Chances are, everyone has seen a Jeep Wrangler on the roads at one stage or another, regardless of how much they know about cars.
These cars are iconic for many reasons and pretty easily identifiable due to their unique, 'blocky' exterior. Even though these cars have been around for decades, with different variants of the Wrangler model throughout the years, acquiring a used Wrangler is not the cheapest endeavor. Besides being a generally good indicator of quality, cars that hold their value well after leaving the dealership usually have specific reasons for doing so. Typically, cars tend to depreciate anywhere between 10% and 40% in the first year, with the initial loss in value occurring as soon as you drive the new car off the lot. Jeep Wranglers however have an unusually low depreciation, with the lowest depreciation rate out of all vehicles on the market over a five-year period.
Let's discuss the reasons why Jeep Wranglers retain their value so well on the used market, simultaneously looking at the historical icon that the Jeep brand is in American history.
Direct Demand with Minimal Decrease
Before going any further, it is important to look at the history of Jeep to understand why the demand for Jeeps has been pretty significant.
Like all historical reviews, let's start at the beginning, looking at the earliest Jeeps to better understand the conflation of Jeeps with American culture. While their production began in the 1940s, Jeeps became truly significant in World War II as a necessary vehicle of warfare. Their key benefits in warfare were found in their incredible nimbleness and ability to be fitted with a variety of tactical gear, ranging from simple sharpened steel poles mounted at the front of the car, to full out .50 caliber Browning M2 heavy machine guns.
After the success of the Allied Forces in WWII, Jeep slowly became an American icon, all the while spreading throughout the globe. The Wrangler model followed on from the iconic Willy model found in the World War, forming a consistent and reliable option for many decades. The continued presence of such a successful model has helped keep the demand high for Jeeps in general, with the Wrangler in particular, becoming the namesake of Jeep, as one of the most recognized and popular models in history.
Infamous 4WD Prowess Promotes Legendary Status
One of the most important, if not the most important, factors to the Wrangler's rise to fame is its offroad abilities.
The Jeep Wrangler is truly an off-road warrior, offering insane performance on any terrain imaginable. The car itself is basically created for offroad driving, with the newest iteration hosting features like the Rock-Trac® 4x4 System, high air intake, watertight electric seals, high ground clearance, underbody protection, all-terrain tires, and a solid front axle making the Wrangler incredibly reliable and long-lasting. Furthermore, power and torque are impressive from the factory, with the 3.6-Liter V6 producing 280 HP and 260 lb-ft of torque, allowing the Wrangler to get you out of any rut. Additionally, there are a variety of variants to choose from to further tailor the Wrangler to the terrain it will be used on, ranging from mild all the way to wild, with a variety of packages to provide even more customisability.
The potent performance of the Wrangler on terrain of all kinds has given it nothing short of legendary status. Its proven success and reliability further adds to its value, making second-hand models highly desirable as well. The ability of the Wrangler to withstand frequent extreme trail usage without breaking down or wearing out makes it an incredibly valuable car for anyone looking to leave the smoothness of pavement. The combination of its demand, both new and second hand, combined with its 4WD capabilities makes the Wrangler depreciate radically slowly.
Countless Courses for Crazy Customization
Keeping in line with its 4WD potential, another key reason why the Jeep Wrangler is so popular, is the availability, scope, and level of aftermarket upgrade options available.
The Wrangler platform is already a hardcore 4WD, but there is an entire market of aftermarket upgrades to promote its performance capacities even further. This is not to say that the same does not exist for other cars, as we know there are aftermarket options of various kinds ranging from audiophile amplifier-speaker setups to forced induction engine fabrications, but rather that the aftermarket options for 4WDs are significantly greater for Jeep Wranglers than for any other car in its class. There are a variety of aesthetic alterations, comfort-creating changes and mechanical modifications to be made to take the standard Jeep Wrangler and turn it into a fully personalized trail-blazing badass machine. Just look at the eye candy above for some motivation.
So all in, there are a variety of reasons why the Jeep Wrangler depreciates incredibly slowly namely its reputable history, class-leading 4WD performance, and literally endless avenues for aftermarket modifications, making the Jeep Wrangler an incredibly reliable and valuable car, be it new or used.
Sources: HotCars, Jeep, AutoInfluence, and ChryslerCapital