;;;;;

 

It is shocking the value that wranglers and raptors hold used. The Toyota used prices... I just don't understand. Perceived reliability and actual reliability are two different things yet perception leads for Toyotas... LR makes only vehicles with extra gadgets... so there are more things to go wrong. A 4runner with 12 year old tech in it should be well sorted... but why would I pay 2020 prices for essentially a "new" 2008 model... I don't get it... plus, toyota gets to lump in a stripped Corolla or rav4 in and of course those have less issues per 100 vehicles compared to a brand that typically only sells upscale/optioned up vehicles.

But, on the otherhand, i priced 2017 and 2018 discos for several months and their used prices stayed high enough that we just bought new in 2020 instead.

No telling how the Defender will do.

 

I think it depends on a lot of factors, supply vs demand is what we are all dealing with right now. Depending on how many are sold in the US, it could keep value high for resale. But all of us paying full sticker, it will likely be a while before we see the equity really turn in our favor.

I kind of feel that there have been some real spoilers in the last 18 months that will hurt Defenders. The release of the Gladiator is the first one. I have to admit, that getting one on larger tires (40s) on "bob-ing" the bed would make it a great vehicle for my needs.

Of course the release of the Bronco has to be talked about. It will no doubt steal some sales, but it could also get more people excited about being off-road and that could help Defender sales.

As a brand enthusiast, I suspect I will always have at least one Rover in the garage. The defender hits all the right buttons for me. I've had Discos, LR4s and full size Rovers, they all seem to offer me that level of capability I expect out of a vehicle.

We have one wild card that we will not know how it affects vales: COVID 19. It could help or hurt values for many brands, but being a rather niche brand, LR may take a bigger hit or really hit a homerun.

Guess we will have to wait and see.

Rob

 

If they have problem after problem they will flop. Even though the old school D90’s aren't known for their reliability they hold their value because they were limited and because they look awesome. The new Defender is a great looking vehicle but it will never be the older 110’s, 94,95,97 D90’s. It must be reliable or it will be junk in 10 years. I hope they do well and can’t wait to see the 90’s.

 

We probably won't know for about 6-8 years until the next Defender model comes out. If everyone that bought a new Defender loves it and LR screws-up the next version, the current one holds it's value.

For example, most of us LR4 owners love our LR4 but dislike the Discovery 5 and will never buy one. As a result, LR4's are holding their value and even those with over 100K miles sell quickly.

 

Daniel:

My entirely subjective opinion is that the depreciation rate of JLR products is primarily driven by: the high cost of dealer Service being charged (required to cover the relatively lightly loaded, high-touch dealer network); the purposeful reduction of Parts Stocking post 7 years on or so, and the (very) significant increases in parts Pricing for such aging vehicles, without finding parts easily elsewhere.

On top of this, the ability to find non-JLR service shops willing and capable to take on the comparatively low volume and high complexity of JLR products (versus say Ford or Toyota products) means a JLR owner has to pay quite a bit extra (in the multiple thousands of dollars per year) to keep their vehicle operating, once more substantial wear components begin needing replacement ... unless of course they are very handy and have the passion and facilities to do the heavier maintenance themselves --- leveraging a few global/nationwide, 3rd party parts catalogs.

I think most standard JLR customers like very much the customer attention from the lightly loaded dealers (those not run by large regional, auto dealer conglomerates -- some of those are problematic, it seems). And I think JLR likes selling a new vehicle after 7 years, instead of choosing to provide an economical Servicing capability post 125K miles.

I have bought three LR products in the last 15 years and just sold one (yesterday), and all seem to be priced (everywhere including at the dealers) on a straight-line depreciation model from zero miles to 125K miles. Not a step wise drop with remaining value at the end. I expect it will be the same with my coming 2020 Defender.

I sincerely attempted to buy a BMW, then a Mercedes, 10 years ago, when living in a large metro area in the U.S., and honestly, I could not find anyone to help me. Like seeking a table at a popular restaurant. The dealers were swamped -- mostly selling 1 series and 2 series (BMW) and the A and C series (MB). The best they could do was offer an appointment 10 days out. Or so I recall.

Just a thought.....

 

Can imagine the value of the 2 litre diesels will drop now the engine has already been replaced with the the 3 litre; why on earth couldn't have LR given early buyers the option of the 3 litre with a later delivery date. To sell the 2 litre only but knowing the 3 litre was going to replace it in only a matter of a couple of months was dishonest.

 

I ordered the 2020 last year at full sticker and hope that the new style of the defener will hold its value vs the range rover rounded styling. I still have my garage queen L320 HSE lux at only 16,000 miles on battery tender for this reason and got the defender to have the driveable landrover fix in the garage.

 

Edmunds Lease Thread posts a 58% residual on 36-month leases, fwiw.