Investing in or selling a Jeep could be a rewarding venture. Before making any quick decisions, you first need to know how well Jeeps hold their value.
Jeeps have good resale value. After five years, Jeeps can still sell for about 60% of their original price. Jeeps can be resold for around 70% after three years of driving, while most cars resell for only 40% to 60% after the first three years of ownership.
Whether you’re looking to invest in a Jeep or are selling one to invest in another vehicle, this article will help you determine the resale value or overall investment reward of the Jeep in question. Continue reading to get more information on how well Jeeps hold their value.
The main factor affecting the resale value of a Jeep is its depreciation rate. Depreciation describes how quickly the vehicle loses its value. Experts determine the vehicle’s depreciation rate based on reliability and the cost of repairs.
According to CarFax, the average vehicle depreciates 20% in the first year of ownership and 15% every year after. See how this depreciation rate would impact a $35,000 car in the table below!
|Years of Ownership||Rate of Depreciation||Vehicle Resale Value|
Within the first five years of ownership, the vehicle has already lost nearly half of its original value!
Jeeps tend to ignore the standard rate of depreciation. According to Car Edge, most Jeeps depreciate 25% in the first year of ownership. Don’t let this turn you away, in the subsequent years of ownership Jeeps show less than 10% of depreciation on average.
See how this would impact the resale value of a Jeep Wrangler in the table below! For these calculations, a selling price of $43,391 is assumed.
|Years Old||Depreciation||Residual Value||Resale Value|
As you can see, Jeeps have an extremely low rate of depreciation. While the average vehicle lost 80% of its value in the first five years, the Jeep lost less than half of that! These numbers prove that Jeeps have great resale value.
Reselling a Jeep
Where to Resell a Jeep
There are several online sites where Jeep owners can sell their vehicles. However, these sites tend to lowball their customers. Take your Jeep to a trustworthy dealership or list it on a public marketplace to get the highest resale value.
Is It Easy to Resell a Jeep?
Because Jeeps are so popular, they are very easy to sell. However, several factors will impact how quickly your specific Jeep sells.
One thing that will affect the resale appeal of your Jeep is its vehicle history. Jeeps with a clean record sell faster than cars with accident reports.
The number of miles on your Jeep is also a major part of its value when reselling. When people are looking for used cars, they’re generally trying to spend less while maximizing the number of years they can get out of it. Potential buyers expect vehicles with lower mileage to drive for more years.
For example, a Jeep with 70,000 miles will sell much faster than a Jeep that has almost 200,000 miles on it. The other benefit to reselling a Jeep or any car with fewer miles is that will sell for more. Because buyers want a low-mileage vehicle, they’re usually willing to pay more for Jeeps with lower mileage counts.
Are Jeeps Good Investments?
Now that you know Jeeps have a good resale value, you can expect to pay more for a used Jeep than you would a used vehicle from another brand. Since used Jeeps are more expensive, are they not a good investment?
Investing in a new or even used vehicle is a big commitment, so you should consider the most important factors before making your decision. These include initial price, gas mileage, maintenance costs, resale value, practicality, and lifespan. All factors considered, Jeeps are most definitely a good investment.
One of the particularly outstanding things that makes Jeeps a good investment is their life expectancy, in both years and miles.
Some cars start having significant issues of some kind as early as five years. Jeeps blow past this deadline. If a Jeep is in good hands and is taken care of and maintained well, it could realistically last up to 15 or 20 years.
There are a significant number of consumer reports of Jeeps lasting 20 years or more. These Jeep owners took care of regular maintenance like frequent oil changes, brake and steering control checks, and any abnormal issues that occurred. Many of these drivers reported that their vehicles reached 250,000 miles before needing replacing.
Like with the number of years it will last, a car that’s well taken care of has a certain amount of miles that it should be able to make it. In this case, it’s roughly 100,000. However, Jeeps that are extremely well taken care of can put on up to 400,000 miles, which is impressive.
Check out this table to see just how long certain Jeep models last!
|Jeep Model||Average Lifespan (years)||Average Miles|
|Cherokee||15 to 20||200,000 to 400,000|
|Patriot||10 to 15||100,000 to 200,000|
|Rubicon||10 to 20||90,000 to 300,000|
|Liberty||10 to 15||150,000 to 300,000|
|Wrangler||10 to 15||100,000 to 280,000|
|Commander||10 to 15||150,000 to 200,000|
*Note: Don’t be afraid to purchase a Renegade based on these numbers alone, the Renegade has only been around for the last five years.
Do Jeeps Have Good Gas Mileage?
Purchasing a vehicle with good gas mileage could save you hundreds of dollars every year, therefore significantly impacting the success of your investment.
Gas mileage for Jeeps could be worse, but it’s not great.
Older Jeep models averaged 15 to 18 miles per gallon in the city and sometimes reached 20 miles per gallon on the highway.
More recent Jeep models average 20 to 24 miles per gallon in the city and 30 to 25 miles per gallon on the highway. Routine maintenance can help your Jeep get better gas mileage.
Compared to newer, hybrid vehicles, Jeeps get terrible gas mileage; however, when comparing Jeep to similar vehicle models, this is a fairly average gas mileage. Consider these numbers before switching to a Jeep.