOW!!!! what an amazing rig. I just punished this thing and it loved every minute of it. Clean it up check the fluids, and it's ready for next journey.
So in closing my sleepless rant, you're not just buying a used car. You're buying the experience of a Jeep, you're buying an elite membership into a club of people that love what their Jeeps can do. You're buying memories for yourself and your family to share for the rest of your lives. So either buy a used jeep that's been built and get out and use it, or buy a new one and sit at home on the weekends and build it. Then you'll know why Jeeps hold there value. Because their owners value their Jeeps.
I look at it as a rental fee on every thing I own. I can't take anything with me when the grim reaper comes calling, so if I spend money on something and come close to breaking even, or lose a little $$ when I'm ready to sell, but get a lifetime of enjoyment and memories to share with people I love, then it's worth every penny spent and lost on it. My TJ is worth what someone is willing to pay for it and it's also worth what I decide to sell it for. I may drop the price $2k-$3k if the right person comes with the right money at the right time. If you are going to low ball me at least patronize the work that has gone into it, don't belittle the rig while looking at it because you'll insult me into kicking you out of my driveway. YES I HAVE DONE IT BEFORE WHEN SELLING SOMETHING. So if you come off with an attitude that what you're looking at it is an over priced POS then maybe you should go buy a brand new vehicle, spend countless hours researching what is the best way to build it is, pay someone to do the work or invest countless thousands of dollars into tools and machinery to safely install the correct upgrades and feel the pride when Super Dad in the stock mini van at the gas station says to you " Dam, thats a sweet Jeep, I bet you can take that thing anywhere ! Have you done the Rubicon in that thing ? " and your reply will be filled with pride when you say "Thanks, yes I've done the Rubicon and have seen parts of this country people never new were here."
Every time I get back from a trip, I amazed of what I just put my TJ through. 75MPH on the highway for 2-3 hours there, climbing rocky mountains, sand washes, climbing over boulders the size of VW Bugs for 5-6 hours and then on the way home again for a 75 MPH for 3 hours of WOW!!!! what an amazing rig. I just punished this thing and it loved every minute of it. Clean it up check the fluids, and it's ready for next journey.
So in closing my sleepless rant, you're not just buying a used car. You're buying the experience of a Jeep, you're buying an elite membership into a club of people that love what their Jeeps can do. You're buying memories for yourself and your family to share for the rest of your lives. So either buy a used jeep that's been built and get out and use it, or buy a new one and sit at home on the weekends and build it. Then you'll know why Jeeps hold there value. Because their owners value their Jeeps.
Other vehicles exhibit the similar high resale, though most are Toyotas. Land Cruiser, Tacoma, 4Runner, LR Defender, Diesel Excursion (maybe), and a few others. Xterras and some others don't have quite as good of resale, but I wouldn't characterize it as bad.
Good four wheel drive vehicles with low range command a certain market value. They have a longer service life / mileage than many inexpensive passenger cars and are infinitely more useful... so the downward curve of resale value is spread over a longer period at a higher price as a result.
Also, when many cars are headed for the scrap yard with a $200 value, a running 4x4 vehicle of any kind here is worth $1000 - $1500 minimum.
Good four wheel drive vehicles with low range command a certain market value. They have a longer service life / mileage than many inexpensive passenger cars and are infinitely more useful... so the downward curve of resale value is spread over a longer period at a higher price as a result.
Also, when many cars are headed for the scrap yard with a $200 value, a running 4x4 vehicle of any kind here is worth $1000 - $1500 minimum.
Yellowkayak
Adventurer
Sure I'll explain.
For one the Jeeps are simple under the hood....alot less than a full size pickup 4X4 or a luxury sedan. There is alot more material in the other two than a Jeep. Plain and simple, becaue its a popular vehicle that can go anywhere, they jack the prices up. Its the Supply and Demand rule. Sure I believe in profit, no business can operate without profit, but it DOES NOT cost that much to build one. The profit margin on the Jeeps is very high (probably not for the dealership, but for Chrysler/Jeep) only because its a popular vehicle. Everything about the Jeeps especially the Wranglers is basic and simple, which translates into low build cost, which means higher profit. To me selling ANYTHING because its popular for much higher prices that what the manufacturer cost is just plain GREED anyway you look at it.
Sure they are great vehicles, I've owned to Wranglers and i miss them ALOT, but buying one these days for what material is in them...not worth it. but then again I am entitled to my opinion as anyone who doesn't agree with it. If your rich and don't think twice about speding money on over priced items...good for you, but you sure make it difficult for of us that cannot. As long as people support greed it will never go away, it will get worse, which means les and less people will be able to afford those items, which means sales will plummet, which means more financial problems for the companies, which translates into more bailouts of tax payer's money.
Reasonable price for a 4X4 Jeep Wrangler Unlimited Rubicon - $15 - 16000. Can Jeep sell them for than? Hell yeah and still make a profit, but of course their stock holders will get all pissy because they aren't making a large amount of greedy profit.
