High car prices are burdensome for today’s car shoppers. According to iseecars.com, the average transaction amount for a used vehicle has jumped by almost 23 percent over the last year. And Edmunds reports that 82 percent of new car purchases were above the window sticker price. It’s not a pretty picture for buyers. But, it’s the opposite situation for those selling a car. If you’re looking to offload a Wrangler, Gladiator, Grand Cherokee, Cherokee, Compass, or Renegade, it’s only natural to ask, “How much is my Jeep worth?” Even leased vehicles may have an end-of-term value that was once unthinkable.
Let’s check out some examples to show what we mean. We’ll rely on CoPilot’s Hidden Profit Calculator and use a Chicago zip code (60601). A different location and other factors could affect these numbers.
A 2017 Jeep Grand Cherokee in Laredo trim with two-wheel drive had an MSRP (manufacturer’s suggested retail price) of $31,490. In normal (pre-COVID) times, this SUV would be worth $14,512. That’s a depreciation rate of about 54%. But, in today’s market, this same vehicle is worth a remarkable $23,438, or $8,926 more. To put it another way, this Jeep has only dropped 25 percent in value (less than half the normal amount) since it left the dealership.
And the rise in car values can be even more meaningful if you have a leased vehicle approaching the end of the term. Let’s use a 2019 Jeep Compass Limited (with all-wheel drive) as an example. Based on a 39-month lease with a 10,000-mile annual allowance, the car has a 52% residual value (what the vehicle can be purchased for at the end of the lease). Using a $32,130 MSRP, the lessee can buy this Jeep at the term’s end for $16,708.
Ordinarily, buying a leased car often doesn’t make sense because residual values tend to be inflated. But these are no ordinary times. Returning to CoPilot’s calculator, we see that this vehicle (based on 32,000 miles of use) is worth $23,921. Assuming it’s in good condition, there’s $7,213 extra value. Simply, returning the car at the end of the lease means surrendering this amount. Instead, sell the Jeep, and you’ll pocket the difference.
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What Determines A Vehicle’s Value?
Asking “How much is my Jeep worth?” involves many factors to identify your car’s value. It’s a complex formula determined by:
Model Year: It makes sense that the newer a car is, the more value it retains. Older cars have more depreciation, so they’re worth less. Of course, certain classic cars are the exception, but that’s a topic for another time.
Make/Model: The manufacturer (make) and model also go a long way in setting a car’s value. Much of it goes back to the car’s original selling price. For example, the entry-level Jeep Renegade costs significantly less than the Grand Cherokee.
Trim: Trim refers to the different versions of a specific model, and each version has its own level of standard equipment. For example, the top-tier Cherokee Limited is more fully equipped than the base Cherokee X.
Body Style: The type of vehicle also affects value, with some body styles more in demand than others (this is covered below). Examples include SUV/crossover, sedan, coupe, hatchback, pickup, van, convertible, and wagon.
Powertrain: The type of engine and the number of drive wheels (two or four) also affect valuation.
Mileage: The number of miles on a car is a significant determinant of a vehicle’s value. Above-average use can bring down a car’s price.
Condition: Like mileage, the condition also dramatically affects a car’s value. Significant damage or a poor history (like an accident or salvaged title) will cause a car’s worth to nose dive.
Location: A car’s location can also affect how much it’s worth. Certain vehicles are worth more in some parts of the country than others. For instance, a convertible is likely to be more sought after in Southern California than in Minnesota. Also, some regions may be more economically robust, making for a more active car market.
Demand: Certain body types are more called for than others, especially SUVs and pickups. Jeep only makes these types of vehicles, so valuations tend to be greater for this brand.
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How do Jeep Trade-In Values Compare to Other Makes?
With that “How much is my Jeep worth” question still on the mind, it’s helpful to know how this brand compares to others. According to caredge.com, the Jeep brand sits solidly in the middle at #8 out of 18 mainstream brands. On average, Jeeps hold 71.36% of their value over three years.
This compares to Subaru, which is ranked on top with 78.08% retained value. Rounding out the upper ranks are RAM (77.78%) and Mazda (76.41%). The worst brand is Buick at 61.66%. Jeep drops to #12 after five years with 58.79% retained value. With Subaru (65.92%) staying in the lead and FIAT (53.51%) holding up the bottom.
On a model-level review of valuation, the Jeep Wrangler Unlimited comes in first place with a five-year depreciation of only 30%, according to iseecars.com. It’s closely followed by the Jeep Wrangler model at 31.5%.
How Much Is My Jeep Worth? Do The Math.
Using CoPilot’s Hidden Profit Calculator is a convenient way to determine your Jeep’s value. Enter a few bits of information to reveal the bottom line, with no personally identifying information required.
And there are other resources at your disposal. Both KBB (Kelley Blue Book) and TrueCar have online vehicle value estimators. Edmunds has a similar offering, but the vehicle identification number must be entered at the end of the process. Let’s see how the results compare (we’ll skip Edmunds).
This is a valuation estimate for zip code 60601 of a 2018 Jeep Grand Cherokee Overland (with four-wheel drive) in clean (very good) condition, gray color, and with 45,000 miles. There are no outstanding mechanical issues, and there’s no extra equipment beyond what comes with the Overland trim.
CoPilot “Real-time Market Value”: $35,202
KBB “Trade-In Value”: $34,382 (range: $32,834-$35,929)
TrueCar “True Cash Estimate”: $32,025
All these services allow you to convert this estimate into a purchase offer.
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