Best time to sell? - Page 2 - Jeep Garage - Jeep Forum

Go Back   Jeep Garage - Jeep Forum > Jeep Platform Discussion > Grand Cherokee - WK2 -

Join Jeep Garage Today
Reply
 
Thread Tools Display Modes
 
  #13  
Old 04-19-2016, 02:45 PM
jgc4ever's Avatar
Senior Member
My Jeep: 2015 WK2
 
Join Date: Mar 2011
Location: Omaha Nebraska
Posts: 4,064
Thanks: 180
Thanked 256 Times in 205 Posts
Rep Power: 1162110
jgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond reputejgc4ever has a reputation beyond repute
Garage
Re: Best time to sell?

Being out of warranty, especially if there is a problem that would cost money to fix, along with a careful eye on kbb value and a gut feeling that my trade is retaining higher value than I would expect, along with a new model I really want, is what made my decision to trade my 2012 Overland for a 2015 High Altitude.


Sent from my iPhone using JeepGarage

Reply With Quote
Sponsored Links
Advertisement
 
  #14  
Old 04-19-2016, 02:50 PM
Member
My Jeep: 2014 5.7L WK2
 
Join Date: Apr 2015
Posts: 98
Thanks: 28
Thanked 20 Times in 11 Posts
Rep Power: 838
Jeepstare is on a distinguished road
Re: Best time to sell?

I doubt Protect's original motivation for posting this was not to seek financial advice about his personal situation or to seek the general input from the forum about financing in general. Perhaps it's more closely focused on amortizing his loan balance versus the depreciation of his car? Obviously if you retire your loan balance quicker than depreciation, your equity position will hold. If there isn't any risk in deteriorating your equity amt you should be in no position to rush into another vehicle or decision. To that end, jeeps hold their value well, comparatively, IMHO. Go on KBB price out a similar spec jeep to yours with 20k mi, 30k mi, 50k mi, etc. Forecast the depreciation and compare that with you am schedule. Or make some accelerated payments. With a 9k buffer you are in a good position, better than most - as others have referenced in this thread. Cars are always a poor investment, but they're a necessity and passion - look at this forum for example!
Reply With Quote
The Following User Says Thank You to Jeepstare For This Useful Post:
  #15  
Old 04-19-2016, 02:55 PM
Member
 
Join Date: Mar 2011
Posts: 372
Thanks: 11
Thanked 33 Times in 29 Posts
Rep Power: 2621
rszwestko is on a distinguished road
Re: Best time to sell?

Quote:
Originally Posted by protect1989 View Post
Everyone is making excellent points on both sides of the argument.

For me, I have 12% of my paycheck going towards retirement, my company gives me a vehicle allowance, I have no loans or credit card debt (minus the jeep), and am single with no kids. Not everyone is out there racking up debts and financing things they cant afford. Believe it or not, some people actually have their shit together.

I dont plan on selling my vehicle until 2017 at the earliest. The point of this post was to gauge how other people think and when they would be most likely to sell their vehicle. Not just to gain insight on my own situation
I am with you on the financing side, no need to turn this into a personal finance discussion. As for getting rid of it for something else, my personal take would be to wait for something that I really like, If i had a 2014 now, I would definitely wait for 2018 and up, as for value of the car I lease just for that reason to avoid trade-ins, depreciation, I know before going into the contract what the depreciation is and make a decision if the car is "worth" getting or not. Even if i didn't lease I probably wouldn't keep it for longer than 3-4 years.
Reply With Quote
  #16  
Old 04-19-2016, 03:03 PM
CHALLENGERBIZJET's Avatar
Senior Member
My Jeep: 2014 5.7L WK2
 
Join Date: Sep 2012
Posts: 2,905
Thanks: 258
Thanked 189 Times in 152 Posts
Rep Power: 10163
CHALLENGERBIZJET has a reputation beyond reputeCHALLENGERBIZJET has a reputation beyond reputeCHALLENGERBIZJET has a reputation beyond reputeCHALLENGERBIZJET has a reputation beyond reputeCHALLENGERBIZJET has a reputation beyond reputeCHALLENGERBIZJET has a reputation beyond reputeCHALLENGERBIZJET has a reputation beyond reputeCHALLENGERBIZJET has a reputation beyond reputeCHALLENGERBIZJET has a reputation beyond reputeCHALLENGERBIZJET has a reputation beyond reputeCHALLENGERBIZJET has a reputation beyond repute
Re: Best time to sell?

