Is it better to buy a 1-year-old vehicle or an 11-year-old vehicle?
This study calculates the buying points for a Jeep Wrangler — from new 2007 models back to model year 1990.
The Buying Points
There are 3 key buying points during this period that appear to provide the best value relative to the depreciation of a Jeep Wrangler.
So, what type of depreciation can expect you expect?
Let’s take a look at models that are less than 6 years old first.
Model Year 2006 – 1st Buying Point
The first buying point occurs when the Jeep is 12-18 months old. The reason for this is high first year depreciation on a new vehicle. The first year depreciation of a new Jeep is about 15%. This means that you will lose approximately 15% of whatever you invest into a new Jeep Wrangler within the first 12 months of purchase.
The depreciation is less than 7% on average over the next 4 years.
Therefore, the best buying point for newer Jeeps is about the time it is 12 months old. The average cost of a 1-year-old Jeep is $21,148.
The average cost per year (average depreciation) of a new Jeep over the first 4 years is $2,139/yr. The average cost of a 1-year-old Jeep over the next 4 years is only $1,303 per year.
That’s a savings of over $3,344 just buy purchasing a 1-year-old Jeep rather than a new one!
