How Well do Jeep Cherokees Hold their Value?
At Varsity Chrysler, Dodge, and Jeep, we have a soft spot in our hearts for the Jeep Cherokee. If you're looking for a Jeep in Calgary, the Cherokee should definitely be on your shopping list. With head-turning style and best-in-class 4x4 capability, the Cherokee lets you take on the world with you whether you're on the road or off-road. Still, as with any new vehicle purchase, you'll want to consider resale value. With that in mind, how does the Cherokee hold up in the used car market? Is a used Jeep Cherokee a good value proposition? If you buy it new, will it retain its value when it's time for trade-in?
The Cherokee, New and Used
One source lists the Cherokee as the ninth-best selling SUV in Canada out of 110 models that they ranked for 2018, as of October of that year. Clearly the Cherokee strikes a chord with thousands of Canadian SUV shoppers. But you might be concerned that when it comes time to trade a Cherokee, you could be competing with lots of other Cherokee sellers on the used vehicle market. But there are other factors to consider.
Condition and Miles
In trading or selling a used vehicle, condition makes all the difference. Your used Cherokee might have a few scratches and dings from off-road use. These don't reflect on the Cherokee's driveability, since the Cherokee was engineered for off-road driving and its drivetrain and body are well able to withstand rugged terrain. But you might want to touch up the paint or find a paint-less dent removal service to pop out any small dings. And certainly if your Cherokee has low miles for its age, it will be much sought after as an alternative to a new Cherokee, given how popular new Cherokees are.
Options and Trim Packages Increase Resale
Like most Jeep models, the Cherokee is available in a range of trim levels including high-end packages such as the Trailhawk. The higher-end packages are always popular with buyers on the resale market. Consider the Trailhawk: as its name implies, it includes the full range of off-road technologies available for this model. These include skid plates to protect the undercarriage, Selec-Speed Control with Hill Ascent and Hill Descent Control, heavy-duty engine cooling, a 4.083 final drive ratio, off-road aluminum wheels, all-terrain tires, and more. It also features a distinctive appearance package with a black hood stripe and other exterior accents. Yet the Trailhawk package starts at only $33,059, barely six thousand more than the base front-wheel drive Sport trim level. Trailhawk models will always be desirable on the used-car market, and it may well be worth paying for this trim level with an eye toward higher resale value down the road.
Trading vs. Private Sale
Another strategy for maximizing the resale value of your Jeep Cherokee is to sell it via a private sale. According to AutoTrader Canada, a 3-year old Jeep Cherokee Trailhawk with 50,000 km in excellent condition would be worth about $24,400 if traded at a dealership but up to $28,000 if sold via private sale--almost 84 percent of its value when new. It might well be worth your time and effort to sell your Cherokee yourself and use the proceeds toward your next vehicle purchase.