Why these XJs depreciate so much so fast?
#1
#2
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Dochands (04-23-2018)
#3
All new Jaguars depreciate fast. Always have done, always will do.
As the electronics become ever more complex, and the technology more rapidly outdated, this will only hasten the drop as used car buyers justifiably worry about the potentials bills if (when) something goes wrong.
However, as John says in post #2, this is by no means a Jaguar only phenomenon.
Graham
As the electronics become ever more complex, and the technology more rapidly outdated, this will only hasten the drop as used car buyers justifiably worry about the potentials bills if (when) something goes wrong.
However, as John says in post #2, this is by no means a Jaguar only phenomenon.
Graham
#4
Back in the day by buddy got the most beautiful green over tan jag for 2,500 when we were In high school. Not sure the model but it was the big 4 door, No one could believe he got it at that price. Looked brand new. Like a 50k car, It was amazing. Except after a few weeks the breakdowns/repairs kicked in and I don't think it ever at ran again within a few months, That same scenario happens to a lot of people and while jags are slightly better now. That scare of repair is what drives down the resale. I myself have a 2011 XJL Supercharged with blacked out grills, carbon fiber and illumination, 60k miles on its 2nd motor, I bought it with a blown motor as a project, but only budgeted for a motor swap, not also a window regulator, blown door speakers. Sunroof shade parts, seat switches, suspension noises, sticky buttons, Lots of little things, but still. Now the ac is making a rattling/buzzing noise drives my wife nuts. And the sunroof is still popping, Still the most beautiful car on the road, but at least mine is a money pit. I enjoy projects, but I'm thinking of selling once it's totally sorted as the worry of this continuing and me spending more than I can get. I do all kinds of projects from old Jeep restores, to 911 salvage accident cars, to mechanic specials mother swaps, etc. and I think this will be the first one I lose money on. I'd have to get 30 to get out whole, and even with less than 1,000 miles on a new 2016 motor, r wheels, new brakes, and 2016 lights. I don't think I'd ever find a buyer at 30, On the flip side, I get lots of comments driving it around, it's a beast to drive, and people think it's brand new, so it will be hard to part with. I haven't decided yet.
And comparatively, I had an old 2003 S class Mercedes, that had about 200k miles when I sold it , and that thing was bulletproof. I don't think it saw a shop for years at a time. I was in college and partying a lot, and just drove it hard everywhere with almost no maintenance. I'm talking Barely even oil changes. And everything worked, no issues, An XJ would blow in a heartbeat under those conditions with that mileage.
And comparatively, I had an old 2003 S class Mercedes, that had about 200k miles when I sold it , and that thing was bulletproof. I don't think it saw a shop for years at a time. I was in college and partying a lot, and just drove it hard everywhere with almost no maintenance. I'm talking Barely even oil changes. And everything worked, no issues, An XJ would blow in a heartbeat under those conditions with that mileage.
#5
as a couple of people mentioned, this is not restricted to Jags, and adding more or better features is not going to curb the depreciation. they do seem to depreciate a little bit faster than other luxury models, but they are all pretty much in the same boat. I was able to purchase an RS6 and later a CLS63 because of the depreciation. The price of the cars is inflated a bit to begin with, plus the perceptions that they are extremely costly to repair, whether that is accurate or not, drive the resale value down.
all of my European luxury cars have been pretty damn reliable. The worst offense was the front air suspension in the CLS. But either way, the 2018s will likely have the same drop in value as the others. Jag tends to keep the XJ bodystyles around for a while. This came out in 09/10 i believe, so my absolute guess is that a completely new model will roll around after 2020.
all of my European luxury cars have been pretty damn reliable. The worst offense was the front air suspension in the CLS. But either way, the 2018s will likely have the same drop in value as the others. Jag tends to keep the XJ bodystyles around for a while. This came out in 09/10 i believe, so my absolute guess is that a completely new model will roll around after 2020.
#6
#7
I think its sad on this form that all of us bought cars that were almost $100k new and will likely not make 100k miles on the original motor.
Your 2018 will be no different and in 4 years you will be lucky to get $30k trade in and if you really drive the wheels off it and enjoy it you will probably get less....
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#8
Well, I don't envy those of you that have suffered the depreciation.
However, I've benefited from it. My 2014 XJL Supercharged stickered just north of $100,000 new. I purchased it this past December (43,000 miles) with a Jaguar CPO warranty until December 14, 2021 for about 60% off it's sticker. Without the depreciation, I'd be a dreamer instead of a driver!
I feel pretty well protected until almost 2022... at which point I'm thinking the car will be worth about $20k. If I can drive this car for 4 years and it costs me just under $25k to enjoy the ride... with the CPO covering my backside... I'm happy I sold my BMW!
However, I've benefited from it. My 2014 XJL Supercharged stickered just north of $100,000 new. I purchased it this past December (43,000 miles) with a Jaguar CPO warranty until December 14, 2021 for about 60% off it's sticker. Without the depreciation, I'd be a dreamer instead of a driver!
