British car brand Jaguar has been producing luxury cars with a focus on performance since 1922.
However, anyone looking to purchase a Jaguar might be surprised at how cheap they are.
So, just why are jaguars so cheap?
Jaguars are so cheap because, like most luxury brands, they depreciate quickly and are expensive to maintain. Also, they are not as widely recognized as other luxury brands such as BMW and Mercedes, which reduces demand (and therefore price) further.
Continue reading for a full breakdown of the reasons, if they have many problems, and if they are worth buying.
3 Reasons Jaguars Are So Cheap
Let’s take a look at the 3 main reasons why Jaguars are so cheap.
1. The Resale Value Is Low
One of the reasons why you can buy a Jaguar cheaply is that it loses its value quickly. According to CarEdge, a 2019 model was only worth around 60% of its original price in 2021. After just one year, your Jaguar could lose almost 30% of its value.
In contrast, Subaru is the brand with the highest resale value. You can expect this type of car to be worth 83% of its original value after one year and 78% after two.
Since customers know that they won’t be able to sell their Jaguar for a lot of money, they aren’t willing to pay top dollar for it.
2. They Have Low Market Share
Since 2018, the number of Jaguars sold in the United States has fallen. In fact, only 18,186 units were sold in the US in the 2020/2021 season.
In contrast, BMW sold over 300,000 units in the same year, and Mercedes Benz recorded similar sales figures.
Jaguar’s lack of brand recognition among car lovers around the country lowers the cars’ value and means that Jaguars don’t have the same demand that other high-end brands do.
3. They Are Expensive To Maintain
People who own a Jaguar pay much more to maintain their car than other luxury car owners.
You might spend around $11,000 to 12,000 on an average sports car in the first five years, but a Jaguar costs around $17,600 to maintain.
By the time your Jaguar is 10-12 years old, it’s likely that you’ll pay more than $3,000 to keep it in good shape. What’s more, the probability of an expensive repair increases dramatically. By Year 12, there is a 78% chance that you will have to have a major part fixed or replaced in the next twelve months.
When choosing their new vehicle, car buyers take this factor into consideration. They might not be willing to spend a lot on a Jaguar because they know the running costs are high.
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Why Are Used Jaguars So Cheap?
As mentioned, Jaguars lose almost 30% of their value within a year and around 50% in the first four years. This is mainly because buyers might have to spend $10,000 to $20,000 on repairs within a few years. Therefore, they are not willing to pay a lot.
Even though some newer Jaguar models don’t require as much maintenance, many used Jaguar sellers set a low price, often around $4,000-6,000.
This is because people still remember the astronomical price of Jaguar repairs in the 80s and 90s. It will take a while for the brand’s reputation to recover. Thus, used Jaguars are likely to remain cheap for the next few years.
Are Used Jaguars Reliable?
In the past, used Jaguars were very unreliable, but the manufacturers have recently made an effort to improve the quality. Whether your Jaguar runs reliably depends on the model and year you buy. Generally, Jaguars manufactured before 2015 are considered more unreliable.
What’s more, not every model is equally reliable. Many experts consider the Jaguar S-Type to be poorly constructed and likely to break down, but the XK and XJ models rank higher when it comes to reliability.
Do Jaguars break down a lot?
Like many other types of luxury sports cars, Jaguars tend to break down a lot. The brand’s reliability and reputation is improving, but you can still run into problems with both new and used cars. If you’re looking to purchase a Jaguar, you should research which models and years are least likely to break down.
Some people argue that the XK is the most reliable model. However, the Jaguar XJ is also considered sturdier than other options, especially the models constructed between 2010 and 2019. According to WhatCar, this car has a reliability rating of 85.6%, which is the second-highest of the six luxury cars that were tested.
In contrast, the reliability rating of the Jaguar XF 2015-present is only 53.0%, so this car is much more likely to break down. If you’re looking for a reliable Jaguar, you should either choose an older version or a different model.
Do Jaguars Last Long?
Jaguars don’t typically last as long as some other car brands. The most important factor isn’t the age but the mileage of the car. The typical Jaguar lasts for around 100,000 to 150,000 miles.
However, you might be able to extend your used car’s lifespan with proper maintenance. Some Jaguar enthusiasts, who have taken especially good care of their cars, report mileages of over 200,000.
Are Used Jaguars Worth it?
Used Jaguars can be worth it, but it depends on what you’re looking for. If you need a reliable vehicle that runs for many years, you might need to look elsewhere. However, if you’re interested in a cheap luxury car, Jaguars are 100% worth it.
Many Jaguar enthusiasts agree that you shouldn’t buy a car that has a high mileage because it’s unlikely to last very long. If you’d like to purchase a used Jaguar, consider going for a newer model that has less than 50k miles on it. That way, you can skip most of the depreciation, but you won’t run into reliability issues yet.
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Final Thoughts – Why Are Jaguars So Cheap?
There are three main reasons why both new and used Jaguars are cheap. They depreciate quickly, the brand has a low market share, and there are now some entry-level Jaguars available that aren’t meant for high-end consumers.
Not all models are equally reliable, but the brand has made an effort to improve the quality in recent years. Drivers looking for a good used Jaguar could consider an XK or XJ. They should also make sure that their car doesn’t yet have high mileage.
If you believe a Jaguar is right for you, now is the time to act. As the brand’s reputation improves, it’s likely that the price of this elegant and powerful car will also increase.
Sources:
- caredge.com/jaguar/depreciation
- statista.com/statistics/763140/jaguar-sales-volume-cars/