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gerlbaum

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Do the math and if the numbers make sense do it. I’m skeptical or the gain may minimal because:

“The average transaction price (ATP) for a new vehicle was up nearly 10% ($3,789) from one year ago in August 2020, and up 1.6% ($685) from July 2021.”
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gerlbaum

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Because your paying interest. If you have the cash to buy outright why wouldn’t you? Your wasting money renting a jeep every month.
True the only down side is this: With interest rates so low right now, the total cost of the loan may only cost you $3k on $50k over 8 years. That’s nothing and it may be more worthwhile to have cash in hand right now considering the way prices are rising. If you invested $50k 8 years ago it would be almost $100k today just matching the DOW which is just the average.
 
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JSFoster75

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If nothing else, it is extremely valuable information that many have given in regards to finances. I'm fortunate that my wife and I both make a very good living. 5 years ago I could never have imagined owning (well, making payments on anyway) a $55,000 car, let alone 2 of them... We have been extremely blessed and have become fairly disciplined in paying down our debt. We negotiated 2.79% for 84 months on both Jeeps, just refinanced our house and lowered that from 4.375 to 2.99% fixed. We overpay on everything and pay off our credit cards & HELOC monthly.

Wind back the clock 10-15 years and I could barely make the minimum payments on my credit cards and I was in debt up to my eyeballs. In my previous marriage, my spouse worked part time at a very low wage job and didn't/wouldn't/didn't want to contribute financially. We were miserable and I was working 2 & 3 jobs just to pay the bills. I was overspending and couldn't get my finances under control. I felt pressured to be a "good provider", but I was doing it an an unsustainable level.

I finally broke free of that cycle and disciplined myself to stop spending and start paying off debt. I don't bow at the altar of Dave Ramsey, but I did take some of his principles and apply them where it made sense. I started paying my bills on a 4-week rotation and didn't use the occasional 5th week paycheck to make stupid purchases. I was able to start paying ahead and now I have 5-6 months paid ahead on all my monthly expenses and mortgage plus I'm building a savings account that before would have been impossible. I'm very happy in my new marriage and having a spouse that actually contributes financially, emotionally, spiritually and physically has made a HUGE difference.

I try to plan ahead for all scenarios, and that is the only reason I'm considering selling/trading my Jeep. Due to possible job requirements on the horizon, it's possible that my wife will lose her position of 20+ years. We intend to keep her Jeep if that happens and trade mine on something that I won't have any debt on. I LOVE my Jeep, but I will NOT get in the situation I was at years ago just to drive it. I have learned the hard way that things do NOT buy happiness. True happiness comes from above, it's just on loan to me. :)

Thank you to everyone that has and continues to contribute advice to this thread.
 
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The Last Cowboy

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It's more about what you owe vs what you pay a month. Low interest is one thing, debt is another. If you can foresee that your income will be stable enough to last out the term of the loan, then great.

We are headed into uncharted waters as far as our nation's economy is concerned If the new spending bill passes the Senate. Now is a good time to sell off anything that is creating an unnecessary burden.

@JSFoster75, that 84 month note, combined with the debt, is a hard thing to imagine. I see that you are using some sound judgement in wanting to get out of it. I can't fault you one bit for it. Now is one of the rare times that you could possibly get out of an 84 month loan without being terribly upside down.

I would go further to say that you will need good, reliable transportation because nothing is getting cheaper. A new Wrangler will probably never cost less than it does now. Used will be a different story if/when gas hits a nationwide average of $5 a gallon.

I'm still taking a wait and see attitude, but my optimism is low.
 

Whaler27

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On the $18/hr wage thing.. it's definitely true where I live! However I also think the hourly rate is a bit of a red herring. Every business I've seen where things got really bad, the owner was using it like an ATM, the management was super negligent, and the employees were fed up of being treated like crap and being offered sporadic 20 hour schedules and "clopens" and stuff. And in the last couple of years, going by the number of videos popping up on the internet, I have a feeling working in the service industry has become a pretty miserable job.

