Depreciation in vehicles is unavoidable. Automotive research by financing institutions and insurance companies has developed sophisticated methods for predicting and tracking the actual depreciation of all brands and models in a market. Using one such depreciation model, we can look at the 2021 Jeep Compass and the predicted depreciation. We can also look at the depreciation experienced by prior model years for the Jeep Compass.
A 2021 Jeep Compass will depreciate 47% after five years and have a five-year resale value of $13,190. It assumes good condition and averaging 12,000 miles per year and a new selling price of $25,072. Compared to similar segment competitor models, the Jeep Compass does not hold its value well.
The Jeep brand does impart a halo effect on the value of the Jeep models. The Jeep brand ranks in the 10th spot out of 20 top brands in the U.S. for brand value retention. The Jeep Wrangler is the model that stands out as the best at retaining resale value amongst the nine model platforms.
Why Does The Jeep Compass Not Hold Its Value?
The Jeep Compass has a history of quality and reliability problems of which the valuators are well aware. The Jeep Compass scored 78 out of 100 in the Customer Verified J.D. Power 2021 Quality and Reliability survey. In a tightly contested compact SUV segment, the Jeep Compass achieved the 14th rank on the totem pole against some much cheaper competitor models.
The Buick Encore costing only $25,900, attained a tied spot with 85 points with four other models. The very well-priced Kia Soul at $21,615, the Mitsubishi Outlander Sport at $26,000, and the Toyota C-RH at $25,600.
The first-generation Jeep Compass models sold between 2007 and 2016 are ranked middle of the pack 9th out of 18 models in this segment. The second-generation Jeep Compass was launched in 2017 and is currently ranked 4th out of 18 models. Engine and electrical problems are the main concerns with the 2018 Jeep Compass. Many owners complain of excessive oil consumption by the underpowered 2.4L engine.
How the Jeep holding company attends to the publicized problems is the most significant factor in devaluing the brand resale value. Five burning issues are affecting the Jeep Compass at present that all prospective owners must be aware of.
High Oil Consumption Of The 2.4L Tigershark Engine
The Jeep Compass is powered by a 2.4L gasoline engine, which owners and dealers have found to use a pint of oil per 1000 miles. The oil moves past the defective piston rings into the combustion process, causing excessive smoking and problems with the emissions control system.
The engine has an oil capacity of 5.5 quarts. Rapid oil consumption results in the engine stalling and the oil warning light coming on. Stellantis (Formerly Fiat Chrysler), the new owners of the Jeep brand, has been avoiding the issue stating, that the high oil consumption is typical for this engine, trying to avoid a recall.
A class-action lawsuit was filed against Fiat Chrysler in August 2020. The lawsuit is still pending, casting doubt on who will bear the cost of repairs and maintenance of Jeep Compass models launched after 2015.
Jeep Compass Tigershark Engine Recall Due To Emission Violations
Current owners or potential buyers need to be aware of a pending recall of Jeep models in which the 2.4L Tigershark engine is deployed. Stellaris and former owners Fiat Chrysler are trying to avoid a recall by stating that the problem is not safety-related and can thus not be enforced by the National Highway Traffic Safety Administration (NHTSA).
A remedy for the problem does not exist yet, but the Environmental Protection Agency (EPA) has engaged with Stellantis to develop corrective action. Emissions violations are serious, and the cost of the approved remedy will not be for the current owners.
Defective Airbag Crash Sensors On The Jeep Compass
Jeep Compass models fitted with the TRW supplied Airbag Crash Sensors on models sold from 2015 to 2017 are affected by an imminent recall initiated by the NHTSA. These sensors trigger the deployment of the airbags in the event of a crash and are crucial to driver and passenger safety.
A class-action lawsuit for the owners affected by this problem has been initiated. If you are an affected owner or are planning to purchase one of the affected models, please avail yourself of the information regarding this problem as it affects many other Jeep models and competitor brands.
Water Leaks Inside The Jeep Compass
The Jeep Compass models between 2007 and 2016 shared an embarrassing defect with the first generation Jeep Patriot and second-generation Jeep Liberty. Owners of these models reported a serious water leak into the vehicle via the center-mounted front dome light.
Dealers repaired the consequential water damage, but the fix did not seem permanent, and many Jeep Compass’s had to go back numerous times for repairs.
Electrical System Issues On The Jeep Compass
The Totally Integrated Power Module (TIPM) on the first generation Jeep Compass has been well documented and is a shared problem with many other Jeep models in the stable.
TIPM failure modes result in a host of intermittent system failures on the vehicle, including fuel pumps not turning off and burning out, airbags deploying without reason or not deploying when needed, engine stalling and hard starting, the horn blowing at random without engagement, power windows not working and doors locking and unlocking by themselves. The customer groups on Facebook have described their Jeeps as being possessed.
Vehicle valuation experts are well aware of the many unresolved quality and reliability issues on the Jeep Compass and other Jeep models. The risk of these issues is factored into the depreciation rate for the vehicle.
The Jeep Compass is second only to the Jeep Wrangler in retaining value. The technical problems that plague the Jeep band are not an industry secret. If you are considering a Jeep Compass, avail yourself of the facts. Consider renting one for a period to assess it for yourself. Test-drive some of the competitor vehicles in the compact SUV segment and make an informed decision.