How to Not Lose 60% in Two Months - JeepForum.com
Search  
Sign Up   Today's Posts
User: Pass: Remember?
Advertise Here
Jeep Home Jeep Forum Jeep Classifieds Jeep Registry JeepSpace Jeep Reviews Jeep Gallery Jeep Clubs Jeep Groups Jeep Videos Jeep Events Jeep Articles
Go Back JeepForum.com > General Jeep Forums > Jeep Buying Forum > How to Not Lose 60% in Two Months

Rough Country Deals at JeepHut.comEliminate Hood Flutter!!!Introducing MONSTALINER™ UV Permanent DIY Roll On Bed Line

Reply
Unread 10-26-2012, 11:29 PM   #1
XHEMIX
Registered User
 
Join Date: Oct 2012
Location: Cypress, Texas
Posts: 2
How to Not Lose 60% in Two Months

How? Easy don't buy a Jeep JK8.

I did, and now only two months and 6000 miles later I learned that my perfect condition Jeep JK8 value on the wholesale or trade-in market is now 60% less than when I bought it.

That has to be record depreciation. Right? Chrysler must be proud. Two months ago I traded my 2011 Challenger SRT8 for the JK8. Why? Because after 14 months Chrysler still had not unlocked the ECU codes and because I wanted a vehicle more suitable for high water.

Well I guess I am not going to be a Jeep enthusiast because the JK8 just did not suit me. So I thought better that I sell it and find something I really liked.

I took the Jeep to CARMAX for a free estimate. After 45 minutes they finally had my appraisal. My jaw must have dropped when they handed it to me, it said the two month old JK8 with 6000 miles in perfect condition was worth $19,000.

From $47,000 to $19,000 the instant it became a pre-owned vehicle.

I asked to speak with the appraiser. He said that the unibody had been cut and the JK8 package was welded to the unibody and that was considered a major repair alteration.

I explained that this was a factory authorized option installed by a factory authorized dealer not a chop shop in my back yard.

He told me that he spent most of the time doing the appraisal on the phone with auctions and talking to other appraisers and they all agreed that the value was $19,000 and is now considered a weld repair alteration in the wholesale market as far as CARMAX was concerned.

He said that taking the vehicle to the retail market myself was my best option. Well that really is not an option because it took my dealer 8 months to find a sucker. I want to sell or trade now before I have more miles on it.

I took it to my dealer and of course they disagree with the appraisal but agree that CARMAX pretty much has a stranglehold on that market for the consumer anyway. The dealer wanted no part of any deal to take it back.

So from now forward the option to trade-in is not available to me. I do not know how to sell a vehicle retail and really did not want to learn.

If you were ever considering a JK8 just beware.

XHEMIX is offline   Reply With Quote
Unread 10-27-2012, 06:31 PM   #2
Duck Doctor
Registered User
2006 TJ Wrangler 
 
Join Date: Jun 2005
Location: Blue Bell, Pennsylvania
Posts: 844
Pretty limited market for a vehicle like that. Selling a vehicle yourself is easy and not something you need to learn. Just post an ad on Craigslist or autotrader.
Duck Doctor is offline   Reply With Quote
Unread 10-27-2012, 07:23 PM   #3
CJ7-Tim
Real Jeeps have dents.
 
CJ7-Tim's Avatar
2000 XJ Cherokee 
 
Join Date: Apr 2002
Location: out in the garage - Minneapolis, Minnesota
Posts: 20,720
Trading in a vehicle almost always nets you the lowest of the wholesale or trade-in value. Selling a vehicle yourself maximizes the value you receive for it. Specialized and/or modified vehicles have a limited market, and usually sell at a dealership for inflated prices to impulse buyers.

AutoTrader, CarSoup or eBay will be your best bets for selling it and maximizing your retail ( not trade or wholesale ) selling price.

I once saw a lifted pickup truck inside the dealership with $2500 of retail priced aftermarket parts and tires. The sticker price of the truck was $6500 more than a stock truck with the same options.
__________________
.

