$53000 Jeep...wtf
07-24-2016, 03:11 AM
#11
JK Enthusiast
Join Date: Mar 2016
Location: emmett mi
Posts: 138
Likes: 0
Received 0 Likes
on
0 Posts
07-27-2016, 12:29 PM
#12
Supply and demand. Sadly we no longer teach basic economics in high school.
I am not sure where you get that information but all North American Jeep Wranglers are assembled in Ohio and the 3.6 engines for these Jeeps is made in Michigan. There are certainly a lot of parts that are manufactured in places like Mexico and China and some bulk assemblies like manual transmissions may come from places like Germany but our JKs, and yours in Canada, are all assembled in the USA.
You'd be wrong if you figured that, because inflation, as a general rule, will cause costs to increase over time. Inflation in the USA over the past decade averages about 3% per year so inflation alone accounts for over $9,000 (USD) of the price increase. The rest is easily accounted for by more expensive and at least more valuable parts, in many cases better parts, such as D44 axles, 17" wheels and bigger tires, 4 doors, more sheet metal since it's a larger vehicle, a far more expensive and advanced engine, advanced stability control, etc. etc. the list goes on and on. So actually the value of today's Wrangler is much better than it was in 2006.
The truth is that by use of economies of scale and refined manufacturing processes, as well as leveraging of more targeted spending on manufacturing by using global labor markets, a 2016 Wrangler has managed to improve everything about the TJ in leaps and bounds with only minimal increase in the purchase price over and above increases due to inflation.
You cannot make a viable argument that UAW workers are any more qualified to solder together the ECU and manufacture wiring harnesses and sensors than dedicated fab shops in Guadalajara or Shenzen who manufacture literally millions upon millions of electronic subassemblies and do nothing else. So the truth is, not only does "globalization" in this case reduce costs, but it improves quality.
Not sure where you get the idea they are lower quality. But you are entitled to your opinion. Pretty much in every respect a 2016 JK is a far better vehicle than the TJ it replaced. About the only areas where the TJ wins are lower total weight (and IMHO, the smaller overall size is a benefit) and nostalgia (i.e. you like the old engine because it is old, er, "tried and true", you like the old bodywork because it looks more like a CJ, etc.).
If you find a JK with EXACTLY THE SAME equipment, as much as possible, as the 2006 LJ you are talking about, then you probably will find it is only more expensive by virtue of inflation. And as a bonus you will get a huge number of improvements as standard equipment that you couldn't even upgrade to in 2006.
What should make your head spin is why the USED prices of JKs is so high. I can make very good reasoned arguments for why new JKs prices are what they are, but there's no really good reason why a used one should be so freakin' expensive. Considering the huge resale value, a new JK is not only a good value but a very good investment among automobiles.
I remember looking at a new LJ rubicon that was listed for under 30k back in the day, since then Chrysler went offshore for parts and assembly is done in Mexico.
You'd figure this globalization would lower the price of jeeps, or at least stay constant?
The truth is that by use of economies of scale and refined manufacturing processes, as well as leveraging of more targeted spending on manufacturing by using global labor markets, a 2016 Wrangler has managed to improve everything about the TJ in leaps and bounds with only minimal increase in the purchase price over and above increases due to inflation.
You cannot make a viable argument that UAW workers are any more qualified to solder together the ECU and manufacture wiring harnesses and sensors than dedicated fab shops in Guadalajara or Shenzen who manufacture literally millions upon millions of electronic subassemblies and do nothing else. So the truth is, not only does "globalization" in this case reduce costs, but it improves quality.
I can't get past the sticker price of these new(arguably lower quality) jeeps.
If you find a JK with EXACTLY THE SAME equipment, as much as possible, as the 2006 LJ you are talking about, then you probably will find it is only more expensive by virtue of inflation. And as a bonus you will get a huge number of improvements as standard equipment that you couldn't even upgrade to in 2006.
What should make your head spin is why the USED prices of JKs is so high. I can make very good reasoned arguments for why new JKs prices are what they are, but there's no really good reason why a used one should be so freakin' expensive. Considering the huge resale value, a new JK is not only a good value but a very good investment among automobiles.
