I need some advice...

[Paluss]

Buy the lease and get a equity loan for the roof.

I agree, and add the Jeep loan into the equity loan too...

Sponsored

 

[GMX]

Since you are asking...why not ask a professional like Dave Ramsey?
We have working toward shared goals and follwed his advice for more than 30 years...and we are still married...lol
Resources to Tackle Debt - Ramsey (ramseysolutions.com)
From the website: Debt is the biggest theif of your financial future...

 

[Oncorhynchus]

Ask daughter’s gandparent or rich uncle to finance an in-family college loan at 2.9% as an object lesson for the kid to learn about financial responsibility and the value of paying back what you owe. Use your cash on hand to buy down as much of the Jeep residual as possible. Finance the rest from your local bank or credit union at the crazy rates that everyone has to live with these days.

Then watch this video:



and teach your kid that the way to earn money the old fashioned way is to inherit it. The myth of the self-made man is a myth to keep the poor man poor and hide the fact that generational wealth is where the action is. Nothing like Father Time and compound interest to grow wealth.

 

[BVGeezer]

From one PA James to another:

Purchase a reasonably priced and well maintained used vehicle for cash, and/or with as little financing as possible.

Use the money you're not spending on a high payment to rebuild your liquidity.

With due respect, nowhere is it written that you have to stay in the hole that you've dug for yourself.

This is the smartest advice you can get for free. Of course, you can pay someone to tell you the same thing.

 

[TrentYoung]

I told my kids I wasn’t paying for their college. The military is a great way to get them out adulting on their own.

If college is important enough they’ll still go and can use their GI bill to pay for it.

When they get out they can use the zero down VA loan to buy a house. That will keep them from living with you after they got a useless degree.

From the money saved I’d turn in the lease and get a new Rubicon.

It’s a win win win.

Brilliant...you must either be old school or got an old school education. Best thing you could ever do for your kid!

 

[Bandit59]

Hello forum!

I have a 2021 JLU on lease. My lease ends this November. The residual is $35k. Given high interest rates and declining used-car values, I'm hesitant to finance or lease a new vehicle, but will probably have to.

These are my options at the moment:

1. Buyout the lease with a loan from my credit union or some other lender. Rates vary anywhere from 5.5% to 9% with tier one credit.
2. Return the JLU and lease another Wrangler with hopes that the Fed reduce the prime rate to something more palatable for consumers within the next 3-4 years.
3. Return the JLU and finance a new Wrangler. Chrysler Cap rates around 8% for tier 1 credit holders.

I have limited liquidity at the moment due to my oldest starting college as well as having to spend $40k to replace the roof on my house, so money is a deciding factor. I love my JLU Willys but always wanted a Rubi. To be honest, my JLU does pretty much everything I need it do both offroad and on road and I would've easily settled for buying it out if interest rates were better. However, I just can't wrap my head around financing a used 3-year-old vehicle for another 4-5 years at current rates.

What would you guys do in my position?

I guess if the Jeep is perfect then I would do the deal and keep it. Not much you can buy new or used for that price. You can always trade it in later if you want. And now you know what you have. That new one is unknown

 

[amstel78]

Thank you to all for your advice. Very good points from everyone. A lot to consider.

 

[Jared1956]

The cost of capital is not going down, and will in fact probably double in the next 10 years. Half of the baby boomers have already retired, liquidating their portfolios. The other half is retiring now. All of that money is being pulled out of the system and used for living instead of investing. On top of that, the generations coming, are smaller than the one that is retiring

We have never in human history seen anything but generational growth….until now…..do not expect the next 50 years to be like the last 50.

So does that mean you won’t see promotional offers from manufacturers? Or that the Federal Reserve won’t lower instead rates in the short term? No to both. However, I would not expect a rerun of 2008-2020. It may be that money is as cheap now as it will be for the next 10 years or more…….

 

[GATORB8]

I agree, and add the Jeep loan into the equity loan too...

Haven't used one, but looking, aren't equity loan rates running up near new car rates?

 

[amstel78]

Buy the lease and get a equity loan for the roof.

I did a VA streamline refi back in 2022 when interest rates were at 1.99%. If mortgage interest rates were still below 3%, I'd consider it but not now. Plus, there's something about VA home loans that don't lend themselves well to cash-out refinancing. I can't recall exactly, but I do believe that most VA loans aren't eligible for that.

 

[GATORB8]

I did a VA streamline refi back in 2022 when interest rates were at 1.99%. If mortgage interest rates were still below 3%, I'd consider it but not now. Plus, there's something about VA home loans that don't lend themselves well to cash-out refinancing. I can't recall exactly, but I do believe that most VA loans aren't eligible for that.

I believe he was thinking HELOC, not a refi.

 

[amstel78]

I believe he was thinking HELOC, not a refi.

Gotcha. Thanks for clarifying. I'll have to look into that.

 

[GATORB8]

Gotcha. Thanks for clarifying. I'll have to look into that.

If your daughter can qualify for a subsidized student loan, looks like they do not accrue interest while in school. That'd probably be the best rate (0%).

 

[GoatHerder]

My wife and I have enough diplomas to wallpaper a small bathroom. Both of us are from blue collar union households. I was the first one in my family to go to college. Started in a wheelchair from motorcycle wreck. Age 19.

We had some family help and student loans to fill in the holes. We both had well focused degree choices. We knew what we were trying to accomplish. We both went to junior colleges to save money. mostly state colleges for advanced degrees.

Our kids went to junior colleges to save money, then state schools. Same program, we (parents helped, student loans filled in the holes). No pay to play program, my son commuted to his 4 year program, my daughter did the same, plus a masters.

we made sacrifices to cash flow college. The World is different. A well chosen career will help today’s kids to have the same lifestyle their parents experienced.

IMO, an education has more value than any future inheritance. If a person doesn’t know what they want to be, I would suggest the military.

Hope this helps.

 

[azjl#3]

Hello forum!

I have a 2021 JLU on lease. My lease ends this November. The residual is $35k. Given high interest rates and declining used-car values, I'm hesitant to finance or lease a new vehicle, but will probably have to.

These are my options at the moment:

1. Buyout the lease with a loan from my credit union or some other lender. Rates vary anywhere from 5.5% to 9% with tier one credit.
2. Return the JLU and lease another Wrangler with hopes that the Fed reduce the prime rate to something more palatable for consumers within the next 3-4 years.
3. Return the JLU and finance a new Wrangler. Chrysler Cap rates around 8% for tier 1 credit holders.

I have limited liquidity at the moment due to my oldest starting college as well as having to spend $40k to replace the roof on my house, so money is a deciding factor. I love my JLU Willys but always wanted a Rubi. To be honest, my JLU does pretty much everything I need it do both offroad and on road and I would've easily settled for buying it out if interest rates were better. However, I just can't wrap my head around financing a used 3-year-old vehicle for another 4-5 years at current rates.

What would you guys do in my position?

offer them 10,000 less than the residual, used are flooding market

Sponsored