.
Progressive Liberalism: Bringing you new ideas so wonderful, they have to include mandatory participation ......


Originally Posted by Ronald W. Reagan: Government is not the solution to our problem; Government is the problem.

.
CJ7-Tim is offline   Reply With Quote
Unread 10-28-2012, 04:28 PM   #4
grogie
Cell Block #4533
 
grogie's Avatar
2006 TJ Wrangler 
 
Join Date: Nov 2005
Location: Indy
Posts: 7,149
I believe that this is the vehicle in question:



I'm kind of surprised that you'd spend $47k on a speciality vehicle without thinking it over more, and realizing that you'd lose value should you sell it, ever, especially trading it in. Then to show up here and complain about Chrysler? There are guys that have spent $80k or more on an AEV JK, and they can't turn around and sell it and get their money back when they realize that a JK on 37s with a Hemi is not the best daily driver.

IMHO your JK8 just needs more lift. I think it's kind of cool, and unique. Enjoy!
__________________

Red Jeep Club #345
2006 TJ Sport
2004 KJ Limited
2013 Off-Road Trailer

grogie is offline   Reply With Quote
Unread 10-28-2012, 05:24 PM   #5
5-90
Registered User
1988 XJ Cherokee 
 
Join Date: Sep 2006
Location: San Jose, CA, Hammerspace
Posts: 5,249
Quote:
Originally Posted by XHEMIX View Post
How? Easy don't buy a Jeep JK8.

I did, and now only two months and 6000 miles later I learned that my perfect condition Jeep JK8 value on the wholesale or trade-in market is now 60% less than when I bought it.

That has to be record depreciation. Right? Chrysler must be proud. Two months ago I traded my 2011 Challenger SRT8 for the JK8. Why? Because after 14 months Chrysler still had not unlocked the ECU codes and because I wanted a vehicle more suitable for high water.

Well I guess I am not going to be a Jeep enthusiast because the JK8 just did not suit me. So I thought better that I sell it and find something I really liked.

I took the Jeep to CARMAX for a free estimate. After 45 minutes they finally had my appraisal. My jaw must have dropped when they handed it to me, it said the two month old JK8 with 6000 miles in perfect condition was worth $19,000.

From $47,000 to $19,000 the instant it became a pre-owned vehicle.

I asked to speak with the appraiser. He said that the unibody had been cut and the JK8 package was welded to the unibody and that was considered a major repair alteration.

I explained that this was a factory authorized option installed by a factory authorized dealer not a chop shop in my back yard.

He told me that he spent most of the time doing the appraisal on the phone with auctions and talking to other appraisers and they all agreed that the value was $19,000 and is now considered a weld repair alteration in the wholesale market as far as CARMAX was concerned.

He said that taking the vehicle to the retail market myself was my best option. Well that really is not an option because it took my dealer 8 months to find a sucker. I want to sell or trade now before I have more miles on it.

I took it to my dealer and of course they disagree with the appraisal but agree that CARMAX pretty much has a stranglehold on that market for the consumer anyway. The dealer wanted no part of any deal to take it back.

So from now forward the option to trade-in is not available to me. I do not know how to sell a vehicle retail and really did not want to learn.

If you were ever considering a JK8 just beware.
Bud, buying anything new is asking for major depreciation. You lose 30-50% of the value as soon as you drive over the kerb to leave the lot!

