Just curious what the rate of depreciation will be on Jeep's flagship model. I will be purchasing a 2013 Overland and selling my 2011 Overland and am curious how much I will lose. I'm financed at 3% variable in Canada here. Does anyone have the black/blue book figures on an extra clean jeep overland WK2? I figure that by the fall of 2012 I'll have ~30,000km or ~18,500 miles and 70,000 remaining km for warranty or 3 years. Resale should be higher then most two year old vehicles since it's the top of the line model with low mileage and basically full bumper-bumper warranty.
Anyones insight would be great! Whatever the depreciation is, I will save that approximate cost and use that towards my new jeep to essentially start the whole financing process from scratch with a likely bug-free model.
Future depreciation is hard to predict. Will depend among other things on the price of gas in 2012. In 2008 gas was high and depreciation was brutal on big vehicles, and Jeeps in particular. Thanks also to Chrysler's problems at the time it was a buyers' market in my area, and you could throw the blue book out the window.. Keep an eye on the Middle East, cuz things are happening there that cold send the price of gas up. Your plan doesn't sound like a winner from a financial point of view, but if all you want is a new vehicle and are prepared to pay, then I wish all the best.
I always count for about $10K of the sticker for the first couple of years on just about any make. I am with you, I will be trading mine for the 2013 STR8 if I can wait that long.
Hummmm this is kind of odd. You have a brand new 2011 Overland but yet you already have plans to sell that and get the exact same thing again in a couple years. Wow thats not a waste of money or anything lol. No matter what you do you are going to be losing your ass big time on that especially if you trade it in. Private party sale wont be as bad but your still going to be losing a LOT of money. If you were going to sell the Overland and get a different model such as an SRT8 then I could understand that, but to sell a 2011 Overland for the exact same thing 2 years later just seems goofy to me. But hey its your money and if thats what you want to do... Plus what makes you think in a couple years that your going to even want a Grand Cherokee?!?!?
not to be a jerk but some of you guys have no clue. my accountant makes me buy a new vehicle every three to four years. get to use it, company pays for everything, write off the cost and then depreciate it. there are valid reasons to toss a vehicle after two years, and possible tax savings.
I usually sell within the family because one such family member cannot typically afford to buy brand new, so in a sense I'd be doing him a great favor. But if you what you guys are saying is true in terms of $10k, then damn...that is a lot. Maybe I'll have to wait longer to sell him my vehicle so I'm not essentially throwing my money away. I do love my Overland...I love it to death, but I was thinking that the sell in 2 1/2 year plan was okay.
Thanks for the tips and info...I will hold off based on what you all have said. Maybe he can buy a used WK2 from someone who does what I wanted to do.
Well, I am planning to buy a used Overland for my wife once used get cheap.
I already have mine and want to buy my wife the same car since she love mine. I am just waitting for prices to go down and more WK2 get to the used market.
She has a Liberty and she wants to upgrade big time hehe.
^^^In my experience with Chryco cars/trucks, within three years, prices are generally at 50% of new. I expect in three years to see used 11' overlands for 22k-25k.
Thats pushing it a bit. If gas goes back to $4-$5/gallon yes. Otherwise they will probably be around $28-30K in a few years. I am sure you can get a 4x2 or ragged out one for $22-25K
Brutal...not sure if that's correct though. I bought an '06 overland in spring '09 and paid 23k for it after taxes and everything and it had 80,000km. Black book for an overland with hemi/nav/media center at that time was around $19,500. Now If I sell my '11 Overland in the fall of '12 with 35,000km how much should I get? I'm guessing $35k-38k What's nice is that the vehicle is a '11 so people will think it's only a year old if I sell it in the fall of 2012. Oh and it'll have 3 years of bumper to bumper or 65,000km remaining of warranty. If I sell it to a family member which I intend to, then I'll have to take a hit...but if I can sell at a higher price then why not right?
In my area in Dec 2008, one year old WKs were going at 50% depreciation (at the dealer!). I like a bargain so I have my sales receipt to prove it. But if that's not brutal for the first buyer, then what is?
Buying for personal or business use are two separate issues. In personal use it's your own wallet that feels the hurt. For businesses, it's the taxpayer that pays for the depreciation. In either case someone loses big time in the first two years of ownership of any vehicle.
For businesses, it's the taxpayer that pays for the depreciation. In either case someone loses big time in the first two years of ownership of any vehicle.
here ya go - see if your accountant thinks this may apply to you this year
Generally, if you are an employee, to deduct your car expenses including expenses that exceed reimbursement under an accountable plan, you must complete Form 2106 (PDF) or Form 2106-EZ (PDF) and itemize your deductions on Form 1040, Schedule A. Your expenses will be subject to the 2% of adjusted gross income limit. Refer to Topic 508 for information on the 2% limit. If you are self-employed, car expenses are deductible on Form 1040, Schedule C (PDF) or Form 1040, Schedule C-EZ (PDF), or on Form 1040, Schedule F (PDF) if you are a farmer.
Resale should be higher then most two year old vehicles since it's the top of the line model with low mileage and basically full bumper-bumper warranty.
Don't have any specific input on the absolute value of a new Overland in a few years but I will say that in terms of resale value percentage wise, well equipped vehicles generally have a lower resale percentage wise than lesser equipped vehicles. This is true for most vehicles (if not all).
Not a chance any 2011 will be mid 30s in 2013. Check cars.com for 2008/2009 fully loaded Cherokees and they are well under 30k certified with low miles (asking price).
Matter of fact I know where you can find a '11 overland with hemi, 7500 miles, untitled for right around $38k today.
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