Is the Gladiator a bad investment

[Lowcountryearl]

Been buying vehicles for many years but I have never had a vehicle loose so much value in a short amount of time. Was thinking...about going back to a RAM however, most dealers are only offering me 44k for my 2021 Rubicon which is loaded. MSRP of 63k May of 2021, I paid 56k. 12k in 16 months? It's very consistent through the dealers, KBB instant cash, CarMax, Auto Nation and Edmunds etc.
I bought the Gladiator thinking it would hold it's value but at this point, seems I was seriously mistaken. Is this the same in your area?

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[WILDHOBO]

If they stop making them in ‘25 or ‘26 due to electrification of the new models, we’ll all see our values skyrocket, at least in my opinion.

 

[Gvsukids]

Been buying vehicles for many years but I have never had a vehicle loose so much value in a short amount of time. Was thinking...about going back to a RAM however, most dealers are only offering me 44k for my 2021 Rubicon which is loaded. MSRP of 63k May of 2021, I paid 56k. 12k in 16 months? It's very consistent through the dealers, KBB instant cash, CarMax, Auto Nation and Edmunds etc.
I bought the Gladiator thinking it would hold it's value but at this point, seems I was seriously mistaken. Is this the same in your area?

Recession. The value was higher last year.

https://www.jeepgladiatorforum.com/forum/threads/how-well-are-gladiators-holding-their-value.42578/

https://www.jeepgladiatorforum.com/forum/threads/2022-mojave-trade-in-value.61418/

https://www.jeepgladiatorforum.com/forum/threads/gladiators-gaining-in-value.41914/

https://www.jeepgladiatorforum.com/forum/threads/trade-in-value.40158/

https://www.jeepgladiatorforum.com/forum/threads/my-gladiator-trade-in-value-for-reference.35063/

 

[Dillon]

Buying any new vehicle is a bad INVESTMENT.
I actually don't think that depreciation is that bad considering you bought at the peak of the crazy car market and how it's starting to come down.

 

[Hootbro]

You are just seeing the used market starting to return to somewhat normal times. I say this from having traded my 2020 Gladiator Rubicon for my 2021 and recently again into my 2022 Gladiator. My 2020 Gladiator got me $2k more than I originally paid and my 2021 took a $6K hit on depreciation.

In many places, dealer new inventory is up for Gladiators and the market is way less tight for them in the used market.

Lastly, unless a very boutique and rare low production model, no vehicle is an "investment".

 

[PsyRN]

Maybe it's where you live. I just bought out the lease for my JTR. I think they valued it around $52K, I payed $48K in 2020, MSRP was $56K, the residual was $36K, and it had all the options I wanted because I ordered it that way.

That said, I never bought it as a resale investment. As long as it stayed above the residual, I figure I was getting a good deal in the end.

 

[Rahkmalla]

You're not used to vehicles losing 12k worth of value in a year? I'm sorry that doesn't jive. Most people know the old adage that new cars "lose a third of their value when you drive them off the lot" and while it's not 100% accurate, it's not that far off.

Pre-"current times" a standard 36 month residual for almost any non-performance vehicle was 48-56%. I don't know gladiator residuals (or if they've been adjusted to match the current market i wouldn't think so because things don't last forever and betting 3 years from now things are still like they are now is a bad bet), but let's guess on the high end. 63k truck with a 56% residual means the mnfr thinks it'd be worth 35.3 in 3 years. You bought it for 56, so thats 20.7k lost in 3 years, and as i'm sure you're aware depreciation is normally the highest up front.

Go buy a 60k infiniti. see what that's worth in a year. Or here's one I have personal experience with: 2015 Kia K900. 66k on the MSRP originally sold in December 2015. I bought it in February 2018 CPO with 30k miles for 26k. 27 months and 30k miles from original in-service and it lost 60% of it's value. (was a great car btw, but no one knew it existed, and those that did know didn't want to spend 66k on a kia)

Or my all-time favorite depreciation rock star: The Maserati Ghibli SQ4. Original MSRP in 2015 was 78k. I was seeing them for sale in early 2018 for 27k with 25-30k miles.

 

[Divided_Wood]

Say it with me: vehicles are not investments.

 

[MajorUrsus]

IMHO... Who cares? I didn't buy the Gladiator for it's resale value. I bought it to build what I want and take it on adventures. Is it a bad "investment"? If you're looking at it from a financial perspective... YES! All new vehicles are bad investments from the financial perspective. If you consider fun, adventure, experiences, events, culture, customization options... then no. It's an EXCELLENT investment.

 

[DailyMoparGuy]

Unless you have a YouTube channel based on offroad vehicles then I’d say yes, terrible investment lol.

 

[PeterGriffin]

Say it with me: vehicles are not investments.

^ This guy (and several others) get it. It's not a Yenko Camaro, Superbird or 428 Super Cobra Jet; it's a Jeep. The massively overinflated values on used vehicles are finally starting to correct after the craziness the last few years...

It's also VERY location dependent. I live in SW AZ where Jeeps/4WD vehicles are high demand and get top dollar. I just sold my '12 Wrangler JK Sport (2-door) that I bought when it was used and just over a year old. Fast forward a DECADE, and over 100K miles...and I sold it for $1K less than I paid for it. Can't make that up. We took exceptionally care of it and it enjoyed a complete suspension and wheel/tire refresh a few years back when I installed all of the take-offs from my brand new JKUR on it so it looked great with a recent complete 2-step paint correction I did on it. Parked it on a self-sell lot and my phone was ringing off the hook. Hated getting rid of it and wouldn't have sold it for what the dealer, CarMax and some other places were offering but I killed it on private party and the new buyer got a near perfect Jeep for a fraction of what a new one would cost...

 

[Bobchadwickga]

While it's 16 months to you, the fact is your vehicle is now two model years old. As someone else said, the average car is not an investment but is a depreciating asset.

 

[Lowcountryearl]

I guess investment was a wrong choice of words
Strange thing is KBB trade in value is 52k yet KBB instant offer is 44k. In the past the dealerships would get close to KBB trade in value but now, they use the instant cash which is basically wholesale. Needless to say, I won't be trading anytime soon.

 

[WILDHOBO]

I guess investment was a wrong choice of words
Strange thing is KBB trade in value is 52k yet KBB instant offer is 44k. In the past the dealerships would get close to KBB trade in value but now, they use the instant cash which is basically wholesale. Needless to say, I won't be trading anytime soon.

I just can’t imagine trading. If I have to do all these upgrades again I’ll scream.

 

[RichDSport]

I haven't looked at the value of mine, but I bought mine with a soft top in a snowstorm and got a pretty good deal after beating up the dealer for a while. I refinanced and told them I don't think I will ever be upside-down on it. The interest rates are hurting the car market even worse than housing. Fortunately for those of us who own, there's still quite a supply shortage. Gas prices coming down should keep the values high enough. I love driving my Jeep and think it's a great vehicle for what it is, so not too worried about it. Wranglers lose almost no value after many years...

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