Why do you think I've never bought a new car? The way that OBD-II is going, "feature creep" resembles a sprint, and the proposals for OBD-III, I'm probably never going to buy a new car...
__________________
"recon" (sic - reckon)(tm) "hihgly"(tm) "seceed"(tm)
"Outback AIDS - Alcohol-Induced Dizzy Spells"
5-90 is offline   Reply With Quote
Unread 10-30-2012, 07:56 AM   #6
R U STUCK
Registered User
2004 TJ Wrangler 
 
Join Date: Jan 2008
Location: , Tyrone, Pa.
Posts: 2,873
Jeep is releasing a Jeep truck really soon. You could have waited...
__________________
2004 TJ Rocky Mountain, 4" Fabtech, Engine Mods, Sitting on 35"s
I Sell Jeeps To All You Peeps...
Email me for your next Jeep..bridgescars4sale@comcast.net
R U STUCK is offline   Reply With Quote
Unread 11-03-2012, 01:30 PM   #7
OnTheFence
Registered User
 
Join Date: Oct 2012
Location: USA, USA
Posts: 434
The OP understands that new cars depreciate.
He was just shocked at a 60% hit overnight.
This is understandable. The moral here is:
1) Never drop $50k on a new car anyway
2) Major alterations can crush value. Buy one that is already altered.

Sorry to hear of your major loss.
I would list the car nationally on Ebay and try to minimize your loss.
Also, spend as much time as you can posting that link everywhere you can.
For $30,000 it's worth a few weeks of your free time.
OnTheFence is offline   Reply With Quote
Unread 12-03-2012, 07:19 PM   #8
Antenna_X
Registered User
2010 JK Wrangler 
 
Join Date: May 2008
Location: Orlando, FL
Posts: 220
I think the JK8 is pretty cool. But there is a limited market, more of a show vehicle for SEMA or the dealership showroom. I am sure if you put it on ebay at no reserve you should get more than $19k for it. As for carmax, they dont want custom vehicles--I took my lifted custom wrangler there a few years back and low balled me, telling me it would be better for me to sell myself as they want stock vehicles.
Antenna_X is offline   Reply With Quote
Unread 12-04-2012, 10:05 AM   #9
IRSmart
Registered User
2011 MK Compass 
 
Join Date: Feb 2011
Location: Westminster, MD
Posts: 1,047
the thing that no one in here is understanding is that the OP did not buy a "JK8", he bought a JK unlimited with a $7,000 accessory on it. carmax doesn't care whether or not you car is plated with gold or has a pile of vomit from a homeless guy in the backseat. they take your vin, your mileage, your trim level, and your options, and their books tell them what the car is worth. they don't care that it has a JK8 conversion accessory package on it.

the moral of the story here is that this is not chrysler's fault, it is not carmax's fault, nor is it the original selling dealer's fault. this is your fault for not researching a specialty nitch car, and trying to flip it after you paid waaay to much for a JK8 converted wrangler. sorry dude, but the only person you have to be mad at is yourself.
IRSmart is offline   Reply With Quote
Unread 12-09-2012, 03:55 PM   #10
BlueDog58
Registered User
2003 TJ Wrangler 
 
Join Date: Sep 2012
Location: Midlothian, TX
Posts: 10
Quote:
Originally Posted by IRSmart View Post
the thing that no one in here is understanding is that the OP did not buy a "JK8", he bought a JK unlimited with a $7,000 accessory on it. carmax doesn't care whether or not you car is plated with gold or has a pile of vomit from a homeless guy in the backseat. they take your vin, your mileage, your trim level, and your options, and their books tell them what the car is worth. they don't care that it has a JK8 conversion accessory package on it.

the moral of the story here is that this is not chrysler's fault, it is not carmax's fault, nor is it the original selling dealer's fault. this is your fault for not researching a specialty nitch car, and trying to flip it after you paid waaay to much for a JK8 converted wrangler. sorry dude, but the only person you have to be mad at is yourself.
I have to agree.
And knowing this is why I have only bought one new vehicle in my life. Expensive lesson to learn. I've been buying from a wholeseller for probably 20 years now.

I understand that he, like any retail dealer is going to give you "black book" for your vehicle specific to the market your in and essentially nothing for modifications unless he has another customer specifically willing to pay more for those accessories. Most wholesellers sell for "blue book" - what you find on NADA or KBB's sites. The difference between the black book and blue book is thier margin. And I know reatailers are covering a lot of overhead, which is why retail proces are so high. And I know that their profit margin is actually highter on used cars than new - so its in their interest to take you to the cleaners on a trade.

