Horrible Resale Value... - Page 4 - 2014+ Jeep Cherokee Forums
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post #31 of 55 (permalink) Old 01-20-2017, 10:05 PM
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Originally Posted by cherokee_whisperer View Post
Well, not sure about that. Remember, residual value for a fully loaded 10yr old car might 7500 and a base model is 5000. In purchase price, the spread can be 10k or more. This is a generalization of course, but it's my experience over the past 20yrs buying and selling cars.

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This is true for most vehicles. Of course you need the basics of A/C and such but almost all cars come with power locks and windows and auto transmissions. The bigger engine on a TH might have more people that are interested in buying used so it keeps much of its value but all the tech and stereos rápido deteriorate early in the life of a car.

I bought mine with the V6, cold weather package, which I would gladly eat any and all depreciation on and it came with towing, which I wanted anyway.

We bought my daughter a 10 year old CR-V EX which has everything that was offered on the vehicle in 2005. We gave the lady $1500, even though she had agreed to give it to her mechanic for $1000, as we are in the extended family. I pretty sure a base model CR-V from 2005 would still run at least $1500 as we looked at similar vehicles for at least 2 years. We had no problems making a decent sale on a 2005 Nissan Altima S, which had nothing but the basics. It was just above standard mileage but we detailed it. Had some minor repair on the floorboards that a buyer requested, and sold it for high 3rd party KBB value within days a few years back. My wife's uncle did the floorboards where Salt had eaten away at. For no charge.

So we got $5500 just 2 years before buying a fully loaded CR-V with 4WD for $1500.

This isn't the only example but I would much rather take my chances with a car with less options, except items you want, and could care less if you ever got any extra for them. It's why they sell so many standard package Limited Grand Cherokees, or standard factory package TH and Latitudes.

Companies wouldn't have quick order packages if they were not the gold standard for new and used, when it comes to making easier transactions both new and used.

It's what fleet cars order, whether rental or company cars for business. I worked in Pharmaceuticals as did my father since the early 1960s. You got a decent basic package but could pay for anything additional. PH&H fleet cars all were the same. We custom ordered colors and such and had a limited choice of vehicles but switched out at 70,000 miles. The best part was having the option to buy the car at the end at 70,000 miles for a song, relatively speaking.

I bought my 1992 Ford Taurus in 1993 with 70,000 miles, all highway with new tires, fully maintained and everything in tip top shape for $5800. I sold it to my old college roommate who was in med school for $7200, but it was still a couple thousand below blue book.

PH&H lease hundreds of thousands of cars annually from budget rentals to higher end government agencies. They almost always stick with the basic packages that aren't the cheapest in a vehicles line up but the never deck out the cars with OEM packages unless the contracting companies pay the difference.

I think my dad bought every car in his 30+ year career and sold them to friends and family members.

Here in Western NY friends and family go to the auto auctions and the vast majority of cars to buy are fairly basic models that would compare with a standard equipped Latitude with ADI. They also have the Limited vehicles but they don't sell for much more and dealers usually snap them up before you can.

I still would prefer to buy a non-leased vehicle third party if possible or find a car that was just turned in from a corporate lease after the 3 years was up. If you know what you are looking for you can find a gem for little money.

I could give loads more examples but you get the point. You pay a ton for that new car thing. I wanted my Jeep new after having one that I picked up just turned in at a Ford dealership. The lady who leased it was a real estate agent. She needed something nice and big to drive perspective clients around. Almost all dealers around here change oil for life. The Ford listing didn't even know it had a luxury package on top of the limited package.


Fleet services buy in bulk and pay such a lower amount they take little to no hit and everything is a write off for business taxes. Same goes for construction workers and trucks or vans. It's all a write off and they get deep discounts with the higher volumes of leases.

If you are buying new, you best plan on holding that car the entire length of purchase. If you get to a pint early where you are not upside down that's a bonus. If you want the best equity, do like the above statement said and buy used after a corporate lease. They maintain their vehicles to an acceptable level but they rarely have loaded vehicles. Sell them off in a couple more years and restart.

