We love the Jeep Wrangler because it opens up hobbies and lifestyles that other SUVs don’t offer, but why are Jeep wranglers so expensive? Well, we take a look at what is making the Jeep Wrangler prices skyrocket over the past few years.
Jeep is a reliable brand that has made a name for itself, since the first military Jeep wrangler in the year 1941, Jeep has remained one of the most iconic SUVs in the market, and we have embraced it as an extension of our personality as we shift to the more outdoor type of people who love adventure.
For these reasons, Jeep expanded to the civilian car market and has 12 different trim and configurations of the Jeep Wrangler, we love them for their off-road capabilities, rugged look, and their inspiring sense of nature, this is without compromises such as poor fuel economy, horrible handling capabilities, and expensive aftermarket parts and accessories, despite this factors, Jeep Wrangler prices are over the roof today whether you are buying a brand new Jeep Wrangler or a used Jeep Wrangler.
So, why are Jeep Wranglers so expensive?
Jeep Wranglers are so expensive because the demand outstrips the supply, value-added on used Jeep Wranglers creates a high resale value, and lastly, Jeep Wranglers have an emotional attachment as an extension of our personality creating an emotional value.
Why are new Jeep Wranglers so expensive?
To explain what is happening to the prices of new Jeep Wranglers, we have designed a simple infographics image below that explains the current rising of new Jeep wrangler prices in economical terms of demand and supply.
From the infographics image above, the demand for Jeeps is rising (1), the demand for Jeeps is attributed to the changing lifestyle of Americans who are now more adventurous than before, on an article published by the New York Post 76% of Americans consider themselves adventurous, Jeep targets this market segment with their lineup of Jeep wrangler models.
However, there is a shift in the supply of the quantity Jeep can produce to meet this demand as illustrated in the infographic arrow (2), this is because of the shortage of vehicle manufacturing parts the biggest problem being the shortage of microchips, seating foams and plastics which is widespread in the auto industry.
The shortage of vehicle manufacturing parts has caused a rise in the cost of producing Jeeps, (3), at the old prices (4), this has led Jeep to increase the prices of Jeeps (5), to meet the same desired profits and cost of production (6) at a new point of equilibrium (7) where the demand matches the shift of supply.
Now you understand why new Jeep Wranglers are so expensive, but why are Jeep Wranglers so expensive when used?
Why are used Jeep Wranglers so expensive?
We did conduct a Survey as shown in the table below, we grouped our Jeep Wranglers’ owners in buckets of 10 people who own a specific Jeep Wrangler Model (e.g., 10 People who own a Jeep Wrangler Sahara, 10 People who own a Jeep Wrangler Rubicon, etc.), and the following were the results that helped us get right to the answer of why are Jeep Wranglers so expensive when used:
|Jeep Wrangler model You Own||MSRP||How much would you sell your Jeep||Why that selling Price|
|60% Would sell their Jeep 40%+ more than they bought it||Jeep Wrangler Sahara||$39,715||40% More than the MSRP||Customization features|
|70% Would sell their Jeep 35%+ more than they bought it||Jeep Wrangler Rubicon||$43,265||35% More than the MSRP||Customization features|
|57% Would sell their Jeep 25%+ more than they bought it||Jeep Wrangler High Tide||$50,835||25% More than the MSRP||Customization features|
|55% Would sell their Jeep 20%+ more than they bought it||Jeep Wrangler Willys||$39,865||20% More than the MSRP||Customization features|
|55% Would sell their Jeep 20%+ more than they bought it||Jeep Wrangler High Tide||$50,835||20% More than the MSRP||Customization features|
|50% Would sell their Jeep 20%+ more than they bought it||Jeep Wrangler Sahara Attitude||$38,010||20% More than the MSRP||Customization features|
|65% Would sell their Jeep 10%+ more than they bought it||Jeep Wrangler Sport||$32,570||10% More than the MSRP||Emotional Value|
|50% Would sell their Jeep 10%+ more than they bought it||Jeep Wrangler Sport S||$36,765||10% More than the MSRP||Emotional Value|
|50% Would sell their Jeep 5%+ more than they bought it||Jeep Wrangler Sport Attitude||$38,010||5% More than the MSRP||Emotional Value|
|65% Would sell their Jeep 5%+ more than they bought it||Jeep Wrangler Willys||$39,865||5% More than the MSRP||Emotional Value|
|60% Would sell their Jeep 9%+ less than they bought it||Jeep Wrangler Sahara Attitude||$43,310||9% lower than the MSRP||Depreciation Value|
|60% Would sell their Jeep 9%+ less than they bought it||Jeep Wrangler High Attitude||$51,375||9% lower than the MSRP||Depreciation Value|
According to car buzz, Jeep Wranglers are one of the most customized SUVs in the world, we did our research on the costs of customizing a Jeep wrangler and the figures were way above the MSRP of new Jeeps. Owners of Jeep Rubicons and Sahara’s have highly customized their Jeep wranglers because they are the most desirable Jeep models for off-roading, this has increased their used prizes when customized, it’s very hard to find a Jeep Rubicon or Sahara that is not customized.
The costs of used Jeeps parts for customization have also risen through the roof, as OEM parts are more preferred by Jeep owners who don’t want to void their Jeeps warranty. This answers the question of why are Jeep Wranglers so expensive in the used auto market.
We should also consider the fact that Jeep owners have emotional attachments to their Jeeps, this is common in Jeep trims and configurations that are tailored to meet the daily driver, such as the Jeep Wrangler sports, and Willy’s lineup that is tailored to meet the lifestyle demands of their users, these models are more comfortable from the factory as they sacrifice on off-roading Jeep parts to suit the daily driving experience of Jeeps, and they are the favorite of families cars just because they are comfortable.
It’s important to mention that Jeeps hold their value very well, because Jeep Wranglers hold their value very well, due to their low depreciation value of 9.2% compared to other SUVs. Jeepers are high-income earners, and for these reasons, they understand and buy Jeeps as assets and consider them as an investment, for example, a more expensive Jeep Wrangler High attitude retails at an MSRP of $51,375, and its depreciation after five years is only 9.2 percentage, meaning that they will only lose $4,726 of their MSRP, retailing at $46,649.
Now you understand why are Jeep wranglers so expensive.
Buying a brand new Jeep Wrangler is expensive, this is due to the rising costs of production and the shortage of manufacturing parts, the cost of a used Jeep is also expensive because of the customization of Jeeps, the emotional attachment of Jeepers to their Jeep wranglers, and the low depreciation of Jeeps at 9.2% compared to other SUVs.
Here is a video explaining the prices of various used Jeep Wranglers, and an explanation of why are Jeep Wranglers so expensive based on upgraded features, miles, tires, aftermarket parts, etc: