Do Jeep Grand Cherokees Hold Their Value? The Surprising Truth

do jeep grand cherokees hold their value

The short answer is – yes, Jeep Grand Cherokees tend to hold their value incredibly well compared to other vehicles in their class. This rugged yet refined SUV has earned a reputation for retaining its worth better than most midsize SUVs on the market. In this comprehensive guide, we’ll analyze the Jeep Grand Cherokee’s depreciation rate, compare resale values of different models, look at why these vehicles retain such high value, and provide tips for getting top dollar when selling your Grand Cherokee.

A Brief Background on Jeep Grand Cherokee Models

First introduced in 1993, the Jeep Grand Cherokee is one of the most iconic American SUVs ever made. Now in its fifth generation, this midsize SUV continues to be a top seller thanks to its balance of impressive off-road capability, available luxury features, and powerful engine options including the famed 5.7L V8 Hemi.

Grand Cherokee models range from the well-equipped Laredo and Limited trims to the luxurious Summit with premium materials and technology. The high-performance SRT model boasts a 6.4L V8 pumping out 475 horsepower. With this diverse lineup of Grand Cherokee SUVs spanning workhorse to luxury cruiser, it’s no wonder they have carved out such a respected reputation among SUV enthusiasts.

Depreciation Rate of Jeep Grand Cherokees

So how well do Jeep Grand Cherokees hold their value after purchase? The answer is very impressively compared to other vehicles in their competitive set. We’ll analyze Grand Cherokee depreciation using data from leading vehicle valuation resources.

According to J.D. Power resale value rankings, the Jeep Grand Cherokee depreciates at a rate of 45% after 5 years. This means it retains around 55% of its original purchase price. The vehicle research firm iSeeCars found the Grand Cherokee to have a slightly lower but still favorable depreciation rate of 49.6% after 5 years.

How does this compare against other midsize SUVs? The Ford Explorer saw higher depreciation of 53% while the Toyota 4Runner, another capable off-roader, depreciated at 51%. The Grand Cherokee clearly leads the pack when it comes to retaining its value.

Looking at individual Jeep Grand Cherokee models, the high-performance SRT stands out with extremely impressive depreciation of just 35% over 5 years. That’s nearly 20% better than an average Grand Cherokee. The luxurious Summit and Overland models also beat the average with around 40% depreciation.

Which Grand Cherokee Models Hold Value the Best?

We’ve established that Jeep Grand Cherokees hold their value surprisingly well, but which specific models retain the highest value after years of ownership? Here are the Grand Cherokee trims ranked by resale value:

1. SRT – The undisputed resale value champ, this high-octane performance model loses only 35% after 5 years. Its beastly 6.4L V8 ensures thrilling power that fans are willing to pay for down the road.

2. Summit – This ultra-luxury Grand Cherokee offers every premium feature imaginable from massaging leather seats to 19-speaker audio. Its appealing amenities lead to depreciation of around 40%.

3. Overland – With plush leather and the 360hp V8 Hemi, the upscale Overland retains a respectable 42% value after 5 years.

4. Limited – The popular Limited strikes a balance between features and affordability. This volume seller depreciates at 45% over 5 years.

5. Laredo – As the most affordable Grand Cherokee trim, the Laredo experiences higher than average depreciation of approximately 50% in 5 years. But that’s still excellent compared to competitors.

Beyond trim levels, there are a few other factors that influence which Grand Cherokee models best hold their value:

  • Newer models – The latest generation Grand Cherokee (WK2) retains value better than previous generations, thanks to improved reliability and the latest features.
  • V8 engines – Grand Cherokees equipped with the 5.7L or 6.4L V8 tend to command around 10% higher resale values than comparable V6 models.
  • Well-equipped – Opting for packages like the Luxury Group, Off-Road Group, and Towing Group can boost resale value.
  • Color – Mainstream colors like black, white, and silver have slightly higher resale value than bright colors that go in and out of style.

Why Do Jeep Grand Cherokees Retain Value So Well?

It’s clear that Jeep Grand Cherokees consistently retain their value better than other vehicles in the competitive midsize SUV segment. But why is that the case? There are several important factors that contribute to a Grand Cherokee’s impressively slow depreciation:

  • Strong Jeep brand recognition – As one of the most iconic American SUV brands, Jeep has cultivated excellent brand awareness and loyalty amongst off-roading enthusiasts. This gives the Grand Cherokee a leg up.
  • Better than average reliability – Grand Cherokees have achieved average to above-average predicted reliability scores from J.D. Power and Consumer Reports, instilling confidence in long-term ownership.
  • Capable performance – Available 5.7L and 6.4L V8 engines give drivers exhilarating power, plus the Grand Cherokee is a serious off-roader and can tow up to 7,200 lbs.
  • Upscale features – Loaded Summit models coddle occupants in Nappa leather with massaging seats, open-pore wood trim, and other upscale amenities not often found at this price point.
  • Strong safety ratings – A 2021 Top Safety Pick+ rating from the IIHS demonstrates this Jeep’s excellent crash protection for peace of mind.

When you combine the Grand Cherokee’s prestige badge, brawny performance, comfortable interior, and suite of advanced technology and safety features, it’s easy to see why buyers are willing to pay a premium for these SUVs even years after initial purchase. The Grand Cherokee simply offers an appealing blend of capability, luxury, and value.

How Mileage Impacts a Grand Cherokee’s Resale Value?

One of the biggest factors that can make or break the resale value of any vehicle is its mileage at time of sale. How does accumulated mileage impact the value of a Jeep Grand Cherokee?

Grand Cherokees with over 100,000 miles on the odometer lose value very rapidly. Kelley Blue Book lists a 2015 Grand Cherokee Overland with 108,000 miles at just 35% of its original MSRP. Once mileage creeps into six-figures, condition becomes more important than specific trim or packages.

Ideally, selling a Grand Cherokee with fewer than 60,000 miles will maximize resale value. For example, a 2018 Grand Cherokee Limited with only 42,000 miles retains around 64% according to KBB. That’s nearly 20% higher value for the lower mileage example.

However, there are exceptions to high mileage hurting value, especially for performance models like the SRT. These beasts are bought to be driven hard, so a higher mileage SRT with 80,000+ miles will still command good money if properly maintained. But for most Grand Cherokee models, sticking to highway mileage will pay off when it comes time to sell.

Tips for Maximizing Your Grand Cherokee’s Resale Value

If you want to get top dollar when selling your beloved Jeep Grand Cherokee, here are some tips to preserve as much value as possible:

  • Keep up on maintenance – Follow the factory maintenance schedule, keep records of service, and address any issues promptly to prove it’s been well cared for.
  • Keep mileage reasonable – As we discussed earlier, selling before the odometer hits six digits will maximize what buyers are willing to pay.
  • Wash regularly – Keeping your Grand Cherokee’s exterior and interior clean shows you cared for the vehicle.
  • Keep modifications tasteful – Larger wheels, all-terrain tires and a subtle lift kit can help value, but extensive mods and off-road damage can hurt.
  • Repair any damage – Fix dents, scratches, rock chips, worn seats, and other flaws to avoid deductions from buyers.
  • Sell private party – You can get thousands more selling privately instead of trading in at the dealer.
  • Sell after new model release -TIMING TIP- When the next generation Grand Cherokee is released in late 2023, values of the outgoing model could dip slightly. Take advantage by selling now.

Following these tips throughout your ownership and properly preparing the vehicle before sale can help maximize the money in your pocket when it comes time to trade up to your next adventure-mobile.

In Conclusion

The Jeep Grand Cherokee consistently earns its reputation for retaining value better than most competitors in the hotly contested midsize SUV segment. Strong brand appeal, excellent reliability ratings, serious off-road credentials, and available luxury amenities contribute to Grand Cherokee’s slower than average depreciation.

While the high-performance SRT model leads the pack with an incredible 65% value retention after 5 years, even the most affordable Laredo trim beats out rivals with around 50% remaining. For those looking to get the most for their money down the road, the Jeep Grand Cherokee is a smart buy. Just be sure to keep mileage reasonable, address any flaws, and sell private party to maximize your Grand Cherokee’s resale value.

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