The only bright side I see in that right now is what people I know are doing? The friends of mine who worked retail or in food all quit their jobs and moved on to other things. One started going full time with his online store and started doing video streaming on the side, a couple others went to college and I even know someone who already got a much better job in another industry.

And when I drive past a food place that has signs up advertising their $15,16,18 an hour wage, they never mention things like "full time employment" or "health benefits included" or "consistent schedules". They just keep grand standing about how high their wage is. It gets incredibly frustrating to deal with a business like that, because they have so much turnover that you end up with unpredictable hours and inconsistent customer service - nobody takes pride in it.
Everything about this post reflects entitled millennial.

With the exception of manager positions, fast-food jobs have ALWAYS been part-time, “unbennefitted”, entry-level jobs. The difference is they used to pay minimum wage, and they now pay close to twice the minimum wage.

Half the people I know got their first job at McDonalds, DQ, or Taco Bell. We worked whatever shift was available, because we needed to earn money — to pay rent, go to the movies, date, buy a vehicle, or whatever. There was no lay-on-your-ass-and-get-free-stuff solution. None of us expected Dairy Queen to be a lifelong profession. It was a start, and it taught us the importance of showing up, sucking it up, and doing what needed to be done, even if that meant cleaning the bathroom and working Saturday night when all your friends were out playing. Nobody loved the job, but it was better than starving, and it was incentive to focus on building the education, skills, and resume to move up the employment ladder to progressively better opportunities. Many of us went into the military — and got more lessons on sucking it up, doing what needed to be done, and sacrificing for the people around us.

The expectation that working at a car wash or a fast food place will be fully benefitted with a reliable and steady work schedule is even crazier than turning your nose up at $18 per hour for completely unskilled labor.

Meanwhile, my wife busted her ass as a waitress for almost 25 years. Her last boss arrived in the US from India with $37 in his pocket. He started out washing dishes, which was one of the few things he could do with no skills and a language deficit. When we met him he was managing a restaurant and working nights as a Janitor. By the time my wife left the restaurant this guy had quit his manager job to manage an apartment building he bought with the money he had saved by being incredibly frugal, living in dumps, and depriving himself of most of the conveniences kids now see as essential. In thirty years he built his net worth from $37 to more than $5 million, and he did it by sucking it up and working through years of doing work most millennials consider “beneath them”. How did we get so entitled?
 
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JSFoster75

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It's more about what you owe vs what you pay a month. Low interest is one thing, debt is another. If you can foresee that your income will be stable enough to last out the term of the loan, then great.

We are headed into uncharted waters as far as our nation's economy is concerned If the new spending bill passes the Senate. Now is a good time to sell off anything that is creating an unnecessary burden.

@JSFoster75, that 84 month note, combined with the debt, is a hard thing to imagine. I see that you are using some sound judgement in wanting to get out of it. I can't fault you one bit for it. Now is one of the rare times that you could possibly get out of an 84 month loan without being terribly upside down.

I would go further to say that you will need good, reliable transportation because nothing is getting cheaper. A new Wrangler will probably never cost less than it does now. Used will be a different story if/when gas hits a nationwide average of $5 a gallon.

I'm still taking a wait and see attitude, but my optimism is low.
I'm considering a Camry/Avalon Hybrid... My wife and I carpool, and just the gas savings alone would be fairly substantial, we can keep her Jeep in the garage where it typically stays. Right now I'm spending about $60-$70/week in gas, going to a Hybrid would but that in half or more. I've put 9,980 miles on my Rubi at a total fuel cost of $1,475.51 since July 2 (only 5 months). Calculated out, my fuel bill would be $3,541.22 just for my Jeep... Cutting that in half would put $1,770 in my pocket in gas savings. Doesn't sound like much, but that is $147.55/mo. in gas savings...