Its only worth it if you can afford it,if that's the case then go for it. It only has to make sense to YOU and your ability to pay for it. 😎
Reply With Quote
  #17  
Old 04-19-2016, 03:13 PM
Member
My Jeep: 2013 5.7L WK2
 
Join Date: Feb 2013
Posts: 114
Thanks: 1
Thanked 20 Times in 16 Posts
Rep Power: 2063
kbre has a reputation beyond reputekbre has a reputation beyond reputekbre has a reputation beyond reputekbre has a reputation beyond reputekbre has a reputation beyond reputekbre has a reputation beyond reputekbre has a reputation beyond reputekbre has a reputation beyond reputekbre has a reputation beyond reputekbre has a reputation beyond reputekbre has a reputation beyond repute
Re: Best time to sell?

All of you are wrong...Best time to sell is when you have a buyer willing to pay what you think your GC is worth.
Reply With Quote
The Following 2 Users Say Thank You to kbre For This Useful Post:
  #18  
Old 04-19-2016, 03:17 PM
Member
 
Join Date: Sep 2012
Location: Hayward, WI
Posts: 75
Thanks: 18
Thanked 7 Times in 6 Posts
Rep Power: 1768
Newt is on a distinguished road
Re: Best time to sell?

To answer your original question, I would figure out how many miles/year you drive and re-run KBB to see what it would be worth with additional miles and calculate what you would owe at that point. Your equity in the vehicle may go down, or may stay flat. I think there are miles when the KBB value takes a bigger hit, like 50K, 75K, etc. but am not sure what they are. I realize this will only get you a ball-park as the car will be a year or more older and the KBB value will change accordingly, but it is a place to start.

Also, you should consider when your warranty will run out. At some point you may need to put more into the car for maintenance, so you may want to trade it in before putting on a new set of tires or getting a brake job just to save some cash.
__________________
Own: 2016 Limited 75th Anniversary, 4x4, Hemi, Lux, Adv Tech, ORII, Recon Green, Beige/Lt. Frost

Formerly Owned: 2014 Overland, 4x4, Hemi, ORA II, Adv Tech, Max Steel, Indigo/brown

1994 Jeep Grand Cherokee Limited
Reply With Quote
The Following User Says Thank You to Newt For This Useful Post:
  #19  
Old 04-19-2016, 04:11 PM
Member
My Jeep: 2014 5.7L WK2
 
Join Date: Apr 2015
Posts: 98
Thanks: 28
Thanked 20 Times in 11 Posts
Rep Power: 838
Jeepstare is on a distinguished road
Re: Best time to sell?

Quote:
Originally Posted by Newt View Post
To answer your original question, I would figure out how many miles/year you drive and re-run KBB to see what it would be worth with additional miles and calculate what you would owe at that point. Your equity in the vehicle may go down, or may stay flat. I think there are miles when the KBB value takes a bigger hit, like 50K, 75K, etc. but am not sure what they are. I realize this will only get you a ball-park as the car will be a year or more older and the KBB value will change accordingly, but it is a place to start.

Also, you should consider when your warranty will run out. At some point you may need to put more into the car for maintenance, so you may want to trade it in before putting on a new set of tires or getting a brake job just to save some cash.
why didn't I think of that?
Reply With Quote
  #20  
Old 04-21-2016, 03:02 PM
Member
 
Join Date: Feb 2016
Posts: 46
Thanks: 2
Thanked 10 Times in 6 Posts
Rep Power: 489
Blkfenders is on a distinguished road
Re: Best time to sell?

Quote:
Originally Posted by MOFSTEEL View Post
+1

I don't understand how having a few K in equity means it's smart to sell and buy another car? I've never sold a car I didn't own outright and never leased so I may be in the minority.

OP put down 12k
made about 4k in payment
bought tires and other accessories? 1k
--------------------------------------
Total expense 17k
What you hope to get back 9k
-----------------------------
So you spent 8k to drive the Jeep less than 10 months.

If you think it's worth it then go for it.
+1 ^^ This.

I've never understood why people think that positive equity against a loan is necessarily a reason to cash in. Granted, it's better than negative equity and rolling the loss into a new loan... but the REAL question you need to answer is what is the cost of ownership. MOFSTEEL summed it up nicely, the cost of ownership in this scenario is about $8K!!! It makes no difference if you have $9000 or $9 dollars in equity, the fact is you spent $8000 to own your current GC for 10 mos.

Quote:
Originally Posted by Newt View Post
To answer your original question, I would figure out how many miles/year you drive and re-run KBB to see what it would be worth with additional miles and calculate what you would owe at that point. Your equity in the vehicle may go down, or may stay flat. I think there are miles when the KBB value takes a bigger hit, like 50K, 75K, etc. but am not sure what they are. I realize this will only get you a ball-park as the car will be a year or more older and the KBB value will change accordingly, but it is a place to start.

