Pricing/depreciation on 2024 models versus massively discounted 2023 models

[BlackRuby23]

Why would somebody buy a 2024 when they could buy a 2023 for a discount of almost $20k versus the 2024? Further, what happens to the value of the 2024 when you drive it off the lot? Because since the massive discounts of the 2023 models have bled into their used value, it would seem that there is no way the 2024 couldn't be set up for the same massive depreciation scale. Just wondering aloud.

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[bleda2002]

2024 was a mid-cycle refresh with a new interior, and some modest upgrades. The 2023 price will definitely influence the 24 price, but the 24 is also available 7-8% under invoice so it's not as huge of a gap as you think.

You are also thinking short term, once the 23 fire sale is over and prices stabilize you will just have people in 23s with excellent value much like the folks that bought early COVID when the prices were low.

 

[ShadowsPapa]

Why would somebody buy a 2024 when they could buy a 2023 for a discount of almost $20k versus the 2024? Further, what happens to the value of the 2024 when you drive it off the lot? Because since the massive discounts of the 2023 models have bled into their used value, it would seem that there is no way the 2024 couldn't be set up for the same massive depreciation scale. Just wondering aloud.

From my perspective/point of view:
Why would I trade a 2022 for a 2023 when there are zero differences - and just go one model year newer (can't get Overland in 2023 anyway so that would mean a jump to another level)
The 2024 offers things you can't get in 2023, different combinations, and safety features not in the 2023 models. (Jeep says "and other safety enhancements" along with the added side air bags)

For someone buying for the first time or outright, their perspective will be very different - they may want to get into Gladiator at any level cheaper, but new. So a 2023 may make sense to them. Others may want the added safety and features that are only in 2024 and not 2023 models.

2024 was a mid-cycle refresh with a new interior

I'm obviously missing something or not thinking of something here - other than the X levels - what new interior? Unless you mean the big screen?
That's all I see different with the interior - big screen, added air bags so you can't use your roll bar sunglasses bags and such.

 

[BlackRuby23]

2024 was a mid-cycle refresh with a new interior, and some modest upgrades. The 2023 price will definitely influence the 24 price, but the 24 is also available 7-8% under invoice so it's not as huge of a gap as you think.

You are also thinking short term, once the 23 fire sale is over and prices stabilize you will just have people in 23s with excellent value much like the folks that bought early COVID when the prices were low.

Most people don't know that you can buy them under invoice. I only learned that from the Wrangler forum when I was looking at them. Most people do not pay under invoice, and most dealers do not offer that pricing.

I think Stellantis has a huge pricing problem on their hands. What I anticipate happening is extremely low sales for the 2024 Gladiator, just like last year, and either limited production or massive discounts at the end of the year to try to mitigate the issue and limit inventory problems.

 

[MaximusTX]

If the diesel was offered in the 24 model I would pick up a 24 for the updated features but then again I always like to have the newest tech. You can find good deals on a 24 model if you look around. My local dealership is already discounting the 24 models almost $3k under MSRP.

 

[ShadowsPapa]

Most people do not pay under invoice, and most dealers do not offer that pricing.

VERY true. Around here, ain't gonna happen unless you have nothing to trade in. If you have a trade, they'll offset that below invoice with low trade offer.
I chatted with a dealer here and those offering such low, deep discounts are losing money in some cases just to increase their advantages with Jeep. We talked percentages and real money and at 6% they are pretty much just covering costs - lower than that, it's a loss unless they get a cheap trade to sell at decent profit. They are doing it to sell numbers and gain priority with Jeep.

What I anticipate happening is extremely low sales for the 2024 Gladiator, just like last year, and either limited production or massive discounts

24s are selling quickly around here. If you see one you like, grab it. Our dealer has already turned over some 24s they just got in a month ago. They just aren't sitting around, not here, anyway.
Part of the reason may be - there are hardly any 23s around for them to sell - used is skimpy, 23s all but gone. The discounts cleared the 23s off the lots around here. So if you want a Gladiator, you buy from the few 24s out there or order one.

 

[Aj58]

Me honestly I don’t see such big discounts at the end of year. Like every other year there will be discounts, but this year they really just needed to clear the 23’s for the 24’s which is a reason. For the big discounts.

while the prices of 24’s are up there, if you are looking for an apples to apples in terms of installed features, the higher end 24’s (x models)will be cheaper than an equivalent 23 from a MSRP to MSRP. In terms of depreciation, this happens all the time a new model comes out. Doesn’t matter if it’s a cycle upgrade or mid cycle upgrade the older models will depreciate more than the newer.

 

[BlackRuby23]

If the diesel was offered in the 24 model I would pick up a 24 for the updated features but then again I always like to have the newest tech. You can find good deals on a 24 model if you look around. My local dealership is already discounting the 24 models almost $3k under MSRP.

Even with the discounts, those prices are bananas. My '23 Rubicon was $46k before tt&l. And I have already taken a bath on depreciation at that price. I think the auto market is set for a biblical price adjustment, both new and used.

 

[MaximusTX]

Even with the discounts, those prices are bananas. My '23 Rubicon was $46k before tt&l. And I have already taken a bath on depreciation at that price. I think the auto market is set for a biblical price adjustment, both new and used.

I didn't say the prices were good. I was just saying you can find them at a discount if you looked. Not sure how you took a bath on your Gladiator. KBB on a standard 23 Rubicon with 15K miles is between $42K-$48K for a private sell and $39K-$44K for trade-in and you paid $46K before TT&L. That's not too far off. Any new car is going to lose about 8% as soon as you drive it off the lot which puts your Rubicon you purchased at $46K right at about $42K day one which is normal.