More and more people are just leasing and releasing. That's what my wife has done after the Altima. Nothing down, forgiveness of any over mileage and they bumped her up from a complete basic to an LX middle vehicle for $20 extra per month. It's basically renting a car.

Once again keeping that faux economy moving and cars coming into and off the lots.

I just don't want to do leasing even though at times if you are okay with a mid-level car with mostly standard type option packages it much cheaper. My wife pays about $330/month on a vehicle with an MSRP similar to what 4 cylinder TH can be bought for. I pay more than $200 more per month and she can break the lease at anytime for a 2-month lease payment.

Again not my style. I like to customize my vehicles and work on them as much as I can with extra goodies. You won't see a thing on trade ins for those things.

We just have to accept this or be okay with mediocrity. I choose not to be.


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post #32 of 55 (permalink) Old 01-20-2017, 10:18 PM
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Originally Posted by SpeedtekTH View Post
I would disagree on that one........more options ALWAYS ensure better resale value (and trade in)
Better resale, yes. But not anywhere close to what you paid for those options.
Percentage wise, the options lose value faster.... way faster. Especially in those first years.
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post #33 of 55 (permalink) Old 01-21-2017, 01:11 AM
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Originally Posted by bruceg View Post
I'm just going off of KBB. I was about to trade it in, but at this point I think I may be better off just paying it off and keeping it since the trade in value is so bad.
KBB and similar are just starting points if you're selling privately. Someone who wants your particular vehicle may pay considerably more. A guy on Corvette Forum recently sold his one year old low mileage car for almost $10,000 more than Blue Book. It had a lot of options most people wouldn't care about, but someone wanted them. Advertising where the interested people are--here for a Cherokee, on Corvette Forum for a Corvette--may help your sale price a lot.

If you're trading, to most dealers your car is a commodity that may go to auction, and the dealer isn't particularly interested in it except for its assured value.

BTW, I have gotten well over Blue Book in trade--sight unseen in one case--from a dealer and salesman I've dealt with in the past, who knows my cars are well taken care of, and who won't have to send them to auction. He listed them on his web site for about $2400 more than he paid me and sold them in about a week. They were Dodges selling at a Chrysler/Dodge/Jeep dealer, so people looking at his site already were likely interested. I probably could have gotten some of that money selling privately--but I'm not in the car sales business and have other things to do with my time.

Over all, if you've got a car in good shape you're likely to do better financially by keeping it in good shape and driving it--until it eventually gets to the point that it just isn't economical any more to do repairs.
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post #34 of 55 (permalink) Old 01-21-2017, 11:43 AM
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Originally Posted by SpeedtekTH View Post
I would disagree on that one........more options ALWAYS ensure better resale value (and trade in)
I think we're talking to-may-to vs. to-mah-to here, but your statement, as written, could be misinterpreted. Assuming all other factors are equal, a "loaded" pre-owned vehicle will probably sell faster than a "plain Jane" model, but the extras will actually lose a greater percentage of their original sticker price.

Generic Example: A base model with minimal options originally stickers for $28,000 and retains a residual trade-in value of $14,000 after three years. A loaded model originally stickers for $38,000 and retains a residual value of $16,000 after three years. So $10,000 worth of original-purchase upgrades lose $8,000 – or 80% – of value over three years, whereas the base vehicle, minus upgrades, loses only 50% of value.

So yes, upgrades do enhance residual value, but at a significantly lower rate than their original cost. Then, when you isolate individual upgrades, some are worth more than 20% of their original price, while others are absolutely worthless in terms of increasing trade-in value. For instance, upgrading from the Latitude trim to the Altitude bumps the original sticker price, but that upgrade will be insignificant at trade-in. By contrast, we can expect the tow package to retain almost 100% of its original cost at trade-in.

Bottom line: Buy the upgrades that will be valuable to you while you own your vehicle, because they won't be worth much when you trade in.