Am I being unrealistic....to rich people who are greedy, and to stock holders who are being greedy...you bet I am...to the common average Joe with set low income who wants a Jeep...heck no!
There....I explained as best as I could even if you don't like my explaination...thats not my problem!
JJ
For one the Jeeps are simple under the hood....alot less than a full size pickup 4X4 or a luxury sedan. There is alot more material in the other two than a Jeep. Plain and simple, becaue its a popular vehicle that can go anywhere, they jack the prices up. Its the Supply and Demand rule. Sure I believe in profit, no business can operate without profit, but it DOES NOT cost that much to build one. The profit margin on the Jeeps is very high (probably not for the dealership, but for Chrysler/Jeep) only because its a popular vehicle. Everything about the Jeeps especially the Wranglers is basic and simple, which translates into low build cost, which means higher profit. To me selling ANYTHING because its popular for much higher prices that what the manufacturer cost is just plain GREED anyway you look at it.
Sure they are great vehicles, I've owned to Wranglers and i miss them ALOT, but buying one these days for what material is in them...not worth it. but then again I am entitled to my opinion as anyone who doesn't agree with it. If your rich and don't think twice about speding money on over priced items...good for you, but you sure make it difficult for of us that cannot. As long as people support greed it will never go away, it will get worse, which means les and less people will be able to afford those items, which means sales will plummet, which means more financial problems for the companies, which translates into more bailouts of tax payer's money.
Reasonable price for a 4X4 Jeep Wrangler Unlimited Rubicon - $15 - 16000. Can Jeep sell them for than? Hell yeah and still make a profit, but of course their stock holders will get all pissy because they aren't making a large amount of greedy profit.
Am I being unrealistic....to rich people who are greedy, and to stock holders who are being greedy...you bet I am...to the common average Joe with set low income who wants a Jeep...heck no!
There....I explained as best as I could even if you don't like my explaination...thats not my problem!
JJ
NOMADIC_LJ
Explorer
So you think Jeep has a right to make a profit but only a certain amount? Jeep can charge whatever they want for their vehicles. You have the option not to buy it if you don't like the price.
If we were talking about food prices I would totally agree with you because food is something you need and can't live without. Same with fuel. You don't need to have a Jeep, you want to have a Jeep.
Demand will dictate if the price is worth the product. Obviously you are in the minority otherwise Jeeps would never sell.
Yellowkayak
Adventurer
I totally agree with everything you said. If Jeeps were lowered to $15 - 16,000, I'll bet more and more people would be buying them but right now at the high prices cannot! Thats all I'm saying.
So if someone was selling a widget at $100, and someone down the road was selling the same widget for $10.....which person do you think would sell the most? And in the long run make more profit than the greedy person trying to sell them at $100 each.
And a BIG YES to its a want thing, not a NEED THING.
JJ
So if someone was selling a widget at $100, and someone down the road was selling the same widget for $10.....which person do you think would sell the most? And in the long run make more profit than the greedy person trying to sell them at $100 each.
And a BIG YES to its a want thing, not a NEED THING.
JJ
BKCowGod
Automotive ADHD is fun!
Probably the $100 widget person. The $10 widget person is spending $9 to make and market it which means they will sell it for a $1 profit, but because their margins are so small they really can't advertise it much so their market share will be very small. The $100 widget person is spending $25 to make and market it, which gives them $75 per widget profit. That means, for every widget he sells, the cheap widget person will have to sell 75.
Widget cost has very little to do with the actual widget's value, but rather with the perceived value based on popular opinion and consumer demand. For an example, see the Gap corporation. They sell what is essentially the same sweater under three different labels. From Old Navy, it's $15. From Gap it's $25, and from Banana Republic it's $75.
jeep-N-montero
Expedition Leader
Apparently you haven't had a look under the hood of the JK or looked at the "plush" plastic interior on them, a far cry from what the simple Wrangler once was.
As for your reasoning for pricing, do you even have a clue what a manufacturer spends on research and development, product testing, and advertising? Go research it and then post your findings, or just sit there with your assumptions and tight wallet in the dark. There is a lot more to a vehicle than simply building it.
Ludedude
Adventurer
$10 widget person of course! They may only be losing $2 per widget but they'll make it up in volume :sombrero:
The whole used car market is like this with anything less than 5 years old.
The economy is slow, cars and trucks have been slow sellers for the last 3-4 years and people are not rushing to trade in their 3-4 year old vehicle like they did 5 years ago.
So, fewer sold new, and those that sold are being held on too. It's all about supply and demand.
You're off by a little bit on your idea of the prices when new. My 2005 LJ would have stickered at close to $27K new and I could sell it for $16K with 43K miles on it. Last month a dealer offered me $15K trade-in on it with just a soft-top.
Exactly. You've had a vehicle for almost 7 years and the dealer is going to sell it for $7k less than what you paid for it new.
Now, i'm assuming that the dealer is going to make a decent return on the $15k he offered you.