That's why I've only bought one new car and won't again.
BlueDog58 is offline   Reply With Quote
Unread 12-18-2012, 03:11 AM   #11
BobA
Registered User
2001 TJ Wrangler 
 
Join Date: Sep 2006
Location: Cadiz,KY
Posts: 802
I could get 4 nice tj's for $47k.
__________________
01 TJ Sahara
6cyl. 5spd, D30 Aussie/D44 LSD,4.56 gears, RC2.5" lift, RC1.25" body lift, 33's

77 DJ5
Soon to be streetrod
BobA is offline   Reply With Quote
Unread 12-20-2012, 08:46 PM   #12
Golfin8
Registered User
1984 CJ8 
 
Join Date: Oct 2012
Location: Modesto, CA
Posts: 33
Umm, what about waiting till spring? This seems a horrible time to sell something like this.
Of COURSE CarMax is going to try to bend you over on an estimate...

Sell it yourself, and getting $28-30k should be no problem, and you might hold out for more. There's got to be at least a dozen other people out there who think Chrysler Pick-Up Jeeps are cool.
Golfin8 is offline   Reply With Quote
Unread 12-21-2012, 07:15 AM   #13
IRSmart
Registered User
2011 MK Compass 
 
Join Date: Feb 2011
Location: Westminster, MD
Posts: 1,047
Quote:
Originally Posted by Golfin8 View Post
Sell it yourself, and getting $28-30k should be no problem, and you might hold out for more. There's got to be at least a dozen other people out there who think Chrysler Pick-Up Jeeps are cool.
right, but the problem there lies in the fact that all of those 12 people are most likely more intelligent, realizing that this car's value sinks faster than amy winehouse at the dining room table after a few bumps of coke. they'll want the car for nothing.
IRSmart is offline   Reply With Quote
Unread 12-22-2012, 08:26 AM   #14
CJ7-Tim
Real Jeeps have dents.
 
CJ7-Tim's Avatar
2000 XJ Cherokee 
 
Join Date: Apr 2002
Location: out in the garage - Minneapolis, Minnesota
Posts: 20,720
xhemix
2w3.jpg

CJ7-Tim is offline   Reply With Quote
Unread 12-25-2012, 09:37 AM   #15
JACKAL0PE
Registered User
2000 TJ Wrangler 
 
Join Date: Apr 2012
Location: Roswell, Georgia
Posts: 137
One thing that people just constantly seem to forget or seem to ignore is that "sold at dealership" is not the same as "factory OEM".

Anybody remember the old "Firehawk" mods they used to do to Pontiac Firebirds? Great mods. Some had superchargers, custom wheels, some bodywork, all kinds of neat stuff. But these packages were expensive. They added some $4,000 - $5,000 to the new cost of the car. Today, if you can get anything extra at all for these mods it's unusual. Most seem to be viewe as non-stock modifications that lower the value of the car.

In this particular case, we're talking about an unknown vendor cutting the frame of a vehicle and then welding it back together. If I were to see such an expensive Jeep out there for sale after only being owned for two months, I'd conclude that the vendor did indeed not know what they were doing and had screwed up the install. Why else would someone be trying to sell a $48,000 vehicle after only two months?

I have to say, I find it difficult to accept that someone is bright and intelligent enough to make the money (or have the credit) to purchase a 2011 Challenger SRT8, then a $48K Jeep and just has no conception what "depreciation" is. I find it even more difficult to accept that someone would buy that 2011 Challenger SRT8, be unable to get the ECU codes and then turn around and buy another car from the same manufacturer. Who does that?
JACKAL0PE is offline   Reply With Quote




Jeep, Wrangler, Cherokee, Grand Cherokee, and other models are copyrighted and trademarked to Jeep/Chrysler Corporation. JeepForum.com is not in any way associated with Jeep or the Chrysler Corp.