With all of the data the PriceHub community has been contributing to the site, I wanted to use this data to showcase some of the differences between the resale values of a notoriously bad resale car (Jeep Grand Cherokee) and a historically good resale car (Porsche 911).
Instead of putting numbers and calculations here, I have pasted graphs of the average, actual sales prices for each car for the past several years. Here is the graph for the Jeep Grand Cherokee - note the steep decline from 2008. The average selling price drops quite significantly as the car gets older. According to the graph, if you buy a Jeep Grand Cherokee and sell it after a year or two, you can expect to recoup a fraction of what you paid for it.
Now take a look at the average, actual sale prices for the Porsche 911. While the average selling price does drop initially, you can see that the 911 has a floor price somewhere around $22K, regardless of year. For the Grand Cherokee, the actual values continue to drop with no end in sight.
While my analysis isn't scientific by any stretch, it is interesting to compare the average actual price charts for different cars. I'll admit that it may not be completely fair for me to compare an iconic sports car to a poorly made American SUV.
I doubt that this data will stop you from buying a poor resale car - but it may help to set your expectations properly when you goto sell your car in the future.
Wednesday, August 6, 2008
Resale value: Jeep Grand Cherokee vs. Porsche 911
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4 comments:
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Interesting, it's like comparing a Ferrari to a Toyota carolla. The jeep is a very reliable and affordable family vehicle that can go anywhere, the carolla is a decent car which is a reliable and efficient family vehicle. Both don't cost much to repair... Now the porsha and Ferrari both Great performance cars. Neither efficient nor practical, these are vehicles for people with lots of money, and not very reliable and cost a whole hell of a lot to fix.... Next time compare an Olympic athlete with an olympic athlete and not with a regular person. Might turn out better.
These are two different animals that targets two complete different groups. A GC is a family vehicle and users care about reliability. They would not spend tons of money to maintain and therefore the price drops endlessly with age. In the opposite, a 911 is a exotic car and most likely be owned and transferred by car lovers and collectors. They do not view the cost to maintain the car at the same as the situation of a GC. Nevertheless, the article just tells something we all know and there is no true value to use this conclusion next time when you want to shop a car. Will you get a 911 because it retains its value as your primary car, if you live in the north with a lot of snow and have kids to take?
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