Note to modders: Enjoy making it your own, but be prepared for the reality that your investment of time and money may not be valued in the resale market. Another example: The previous owner of my Limited spent a couple hundred dollars on a full assortment of stick-on chrome trim. No offense to those who like the chromed look, but it's not my style. It was actually a liability when I looked at the vehicle as I wondered if the paint would be marred when I removed the chrome stuff. Removing the chrome stick-ons was the first thing I did when I got my KL home.

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post #35 of 55 (permalink) Old 01-21-2017, 03:35 PM
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Completely agree about mods. When I swapped out my WK2 I had Power Stop drilled and slotted rotors and ceramic pads that were fairly new and barely used. I saw guys in the service department pulling them immediately to swap out on their own Grand Cherokee. I had no replacements do I couldn't have sold them on Jeepgarage.org.

But I did get a nice aFe CAI off a guy on here who was teasing in his TH. Mods are pretty much because you want them. No tease in value whatsoever.

I wish they had power stop pads and rotors for the KL/TH. I loved them.


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post #36 of 55 (permalink) Old 01-21-2017, 04:00 PM
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Originally Posted by Champagne InHand View Post
I wish they had power stop pads and rotors for the KL/TH. I loved them.
Ask and ye shall receive. i am running the severe duty towing pads and the drilled rotors on my KL right now, as is @Len1304.

http://www.powerstop.com/products/#y...EP&mo=CHEROKEE
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post #37 of 55 (permalink) Old 01-21-2017, 10:10 PM Thread Starter
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Lol, I said Toyota quality based on my fantastic experiences with owning them. Don't get too worked up guys.
My last Toyota was a 2007 Tundra. When I traded it in after about 2.5 years it had only lost about 20% of its value. That's leaps and bounds better than this Cherokee has treated me as far as value.
Anyways,I'm trading the Cherokee in on a new Tacoma TRD Offroad next week.

Will miss the community, but not the Jeep. There's a bunch of good, knowledgeable guys here for sure!
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post #38 of 55 (permalink) Old 01-21-2017, 10:17 PM
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Originally Posted by bruceg View Post
Lol, I said Toyota quality based on my fantastic experiences with owning them. Don't get too worked up guys.
My last Toyota was a 2007 Tundra. When I traded it in after about 2.5 years it had only lost about 20% of its value. That's leaps and bounds better than this Cherokee has treated me as far as value.
Anyways,I'm trading the Cherokee in on a new Tacoma TRD Offroad next week.

Will miss the community, but not the Jeep. There's a bunch of good, knowledgeable guys here for sure!


Enjoy. My buddy loves his Tacoma. He was thrilled to get back to a real stick shift. He's very old school in that sense but I get it.


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post #39 of 55 (permalink) Old 01-22-2017, 12:25 AM
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Quote:
Originally Posted by bruceg View Post
Lol, I said Toyota quality based on my fantastic experiences with owning them. Don't get too worked up guys.
My last Toyota was a 2007 Tundra. When I traded it in after about 2.5 years it had only lost about 20% of its value. That's leaps and bounds better than this Cherokee has treated me as far as value.
Anyways,I'm trading the Cherokee in on a new Tacoma TRD Offroad next week.

Will miss the community, but not the Jeep. There's a bunch of good, knowledgeable guys here for sure!
I think the key difference is comparing a solid truck to a unibody car/jeep. A wrangler, f150, Silverado etc depreciate slower than a car based platform. The KL is on a car frame. As are all CUVs. Trucks are not car based.

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post #40 of 55 (permalink) Old 01-22-2017, 06:34 AM
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Options make resale much easier. Resale price is more of a function of depreciation on the whole vehicle. Yes, the more options the more depreciation in total you will have. But resale might be easier.
An example is, I really expect the FCW, cross path detection, blind spot detection etc. to be the norm in new cars in 5 years. If your vehicle has it now yours will be in demand at resale time.
Just my humble opinion.
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