Everyone knows the moment you drive a car off a new dealer lot, you just cost yourself over $10,000 in depreciation. That rule has been true as long as I can remember.
Now, something else seems to be happening. Fueled by the post pandemic/stimulus money and car shortage, the Jeep Wrangler that I bought last year seems to have appreciatied at significant rate!
As you can see from the chart below., The Jeep that I paid $41,500 for last June is up to about $58K. That’s more than a 35% increase!
I’ve enjoyed the Jeep a great deal, but friends are saying, “you should sell it!”. If, for no other reason, than to say you made money driving a new car for a year! It’s not my daily driver, so I don’t need to immediately replace it with another premium-priced vehicle.
I’m not sure what will happen to prices once the ‘chip shortage’ issues are over. Will used car prices suddenly crash, or will it take the auto manufacturers a couple years to catch up their production?
What would you do? Is the value of your vehicles up so dramatically?
Image Credit: (c) MrFireStation.com