2019 Rubicon pricing improve in June??

[Scott2.0]

That's not how any auto loan I've ever had works. Read the fine print man. I have done exactly as I described and seen the results. What figure do you think they use to calculate your interest?

LOL, fine print for what? I highly doubt that you've ever been given a revolving auto loan. Fixed term loans are based on an amortization schedule and it will not will not reamortize if the principal is paid in advance of the schedule. It's the same as a mortgage. You can write a $50k check toward your mortgage, but your required payment doesn't change (with the predetermined amount going toward interest), the loan will just end early. The same thing applies here, and since we're using the assumption that the loan will be paid off or refi'd after the required six month, there is no interest savings by making a lump sum payment. Unless you're financing your car on a credit line, you're simply wrong.

See the attached amortization schedule for a $50k, five year, 10% loan. The figures shown in the interest column will be paid regardless of any larger than required payment toward the principal. In this case, your interest expense over six months will be $2,418, regardless of any additional payments made toward principal.

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[word302]

LOL, fine print for what? I highly doubt that you've ever been given a revolving auto loan. Fixed term loans are based on an amortization schedule and it will not will not reamortize if the principal is paid in advance of the schedule. It's the same as a mortgage. You can write a $50k check toward your mortgage, but your required payment doesn't change (with the predetermined amount going toward interest), the loan will just end early. The same thing applies here, and since we're using the assumption that the loan will be paid off or refi'd after the required six month, there is no interest savings by making a lump sum payment. Unless you're financing your car on a credit line, you're simply wrong.

See the attached amortization schedule for a $50k, five year, 10% loan. The figures shown in the interest column will be paid regardless of any larger than required payment toward the principal. In this case, your interest expense over six months will be $2,418, regardless of any additional payments made toward principal.

Lol. Once again no. Most car loans are simple interest loans. Interest is calculated based on the amount owed, not an amortization scale.

 

[Scott2.0]

Lol. Once again no. Most car loans are simple interest loans. Interest is calculated based on the amount owed, not an amortization scale.

Hey man, ignorance is bliss. I promise you, your $30k advance payment or whatever you did, thinking that you were being slick, didn’t save you a dime. This is some finance 101 stuff, but believe whatever you want. A car loan in no way recasts every month based on the amount of principal remaining. It’s a simple amortized term loan, based on the initial principal amount owed. You’re actually arguing that the sky isn’t blue at this point. You simply don’t understand the subject matter in which you’re arguing, clearly.

 

[word302]

Hey man, ignorance is bliss. I promise you, your $30k advance payment or whatever you did, thinking that you were being slick, didn’t save you a dime. This is some finance 101 stuff, but believe whatever you want. A car loan in no way recasts every month based on the amount of principal remaining. It’s a simple amortized term loan, based on the initial principal amount owed. You’re actually arguing that the sky isn’t blue at this point. You simply don’t understand the subject matter in which you’re arguing, clearly.

So when my first interest payment was almost $300 and my second interest payment was just over $100, I must have just made that up. You do you man. I think I understand just fine. Even making bi weekly payments instead of monthly will reduce your interest because, guess what, you are reducing your balance owed sooner.

 

[Scott2.0]

So when my first interest payment was almost $300 and my second interest payment was just over $100, I must have just made that up. You do you man. I think I understand just fine.

Haha, do you actually think that proves anything? You likely just prepaid some of the interest with your lump sum. Sorry man, you’re out of your league here and weren’t as savvy as you thought. This is what I do and you’re simply wrong - unless you purchased on a credit line. You didn’t though.

 

[word302]

Haha, do you actually think that proves anything? You likely just prepaid some of the interest with your lump sum. Sorry man, you’re out of your league here and weren’t as savvy as you thought. This is what I do and you’re simply wrong - unless you purchased on a credit line. You didn’t though.

So explain to me, oh great one, how an auto loan can be paid off many months early simply by splitting your payments into 2 bi monthly payments?

 

[Scott2.0]

So explain to me, oh great one, how an auto loan can be paid off many months early simply by splitting your payments into 2 bi monthly payments?

Stop it. Seriously? This isn’t at all the same situation that you’ve been describing and erroneously arguing. I assume you’re just trolling now, but I’ll bite in case you really don’t get it and in case this can help another finance newbie.