Also, you should consider when your warranty will run out. At some point you may need to put more into the car for maintenance, so you may want to trade it in before putting on a new set of tires or getting a brake job just to save some cash.
Building on to my comments above... this exercise will help you determine where your depreciation curve starts to flatten out. Obviously the greatest amount of depreciation is in the first couple of years usually, so there's good reason to believe that your positive equity will stay at least as good as it is now, but the cost of ownership will go down on an amortized basis. At some point (most likely about 36 mos.) you will see that the amortized cost of ownership will be about the same or slightly better than if you had leased. The longer you continue to own the vehicle, the amortized expenses should continue to go down. The trick is to avoid the maintenance expenses after the warranty expires which will add to your ownership expense. When you get to a certain point the amortized cost of ownership is at it's best, but you start to have unexpected & sometimes expensive repairs. These things not only add to your ownership costs but also make your car unusable for periods when it's in the shop. Which is a problem if you depend on your vehicle to get to work, etc. It's usually just before this stage that trading to a newer model will make the most FINANCIAL sense. Car buying is an EMOTIONAL thing for most of us here, so there's a little liberty to exercise before this stage occurs.


Only you can decide at what point you're willing to make the tradeoff. But it should be with an eye on cost of ownership... NOT on some perceived stash of cash in positive equity
__________________
'13 Jeep JKU - AEV JK350 Clone (sold)
'16 Grand Cherokee Overland - Hemi
Reply With Quote
  #21  
Old 04-21-2016, 03:31 PM
Member
My Jeep: 2015 3.0L WK2
 
Join Date: Feb 2014
Location: Tacoma, WA
Posts: 260
Thanks: 5
Thanked 25 Times in 21 Posts
Rep Power: 1417
MBDiesel is on a distinguished road
Re: Best time to sell?

When contemplating selling my '14 and getting a '15, I calculated how much depreciation per month I'd taken and compared that to what I would have paid if I leased the '14. In my case, I sold my '14 Limited diesel for $37,000 with 24k on it 22 months after I drove it off the lot. It ended up being a bit less than the lease, and I got to drive more than a lease would have allowed. It also helped that I got a really good deal on the '15 since the '16s were on their way. Multiple rebates plus a good dealer discount made it work.

I have the means to pay cash if I want to, but in today's environment of almost free money, why? It's easy to put that cash to work with zero risk and make at least 1% in a high yield money market or CD which is higher than many promotional financing rates. Plus, for many with not as much or mediocre credit history, having an auto loan and paying it on time will build and reinforce good credit. For some that's worth the finance charge price of admission.
__________________
2015 WK2 EcoDiesel Overland 4x4 Billet Silver, ORAII, ATG
1990 Mercedes-Benz 300D 2.5 Turbo - 155k
No sparks allowed!
Reply With Quote
  #22  
Old 04-21-2016, 04:31 PM
Jeff_H2O's Avatar
Member
 
Join Date: Apr 2013
Location: Northern IL
Posts: 278
Thanks: 0
Thanked 7 Times in 6 Posts
Rep Power: 325976
Jeff_H2O has a reputation beyond reputeJeff_H2O has a reputation beyond reputeJeff_H2O has a reputation beyond reputeJeff_H2O has a reputation beyond reputeJeff_H2O has a reputation beyond reputeJeff_H2O has a reputation beyond reputeJeff_H2O has a reputation beyond reputeJeff_H2O has a reputation beyond reputeJeff_H2O has a reputation beyond reputeJeff_H2O has a reputation beyond reputeJeff_H2O has a reputation beyond repute
Re: Best time to sell?

Quote:
Originally Posted by Blkfenders View Post
+1 ^^ This.

I've never understood why people think that positive equity against a loan is necessarily a reason to cash in. Granted, it's better than negative equity and rolling the loss into a new loan... but the REAL question you need to answer is what is the cost of ownership. MOFSTEEL summed it up nicely, the cost of ownership in this scenario is about $8K!!! It makes no difference if you have $9000 or $9 dollars in equity, the fact is you spent $8000 to own your current GC for 10 mos.
I'm also in agreement with this. Just paid mine off last month and per KBB, the current Trade in value is around $28k. So that means all 28k would be positive equity. Sounds great right? But at the same time, I bought the vehicle for $45k when brand new. I've had the vehicle for 3 years, so like mentioned above, that means I've paid $17k to have it for the last 3 years, about 5.6k a year.