 

[ShadowsPapa]

Me honestly I don’t see such big discounts at the end of year. Like every other year there will be discounts, but this year they really just needed to clear the 23’s for the 24’s which is a reason. For the big discounts.

while the prices of 24’s are up there, if you are looking for an apples to apples in terms of installed features, the higher end 24’s (x models)will be cheaper than an equivalent 23 from a MSRP to MSRP. In terms of depreciation, this happens all the time a new model comes out. Doesn’t matter if it’s a cycle upgrade or mid cycle upgrade the older models will depreciate more than the newer.

I took the MSRP of my 2022 Overland and added the "features" of a Mojave, tried to figure in the power seats, value of the bigger screen and so on, and came out figuring that a Mojave X MSRP is actually cheaper than a 2022 Overland MSRP.
Figure the power seats, wider axles, bigger radio, rear locker, Fox shocks and add that stuff to a 2022 Overland and you end up higher than the MSRP of a 2024 Mojave.
It looks a lot worse because of how things are packaged, but you really get more for the same or lower cost in the end. They just force you into the high end stuff to get some things.

My Overland MSRP was something like 61,xxx
A Mojave X MSRP with the same features is about 69,xxx
Figure that's roughly 8,000 difference, but you get the Mojave X stuff.
With inflation, a 2022 Overland in 2024 would easily be a couple grand higher than the MSRP was in 2022. So figure my exact truck in 2024 would be MSRP of around 63,000 compared to the 61 it was in 2022. That drops the difference down even more.

 

[Aj58]

I took the MSRP of my 2022 Overland and added the "features" of a Mojave, tried to figure in the power seats, value of the bigger screen and so on, and came out figuring that a Mojave X MSRP is actually cheaper than a 2022 Overland MSRP.
Figure the power seats, wider axles, bigger radio, rear locker, Fox shocks and add that stuff to a 2022 Overland and you end up higher than the MSRP of a 2024 Mojave.
It looks a lot worse because of how things are packaged, but you really get more for the same or lower cost in the end. They just force you into the high end stuff to get some things.

My Overland MSRP was something like 61,xxx
A Mojave X MSRP with the same features is about 69,xxx
Figure that's roughly 8,000 difference, but you get the Mojave X stuff.
With inflation, a 2022 Overland in 2024 would easily be a couple grand higher than the MSRP was in 2022. So figure my exact truck in 2024 would be MSRP of around 63,000 compared to the 61 it was in 2022. That drops the difference down even more.

?

I forget the exact numbers because it’s been a bit but… I took all of the options that made a Mojave X a Mojave X and bolted what I could onto a 23 and the 24 mojave X had a lower MSRP than a 23 with all the options. And the reality of it is, even for 23’s it was hard if not impossible to find some of those options, like selec trac.

it’s not everyone’s cup of tea with the optioning but at those trims it’s not that far off from a 23 and you do get some fun stuff.

 

[JKenTex]

If the diesel was offered in the 24 model I would pick up a 24 for the updated features but then again I always like to have the newest tech. You can find good deals on a 24 model if you look around. My local dealership is already discounting the 24 models almost $3k under MSRP.

Looks like you're in the San Antonio area?

Here in DFW dealers adjusting prices as soon as they land on the lot, by 7%-10% advertised.

That's still hard to understand considering pricing from 2020 to today, and comparing just about any other manufacture.

The Mojave X though, I'd probably have already signed the check, but after seeing what they did to clear some of the '23 inventory, way late release of '24's, what's it going to be like in 6 months?

My wife is already shaking her head because she knows, if I could grab one for $50k, I'd have $10K+ going into "all the things missing" and she doesn't see it starting day 1. For now, I'm waiting....even starting to consider going another route, in order to get the proper power they should have.

 

[MaximusTX]

Looks like you're in the San Antonio area?

Here in DFW dealers adjusting prices as soon as they land on the lot, by 7%-10% advertised.

That's still hard to understand considering pricing from 2020 to today, and comparing just about any other manufacture.

The Mojave X though, I'd probably have already signed the check, but after seeing what they did to clear some of the '23 inventory, way late release of '24's, what's it going to be like in 6 months?

My wife is already shaking her head because she knows, if I could grab one for $50k, I'd have $10K+ going into "all the things missing" and she doesn't see it starting day 1. For now, I'm waiting....even starting to consider going another route, in order to get the proper power they should have.

Yeah, I am down in the San Antonio Area. I have been looking at trading in my gasser for a diesel but I have to wait for a couple things to happen first and in that time all the highly optioned diesel have pretty much been sold. There are still a couple left but none have all the features I was looking for.

 

[Janster]

We wanted the 2024 for a variety of reasons..... and wanting all the bells & whistles over what the 23 had. Most everything the Mojave X has - is above and beyond the options that I had in my 2016 Canyon (which we traded). We've worked hard over our lifetime and are 'comfortable' to afford it.

We negotiated back-n-forth for a couple days and came to an agreement and we never looked back. Enjoying every minute of it and no regrets!

 

[TheDerb]

Even with the discounts, those prices are bananas. My '23 Rubicon was $46k before tt&l. And I have already taken a bath on depreciation at that price. I think the auto market is set for a biblical price adjustment, both new and used.

I don't know if it's fair to say you've "taken a bath" on depreciation. You have to consider that there is a certain price threshold that, once met, will increase demand regardless of supply. Any reasonable person looking for a capable truck such as a Gladiator Rubicon will know that once you hit high $30's (even for a used model) you are getting a steal. So, your real depreciation/ possible "loss" is only going to be whatever you owe on top of that. And sure, within the last 4 years things have changed a lot, but trucks lose value. Selling a $60k MSRP truck for more than you owe on it after a year of ownership is not a bad deal at all.

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