I feel pretty well protected until almost 2022... at which point I'm thinking the car will be worth about $20k. If I can drive this car for 4 years and it costs me just under $25k to enjoy the ride... with the CPO covering my backside... I'm happy I sold my BMW!
#9
#10
Big Jags have always suffered mammoth depreciation on both sides of the pond. Go to cars.com in the US and do a search on most large, luxury 4-doors and you will find that many take a thrashing behind the woodshed. The M-B CLS is a prime example with the big BMWs not far behind. Even the latest Maserati Quattroporte gets spanked.
Certain cars still cling to their value, like the S-Class, Porsche Panamera and the Lexus LS, but even then it can be model/trim dependent.
Certain cars still cling to their value, like the S-Class, Porsche Panamera and the Lexus LS, but even then it can be model/trim dependent.
#11
The reason is if you can afford it new, you buy it new. The secondary crowd (most of us) would/could never pay $100k for a car. So it drops to a more reasonable level that we can afford. Even at 1/2 the new price at only 1-2 years old these are hard cars to move. If I had to do it again, I would buy it new and lease for 2 years. I put low mileage on it anyway so it is perfect for a lease. Based on what I could get for mine now, it has cost me around $800/month anyway. I paid $42k in 11/16 and if I am lucky could get $30k right now. Right around what a lease would be!
#12
The reason is if you can afford it new, you buy it new. The secondary crowd (most of us) would/could never pay $100k for a car. So it drops to a more reasonable level that we can afford. Even at 1/2 the new price at only 1-2 years old these are hard cars to move. If I had to do it again, I would buy it new and lease for 2 years. I put low mileage on it anyway so it is perfect for a lease. Based on what I could get for mine now, it has cost me around $800/month anyway. I paid $42k in 11/16 and if I am lucky could get $30k right now. Right around what a lease would be!
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JagGate (04-16-2018)
#14
https://www.jaguarusa.com/current-of...claimer_header
And it's possible that your local dealer will also have lease specials. For example, my local dealer, The Collection in Coral Gables, Florida, had a lease special through 3/31 on a 2017 XJ for only $749/month with $4,400 at signing.
https://www.thecollection.com/new-ve...ted-brand-logo
#15
I'm not sure how you came up with that price, which I agree is ridiculous. I just checked the jaguarusa website and saw that they have a lease special on a 2018 XJ R-Sport RWD for only $819/month with $5,999 due at signing, but also with a $1,500 rebate for eligible customers. And you can get a 2018 XJ R-Sport AWD for only $849/month.
https://www.jaguarusa.com/current-of...claimer_header
And it's possible that your local dealer will also have lease specials. For example, my local dealer, The Collection in Coral Gables, Florida, had a lease special through 3/31 on a 2017 XJ for only $749/month with $4,400 at signing.
https://www.thecollection.com/new-ve...ted-brand-logo
https://www.jaguarusa.com/current-of...claimer_header
And it's possible that your local dealer will also have lease specials. For example, my local dealer, The Collection in Coral Gables, Florida, had a lease special through 3/31 on a 2017 XJ for only $749/month with $4,400 at signing.
https://www.thecollection.com/new-ve...ted-brand-logo
#16
I suspect that most, if not all, brand-new XJs are leased by businesses since that expense is tax-deductible. The amount of depreciation is factored into the lease rate, and usually brings the residual value after 3 years and 30,000 miles down to approximately half of the original MSRP to make it an attractive purchase as a CPO Jaguar.
The first owner/lessee takes a big depreciation hit, but if it's used solely for business it's deductible and comes out of your employer's pocket, not yours.
For personal use, it makes more economic sense to buy CPO, not new.
The first owner/lessee takes a big depreciation hit, but if it's used solely for business it's deductible and comes out of your employer's pocket, not yours.
For personal use, it makes more economic sense to buy CPO, not new.
#17
Carmax had a 2011 rhodium silver XJ (base) short wheelbase Supersport, 51,000 miles and loaded for $25,750. Massaging seats, Leather headliner, adaptive cruise control, etc I was tempted to buy it and add their warranty, but they wanted $6,500 for the warranty. It was on the lot for 3 weeks.
#18
Carmax had a 2011 rhodium silver XJ (base) short wheelbase Supersport, 51,000 miles and loaded for $25,750. Massaging seats, Leather headliner, adaptive cruise control, etc I was tempted to buy it and add their warranty, but they wanted $6,500 for the warranty. It was on the lot for 3 weeks.
#19
Is there an actual difference in the design from the 2010 to the 2018 in terms of block, cylinder head, oil passages, and cooling system?? I am far from an expert but I think they are all very similar.
#20
Yes I agree a LOT of expensive cars are paid for by the taxpayer because they can be written off against business income.
I have purchased 2 Jaguars after they came off a 3 year business lease and both were well less than 1/2 list price. Got a 6 year/100K mile CPO warranty on the second one.
A very good deal for us cheap used car buyers!
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I have purchased 2 Jaguars after they came off a 3 year business lease and both were well less than 1/2 list price. Got a 6 year/100K mile CPO warranty on the second one.
A very good deal for us cheap used car buyers!
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