Jeeps are some of the most sought-after vehicles in the market today一and for good reason. Aside from having superb reliability, there’s not a single challenger to date that can overthrow the king of off-roading. But of course, along with these features come expensive price tags.
Top Reasons Why Jeeps are Expensive
Jeeps might be expensive, but there are a ton of reasons why the brand can command such high prices. Here are some of the most common ones.
The Most Capable Off-Roader
Jeeps are one of the most capable off-roaders on the market, which justifies their hefty price tag. Jeeps, particularly the Wrangler, are designed with exceptional features and capabilities that let them conquer almost any type of terrain.
Some of these feats include anti-roll and mitigation software, high ground clearance, integrated roll bars, and a tight turning radius. Of course, to have these integrated into the vehicle, Fiat Chrysler Automobiles (FCA) had to shell out a ton of money in research and design. This reflects in the Jeeps’ price point.
Lack of Competition
Branded as “the king of off-road vehicles,” The Jeep Wrangler stayed on top because it essentially has no competition in terms of utilitarian performance. Because of this, FCA can impose a higher price on its vehicles than other makes and models. Other Jeep models are also formidable with their outstanding capabilities.
Jeeps are also considered prestigious vehicles because of their rich history. The strong, spartan-like, masculine image of the Jeep dates back to World War II when it served as a mode of transportation for the American military.
But aside from that, the Jeep’s capabilities stretched beyond transporting goods and people. It also towed anti-tank weapons and served as a machine gun mount and an ambulance.
FCA only lets a limited number of models roll out the factory, which makes Jeeps valuable. This also impacts the value of second-hand Jeeps in the resale market.
Also, considering the market trend that customers are willing to pay more for comfort and luxury in the form of SUVs, FCA can sell their vehicles at a higher price point than most models.
Why Are Used Jeeps So Expensive?
Vehicles ideally lose their value after a few years, making them more affordable. But in the case of Jeeps, even the used ones are still sold at a high price point.
This is because FCA imposes a limited number of Jeeps to be sold in the market even when there’s a great demand for them. Following the law of supply and demand, this strategy leads to high prices.
The rarity of Jeep models circulating the market also makes them more valuable, which is why it can be hard to find one even in the used car market.
Are Jeeps Considered Luxury Cars?
No, most Jeep models are not considered luxury vehicles. Luxury cars refer to vehicles made with expensive, high-quality parts and powered by an excellent engine to provide consumers with optimum comfort and pleasure.
Luxury cars essentially make drivers feel prestigious, pampered, and rich. Some Jeep models offer the same experience, but not all of them, because the Jeep make doesn’t classify as a luxury car brand.
Insurance Costs for Jeeps
There is a common misconception that the Jeep’s hefty price tag means high insurance costs. On the contrary, most models fall below the national average in terms of insurance costs because of several reasons.
Affordable base models, advanced safety features, cheap repair costs, and high crash test ratings are some of the reasons why Jeeps have lower insurance costs than many models.
In fact, insurance costs for Jeep models like the Grand Cherokee, Renegade, and Compass are between $116 and $123, falling below the average monthly premium of $133. The only model that is above the monthly premium is the Wrangler, which is priced at $135.
The Bottomline: Why Do Jeeps Cost So Much?
Jeeps cost so much because of their lack of competition, rich history, FCA’s marketing strategy, and impressive performance. But even with the hefty price tag, people are more than willing to pay the price for Jeeps because of their perks and benefits.
Unfortunately, high price points don’t necessarily translate to expensive insurance premiums for Jeeps due to their advanced safety features and impressive crash test scores.
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