07-27-2016, 07:33 PM
#13
JK Enthusiast
Join Date: Aug 2008
Location: CO
Posts: 300
Likes: 0
Received 0 Likes
on
0 Posts
JKs are overpriced as it is, but $40k is ridiculous for a 2-door Rubi stick without a hard top in the US. I paid $34k and some change for my JKUR auto and it came with everything minus the heated leather seats.
07-29-2016, 12:37 PM
#14
JK Enthusiast
Thanks to the strong US dollar, my 2012 2Dr Rubicon is black book trade in value of $30,000. I paid just under $38,000 for it new. I don't know of any other vehicle that holds value like this in this price range.
Its great to have equity in my vehicle, but it also makes the prospect of trading in for a 4 door financially impossible. They are pretty ridiculously expensive for how cheap and unreliable the manufacture is. But they still sell like hotcakes so I don't really expect a reprieve. Might be able to afford a next generation wrangler pickup in 5 years.
Its great to have equity in my vehicle, but it also makes the prospect of trading in for a 4 door financially impossible. They are pretty ridiculously expensive for how cheap and unreliable the manufacture is. But they still sell like hotcakes so I don't really expect a reprieve. Might be able to afford a next generation wrangler pickup in 5 years.
07-29-2016, 04:27 PM
#15
Supply and demand. Sadly we no longer teach basic economics in high school. I am not sure where you get that information but all North American Jeep Wranglers are assembled in Ohio and the 3.6 engines for these Jeeps is made in Michigan. There are certainly a lot of parts that are manufactured in places like Mexico and China and some bulk assemblies like manual transmissions may come from places like Germany but our JKs, and yours in Canada, are all assembled in the USA. You'd be wrong if you figured that, because inflation, as a general rule, will cause costs to increase over time. Inflation in the USA over the past decade averages about 3% per year so inflation alone accounts for over $9,000 (USD) of the price increase. The rest is easily accounted for by more expensive and at least more valuable parts, in many cases better parts, such as D44 axles, 17" wheels and bigger tires, 4 doors, more sheet metal since it's a larger vehicle, a far more expensive and advanced engine, advanced stability control, etc. etc. the list goes on and on. So actually the value of today's Wrangler is much better than it was in 2006. The truth is that by use of economies of scale and refined manufacturing processes, as well as leveraging of more targeted spending on manufacturing by using global labor markets, a 2016 Wrangler has managed to improve everything about the TJ in leaps and bounds with only minimal increase in the purchase price over and above increases due to inflation. You cannot make a viable argument that UAW workers are any more qualified to solder together the ECU and manufacture wiring harnesses and sensors than dedicated fab shops in Guadalajara or Shenzen who manufacture literally millions upon millions of electronic subassemblies and do nothing else. So the truth is, not only does "globalization" in this case reduce costs, but it improves quality. Not sure where you get the idea they are lower quality. But you are entitled to your opinion. Pretty much in every respect a 2016 JK is a far better vehicle than the TJ it replaced. About the only areas where the TJ wins are lower total weight (and IMHO, the smaller overall size is a benefit) and nostalgia (i.e. you like the old engine because it is old, er, "tried and true", you like the old bodywork because it looks more like a CJ, etc.). If you find a JK with EXACTLY THE SAME equipment, as much as possible, as the 2006 LJ you are talking about, then you probably will find it is only more expensive by virtue of inflation. And as a bonus you will get a huge number of improvements as standard equipment that you couldn't even upgrade to in 2006. What should make your head spin is why the USED prices of JKs is so high. I can make very good reasoned arguments for why new JKs prices are what they are, but there's no really good reason why a used one should be so freakin' expensive. Considering the huge resale value, a new JK is not only a good value but a very good investment among automobiles.
07-29-2016, 04:54 PM
#17
JK Super Freak
I paid $26 for my 2 dr Sport. The only option I have is the U-Connect/ Bluetooth. Which I didn't want. But most models had WAY too much for me. And I still think I overpaid. But they gave me 14k on a trade-in that listed around 11k. And I also put $0 down. So, I'm fine with my decision.