Why are they saying Bronco's resale value is so terrible?

[andrusoid]

Comparing a Wildtrak to an similarly priced Rubicon, they are saying the Bronco will depreciate double the amount of a Wrangler ($27k over 5 years vs $13k)?

I know there's a shortage now and you can sell a used one above MSRP, but I was planning to keep mine long term (5+ years) so now I'm a little concerned.

Before you freak out too much, do a "closed/sold" search on Google. Wildtracks are selling way over list. In 5 years? That's going to be different.

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[Contact]

Comparing a Wildtrak to an similarly priced Rubicon, they are saying the Bronco will depreciate double the amount of a Wrangler ($27k over 5 years vs $13k)?

I know there's a shortage now and you can sell a used one above MSRP, but I was planning to keep mine long term (5+ years) so now I'm a little concerned.

Who are "they"?

 

[gdgraph]

Who is "they"?

https://carbuzz.com/news/ford-bronco-has-better-projected-resale-values-than-jeep-wrangler

https://www.carsdirect.com/deals-articles/2021-ford-bronco-residual-values-are-better-than-wrangler#:~:text=At the entry-level, Ford,the Wrangler Unlimited (71%).

the table is Edmunds True cost to own, and most of their other estimates have been spot on, at least for every other car I’ve owned.

that second link from carsdirect corroborates edmunds estimate. The table for a 4door Wildtrak says it will retain 57% after 4 years, for a $57k MSRP that’s $24k in depreciation, edmunds numbers are for 5 years so it’s pretty close.

 

[granger]

The quick answer is they have no idea. That being said, wranglers hold their value. I paid 30.3K for my 2014 wrangler sport. Added a lift, 35” tires, upgraded speakers, and a Stinger head unit. Let’s call it $7K of upgrades, and I have an offer for $31K for my Jeep with 33K miles on it. That is crazy for an 8 yr old Jeep.

 

[Efthreeoh]

Yeah, except I've never paid $50,000+ for a bed, a refrigerator, pots, pans, utensils, or a TV, and never paid MSRP.

But that's not the point.

 

[BigMeatsBronco]

I think the FEs will hold their value the most...but I own one so I'm biased...

 

[BigMeatsBronco]

The quick answer is they have no idea. That being said, wranglers hold their value. I paid 30.3K for my 2014 wrangler sport. Added a lift, 35” tires, upgraded speakers, and a Stinger head unit. Let’s call it $7K of upgrades, and I have an offer for $31K for my Jeep with 33K miles on it. That is crazy for an 8 yr old Jeep.

That's not surprising, miles mean EVERYTHING when it come to resale value.

 

[SuperDave150]

Ummm, are you buying this the vehicle to sell, or to drive?

From a financial perspective, the best strategy is to drive a vehicle until the wheels fall off. Buying & selling becomes a sinkhole of funds; even if you can sell it for what you bought it for there are still losses due to taxes, registration, inflation, etc.

 

[aFordOwner]

Because “they” are idiots

 

[slycat67]

Comparing a Wildtrak to an similarly priced Rubicon, they are saying the Bronco will depreciate double the amount of a Wrangler ($27k over 5 years vs $13k)?

I know there's a shortage now and you can sell a used one above MSRP, but I was planning to keep mine long term (5+ years) so now I'm a little concerned.

I’m just got back from Off Roadeo. If these things hold up over time, jeep is in huge trouble and I bet they are not sleeping well…

 

[Jjt24]

They probably thought the Bronco sport was a Bronco and did their calculations off of that.

 

[heynow14]

The economics that would come into play are completely unknown at this point. As of right now, the supply/demand for broncos are 3 standard deviations from anything that current exists at Ford. Applying the same metrics as a ford edge or even an F150 are nonsensical, at best.

Immediate-term crazy demand coupled with COVID supply chain madness will not impact long term (5 years out) availability and thus future values of a mass-produced vehicle like Bronco. This pricing fervor will die down and when it does, we will look back at this current situation and realize that this vehicle and it's value is no different than any other. People who think Bronco will be 'collectible' and highly prized because of the insane valuations we see today are deluded or just never took basic Econ in high school.

 

[Tunagates]

Immediate-term crazy demand coupled with COVID supply chain madness will not impact long term (5 years out) availability and thus future values of a mass-produced vehicle like Bronco. This pricing fervor will die down and when it does, we will look back at this current situation and realize that this vehicle and it's value is no different than any other. People who think Bronco will be 'collectible' and highly prized because of the insane valuations we see today are deluded or just never took basic Econ in high school.

You dont even need high school econ to understand basic supply/demand. That being said, i was an econ major and its my profession so I have a good grasp on supply/demand. 2021 is over - there will be no more 2021 Broncos produced, period, and the FE production is even less than the 7k allotment. The 2021 Bronco, and many other cars in 2021, will have significant tailwinds when it comes to resale value.

 

[shieldsy]

Because “they” are idiots

“They” always seem to have a lot to say.

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