But the longer I keep the vehicle, while it will continue to depreciate, the better value I will be getting out of it. For instance, let's use the numbers I just put up and assume my Jeep will continue to depreciate on average 3k each year, this is how it plays out when keeping the vehicle:

(note depreciation rate will vary depending on how many miles are on vehicle)

We'll start with 3 years since that's how long I've currently had it, granted it's a 2014 model which for trade in purposes only appears as 2 years old.
3 years, $45k new - 28k trade = 17k / 3 = $5,660.00 per year to own
4 years, $45k new - 25k trade = 20k / 4 = $5,000.00 per year to own
5 years, $45k new - 22k trade = 23k / 5 = $4,600.00 per year to own
6 years, $45k new - 19k trade = 26k / 6 = $4,330.00 per year to own
7 years, $45k new - 16k trade = 29k / 7 = $4,140.00 per year to own

Anyways, in a nut shell, the longer you keep the vehicle, the less per year you will have payed to own it. Not by a lot, but it does go down each year. Hope that makes sense.

For that reason, I'd rather enjoy the next several years with no car payments in a semi still new vehicle and get more of my moneys worth.

Now while I say that, I can also see the enticing aspect of getting a new vehicle. For instance, since the Charger Scat Packs have come out, I've had a big craving to get one. And with a MSRP of around $43k, with trade in, I could essentially buy one for only $15k in financing. So I can see how the temptation to buy again get's to people as it is nice to have the newest and current toy out there.
__________________
2014 JGC Overland, Maximum Steel V6 4x4, Black Interior
Reply With Quote
  #23  
Old 04-21-2016, 09:41 PM
Member
 
Join Date: May 2013
Posts: 149
Thanks: 0
Thanked 10 Times in 9 Posts
Rep Power: 1602
2zero12wk2 is on a distinguished road
I'm considering selling my 2012.
Only thing holding me back is my extended warranty.

In the past I've done well selling my cars with warranties(12 months or less) on them. I find I can ask for more doing that.

Based on this I'm keeping my ride for 2 more years.

Looks like I'll be picking up a 2018/2019 WK2, hopefully V8.
Reply With Quote
  #24  
Old 04-22-2016, 08:00 AM
Jim_in_PA's Avatar
Super Moderator

My Jeep: 2012 5.7L WK2
 
Join Date: Jul 2012
Location: SE PA (central Bucks County)
Posts: 4,764
Thanks: 877
Thanked 697 Times in 556 Posts
Rep Power: 96668
Jim_in_PA has a reputation beyond reputeJim_in_PA has a reputation beyond reputeJim_in_PA has a reputation beyond reputeJim_in_PA has a reputation beyond reputeJim_in_PA has a reputation beyond reputeJim_in_PA has a reputation beyond reputeJim_in_PA has a reputation beyond reputeJim_in_PA has a reputation beyond reputeJim_in_PA has a reputation beyond reputeJim_in_PA has a reputation beyond reputeJim_in_PA has a reputation beyond repute
Garage
Re: Best time to sell?

'zero, if you want a V8, you'll probably want to hedge your bet and do the MY18. There's no assurance there will be a V8 offered on the new platform and the very early engine information released to-date is pointing to smaller power plants that are augmented.
__________________
2012 GC Overland Summit - Winter Chill with New Saddle interior. 5.7L HEMI V8 - Pirelli Scorpion Verde Plus "shoes" - LED fogs and DRLs



Day-job...Telecom Technical Sales
Avocations...Woodworking, Equestrian, Food, Photography
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
the best place to sell my Jeep jvigoa31 Wrangler-YJ, TJ & JK 5 12-01-2015 01:04 PM
To sell or not to sell?? Birds1969 Suspension/Driveline/Brakes/Wheels/Tires 2 09-12-2013 05:49 PM
Best place to sell 2011 GC Lerado wheels auswk2crd Wheels and Tires 1 08-06-2012 01:18 AM
To sell or not to sell QuickOne Grand Cherokee SRT8 - WK 13 02-07-2012 07:39 AM
best way to sell a high-mileage Jeep GC ehorst Grand Cherokee - WK2 - 19 01-10-2011 02:15 PM

» Premium Vendor Showcase
Powered by vBadvanced CMPS v3.2.3

All times are GMT -5. The time now is 01:42 AM.


Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Copyright 2012 - JeepGarage.Org
The Jeep Grand Cherokee Owners Community

JeepGarage.org is in no way associated with or endorsed by FCA US LLC. Chrysler, Dodge, Jeep, Ram, Mopar and SRT are registered trademarks of FCA US LLC.