Salesman Says Woman Tried to Upgrade $88K Jeep Grand Wagoneer. Then He Tells Her How Much It’s Worth Now

A woman who spent $88,000 on a new Jeep Grand Wagoneer was shocked to learn how much it had depreciated since she bought it. A Toyota dealership salesman recently shared the story of how he had to break it to her that the vehicle isn’t worth anything close to what she paid for it.

The base manufacturer’s suggested retail price for the Grand Wagoneer is $84,945. But despite the vehicle’s high price tag, attacks on its quality and value have circulated the automotive world. It packs in a ton of features, but infotainment woes, inconsistent build quality, safety concerns, and recalls affecting over 160,000 manufactured units have raised alarm bells.

Car salesman Austin Baker (@austin.toyota) says that one Grand Wagoneer owner learned the hard way about vehicle depreciation. He says she approached him about a potential trade-in, which prompted him to give her some unfortunate news.

“Sometimes I feel bad for people. Had this lady with a Jeep Grand Wagoneer. She was like, ‘Man, my thing is nice. But I wanna upgrade to a newer model,’” Baker says. He immediately informed her that he could facilitate a trade-in and get her situated with a brand spanking new ride.

She was prepared to roll around in some new wheels. She wasn’t prepared for how much money she was going to lose upon doing so. “Yes ma’am, I’ll take care of that for you,” he says he told her. Following this, he asked the woman, “How much you owe on that Jeep Grand Cherokee Wagoneer ma’am?” He says she told him she owed about $68,000.

Baker was flabbergasted by how much more she needed to pay for the vehicle in order to not be upside down on it. “You owe 68 [thousand]? How much did you pay for that brand new?” he inquired.

Gallery: 2024 Jeep Wagoneer S First Drive Review

How Much Do New Cars Depreciate?

The first five years of a car’s lifespan sport its most abysmal years of depreciation. Sixty months, or five years, after rolling off a production line and into a customer’s driveway, they can lose up to 60% of their value.

Ramsey writes that most new car buyers have no idea just how much money they’re losing when purchasing a new vehicle. “If you bought a new car tomorrow for $20,000 … you can expect to sell it for around $8,000 [five years later.]”

In fact, new cars lose 10%-15% of their value within the first month of ownership. They continue losing around 15% each year after that.

Ramsey did indicate there are some variables that ultimately affect trade-in values. A vehicle’s model can impact how much drivers are getting for a trade-in. If it’s a popular, highly sought-after car, it’ll retain more value.

This basically means that selling a Toyota RAV4 Hybrid will be easier than something like a Grand Wagoneer. Ramsey adds that fuel economy plays a factor as well; cars that are better on gas usually fetch higher price tags.

A manufacturer’s reputation also plays a role. As per Consumer Reports, Jeeps tend to hover towards the end of the pack when it comes to used car dependability.

Kelley Blue Book writes that Toyotas, Subarus, and Hondas retain their values better than all other brands.

How Much Did Her Wagoneer Depreciate?

As their conversation progressed, the TikToker learned that she paid $88,000 for the Jeep. “Wow that’s an expensive vehicle,” he says he told her before plugging in some numbers to see what she’d nab for a trade in. “Get an appraisal on it. And, regret to inform you that vehicle’s worth $41,700. You got $30,000 to bridge that gap?” he says he asked the driver.

She didn’t take the news well.

“She started crying,” he says. He informed her that he could go up to $42,000.

Then he shares a message for new car buyers. “Just because you buy an expensive car doesn’t mean that car’s gonna retain its value,” Baker says.

Motor1 has reached out to Baker via TikTok comment for further information. We'll update this if he responds.