The Jeep Grand Cherokee is an iconic Jeep which has been around since 1992. It has grown into somewhat of a staple in the Jeep family providing a compromise between off road capability and styling that is not offered in the other Jeep models. The question though is; do Jeep Grand Cherokees hold their value?
Jeep Grand Cherokees, like most new vehicles, lose a lot of value once they have left the shop floor. A Jeep Grand Cherokee will depreciate by 30% after the first year and up to 56% after 5 years.
This is better than their main rival in the US market, The Ford Explorer, but when stacked up against other vehicles within the same category such as the Toyota Land cruiser, the numbers don’t look so good.
As far as styling and general appeal go, the Grand Cherokee has been a huge hit. It moves away from the rugged off-road look and feels that come with the Wrangler and other models and gives it one that fits seamlessly in a family or corporate setup.
Even though it may look meeker, it still has great off-road capability in the Trail Rated versions. It is indeed, the ideal cross that satisfies both the avid trailers as well as those who want to use it as a day-to-day car.
How Much do Jeep Grand Cherokees Depreciate?
As far as holding its value is concerned, the Jeep Cherokee does lose a significant amount of value over time. If you buy it brand new, it will depreciate by 30% after the first year and this number is expected to rise to about 56% within 5 years.
For this reason, it really doesn’t make a lot of financial sense to buy a brand new Jeep Grand Cherokee. It’s a good idea to buy a 2 year old one which is still somewhat current and, in most cases, will still be in great condition.
At that stage, you will save a lot of money for a relatively new vehicle and the depreciation would have slowed down. If you do still decide to go for a brand new one, one of the things you need to realise is that the Grand Cherokee ranks quite highly among the most popular SUVs in The United States and Canada.
This means that if you decide to sell down the road, you will be competing against other Grand Cherokee owners. The supply on the market is huge meaning that you may be forced to drive the price down in order to sell it.
Should I buy a used Jeep Grand Cherokee?
If you are considering buying a used Grand Cherokee, there are a few things that you need to be mindful of. The most durable Jeeps on the market are pre 1997 models with the litre engines.
These have held up well to this day and have a great engine and axle. The resale value for these is great because of it. If you buy and maintain it well, you’ll get a really good deal for it when you eventually resell it.
If you are going for the newer models, consider buying one that is 2 to 4 years old. They will generally still be in good condition and you can enjoy some good years on it. Y
ou do need to make sure that they have a good service record. Jeep Grand Cherokees will experience some problems which you need to be mindful of. This is especially true for the newer models. The worst model of the Jeep Grand Cherokees is the 2011 model. It has a host of problems and would be a bad investment. Stay away from it.
Conclusion on Jeep Grand Cherokee Depreciation
Jeep Grand Cherokees may not hold their value well especially if you are buying it brand new but it is a great SUV to own. If maintaining resale value is a concern that you have, the best thing would be to get a pre owned one.
You will get a really good deal for a vehicle that is pretty much brand new. Just make sure to do your due diligence and research the different offerings and pick one which is best suited to your needs.