There are twelve months in a year. A normal repayment schedule has twelve annual payments. By splitting your payments in half and paying them every other week, you’re making 26 half payments per year, or 13 full payments per year. The extra annual payment will eliminate your balance ahead of schedule, saving you interest over the life of the loan, by paying it off early.

In that example, the loan is wiped out early, saving you interest on the payments that you then don’t have to make. While the loan is in place, you’re not saving anything, you’re simply prepaying to get to the finish line sooner.

Are we getting somewhere now?

 

[Solidaxle]

I don’t think so

 

[Scott2.0]

I don’t think so

LOL, neither do I.

 

[JJSix]

It depends on your loan provider. If your auto loan has precomputed interest, the interest that you would pay for the life of the loan is added to principle and you pay off the total over whatever the life of the loan is. If you have that type of loan, then pre-payment doesn't do jack for you. If you have a simple or complex interest loan (ie. not precomputed) then the interest will be calculated based on the current principle. Then pre-payment is a huge money saver. Both types of loans are available for auto loans, it just depends on where you get your loan from.

 

[beachbumm78]

It depends on your loan provider. If your auto loan has precomputed interest, the interest that you would pay for the life of the loan is added to principle and you pay off the total over whatever the life of the loan is. If you have that type of loan, then pre-payment doesn't do jack for you. If you have a simple or complex interest loan (ie. not precomputed) then the interest will be calculated based on the current principle. Then pre-payment is a huge money saver. Both types of loans are available for auto loans, it just depends on where you get your loan from.

What he said. My car loan, by making extra payments, it has actually lowered the amount of interest I paid overall. And it was recommended to me to do that by my loan provider. So I ended up paying less than the projected amt. of interest paid for my car loan b/c I paid extra payments that went directly towards the principal. Score! And ya'll seriously spent way to much time arguing over this haha

 

[TxJeep69]

Wow, I disappeared a few days and this thread got derailed.

At any rate, inventories of JLs in Houston are clearly dropping, based on my auto trader search results. I’m sure it’s the plant shut down, which means inventories are probably dropping most places. Gladiator inventory looks pretty fat around here though.

 

[bdubya74]

Julian Hampton, give him a call and tell him Javier sent you. He is great! Best car buying experience I have ever had, and I hate buying cars.

All the other dealers around were 1k higher, they all said they couldn’t get close.

Thank you!

 

[TxJeep69]

Wow, I disappeared a few days and this thread got derailed.

At any rate, inventories of JLs in Houston are clearly dropping, based on my auto trader search results. I’m sure it’s the plant shut down, which means inventories are probably dropping most places. Gladiator inventory looks pretty fat around here though.

Just thought I would update the inventory picture. As the auto trader data suggested, inventories of JLs have been dropping sharply. Latest data shows days of supply around 70, down from the low 90's, which is a significant reduction. Current inventory is only slightly higher than normal. In other words, supply/demand for JLs is more balanced today, thanks to the recent plant shutdown. Once production starts up again, this could change, depending on how sales go. Overall NA light vehicle (as well as JL) sales were up in May, and only slightly below last May.

 

[DanOfTheNorth]

Dealer pricing in Ontario has dropped in June, as the prices are much better right now than the last weekend in May when I looked at a 2019.

Looking at trading in my 2014 Rubicon for a 2019. I am curious as to how much wiggle room there is on them, as when I purchased the 2014, it was getting a vehicle ASAP more as opposed to drawing it out to make the dealership want to sell and obtaining the best value possible.

I have found a 2019 that has really caught my eye with a MSRP of $66K (Canadian), but a manufacturer rebate of $1,500 and a dealer discount of $6K, to bring it down to $58.5

Talking to two different dealerships, they have come within a very close number of each other on the trade-in value, so if it is anywhere between the two values, I would be content.

Basically, how much further do you think I would be able to get the dealership to discount the 2019. The 2019 I am looking at is available at two different dealerships, so I will attempt to play them off against each other, but just wondering what would a successful price drop be? Will they drop additional if I take on an extended warranty?

Any help/suggestions is much appreciated since this is not my forte. I tried to ask about my corporate discount through my employer and that was already shot back NOT ON TRADE INS at one of the dealerships I spoke with earlier in the year.​

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