You've Been Warned: This Iconic Jeep Car Loses Over 50% Of Its Value By Age 5

A vehicle with a history that stretches back to the 1970s also has one of the worst resale values of any Jeep on the road in the U.S. After just five years, the Jeep Cherokee retains less than 50% of its value, making it among Jeep's worst models for resale value, according to Slashgear. Although most vehicles depreciate very quickly, some automobiles can retain their value better than others, based largely on reputation. For example, the Jeep Gladiator Sport has a remarkable 71% resale value, per MotorTrend, while the regular Jeep Gladiator can hold 70% of its value, based on its reputation for durability.

However, the latest KL generation of Jeep Cherokees did not sell well in 2022, which was a major factor in why the vehicle was discontinued in 2023. The vehicles also didn't receive glowing reviews. Consumer Reports called KL generation vehicles — which came out between 2019 and 2023 — mediocre, with little to like. Meanwhile, Car and Driver complimented the Cherokee's off-roading abilities, but criticized its bad fuel efficiency and 2023 model price.

When the 2023 Jeep Cherokee model came out, its average price started at $39,290. However, as of early-August 2025, its average listed price was under $18,000, according to Edmunds. However, the 2020 model fared better, with prices starting at $25,000 brand new, and a 2025 average listed value of about $20,000, also according to Edmunds.

What drove prices downward was stiff competition in the SUV market which, as of 2024, was a $528.4 billion sector, according to Stellar Market Research. As a result, some SUV brands plummeted in value in the face of such competition — such as the Alfa Romeo Stelvio, a luxury SUV that experienced a massive price drop in 2025. 

The Cherokee is not alone, however, in the resale value doldrums. The Wagoneer is another example of a Jeep SUV with terrible resale value. Ironically, both the Wagoneer and Cherokee had to compete not only against other comparable SUV brands, but also against more high-end luxury models within the Jeep family. In the case of the Cherokee, this was the Jeep Grand Cherokee — its much larger cousin — which continues to be manufactured. Yet, while the Grand Cherokee is roomier than the regular mid-sized Cherokee, the Grand Cherokee actually loses even more value over time — up to 70% after five years, per Slashgear.

When Jeep manufacturer Stellantis announced it would pause its Jeep Cherokee manufacturing in February 2023, many dealers were left with models still on their lots — roughly 100 days worth of supply, in fact. However, ideally dealers want to have just 60 days of supply of a particular vehicle. This oversight paved the way for price cuts for would-be buyers. 

Jeep's depreciation bleed might not have ended yet for its KL series models. That is because Stellantis announced it would be releasing a 2026 model Cherokee by late 2025. Although details are limited, Jalopnik reported that the vehicle appears to be a ground-up redesign of the fifth generation KL series. That also means the new 2026 series will compete with the older KL vehicles, further reducing their value.

Plus, the 2026 model will not be a pure gas guzzling SUV. Stellantis announced that the vehicle will be hybrid gas-electric powered, which could offer these models an edge in keeping their value when compared to other Jeep Cherokees. According to a study by iSeeCars, in 2025 hybrid vehicles tended to lose 40.7% of worth after five years — a much slower depreciation rate than regular SUVs (48.9%) or all electric vehicles (58.8%).