So, let's say I traded for a car that is half of what my Jeep payment is, plus saved on gas.... I could easily cut my monthly bill by $447.55/mo. and still drive a very nice vehicle ($32,000 worth minus my $12,000 in equity, I'd be financing around $20,000).

Now, if I bought a $12,000 vehicle (Prius most likely, I've owned 6 of them and they are good vehicles), I'd save almost $750/mo in payments & gas... (Not including the extra $200+/mo that we pay on each Jeep)
 

Jeffmiller32

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Read the first page and the last page. Will they let you keep your mods and still give you $51k?

I sold my my 2019 base JLU for $42k when I bought it new for $36. They let me keep the mods which sold for about another $3k. I didn’t have much into and most of the stuff I got on OfferUp and CL.

Had about $20k in equity after the sale and bought a 2012 BMW 335i for $13k and spent some money in mods. Also have a 2013 Boss 302 that was already paid off.

You can always get another Jeep when these car prices go back down. Can’t always make money on a car that you paid for new. It has been nice not having a car payment for the last 6 months. Saved enough to get the my home painted and the yard makeover all cash flowed without touching my saving or resulting in debt.
 

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Is the market guaranteed to stay up every day and never go down?
The "Market" doesn't guarantee anything. It exists to function. Regulatory agencies exist to ensure that it functions correctly.

Shrewd investing is what points a portfolio in a northerly direction.
 

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I'm considering a Camry/Avalon Hybrid... My wife and I carpool, and just the gas savings alone would be fairly substantial, we can keep her Jeep in the garage where it typically stays. Right now I'm spending about $60-$70/week in gas, going to a Hybrid would but that in half or more. I've put 9,980 miles on my Rubi at a total fuel cost of $1,475.51 since July 2 (only 5 months). Calculated out, my fuel bill would be $3,541.22 just for my Jeep... Cutting that in half would put $1,770 in my pocket in gas savings. Doesn't sound like much, but that is $147.55/mo. in gas savings...

So, let's say I traded for a car that is half of what my Jeep payment is, plus saved on gas.... I could easily cut my monthly bill by $447.55/mo. and still drive a very nice vehicle ($32,000 worth minus my $12,000 in equity, I'd be financing around $20,000).

Now, if I bought a $12,000 vehicle (Prius most likely, I've owned 6 of them and they are good vehicles), I'd save almost $750/mo in payments & gas... (Not including the extra $200+/mo that we pay on each Jeep)

But you would be driving a Prius. Which personally I have no desire to do. So it is all subjective to the person. Sell it, keep it, trade it whatever you wish but no one can give you a justification for doing either. Yeah it is all good money wise, I thought about picking up a Mazda until I sat in one and remembered why I bought the last 2 or 3 Wranglers. Is like sitting in a go-cart.
 

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Get rid of the payments. If you can’t pay cash don’t buy it yet. I love jeeps, but it’s a rolling brick that sucks money daily. 600+ for a jeep is insane.
If I can't pay cash for my Toys I don't buy them !
 

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roaniecowpony

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Is the market guaranteed to stay up every day and never go down?
No. But it has a 100 year history of making more money on average than most other areas where working class people stick their money. I was a working class person all my career(s) and because of a lot of investing in the market, I have enough that I'm not likely to spend all my money in my lifetime and can live life very well in my new retirement.
 

roaniecowpony

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If I can't pay cash for my Toys I don't buy them !
In more stable economic times, I'd agree. But we are upside down with an economy that is growing and interest rates that are flat and very very low. I remember the interest rates on a used car when Carter was President were like loan shark rates. I think I paid 19% for a used car loan back then. Now is now and then is then.
 

Beaching631

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I developed a system where I have a automatic transfers set up every Monday from my checking account to my four savings accounts to cover all my large bills. I have a fulltime job that covers that. I have income from my family's business that covers other expenses and investments... and I just got a second job at the bar across the street to pay for the Wrangler. I had enough cash for a large downpayment, but decided to put half of it in the stock market and I've already made 25%. I've got excellent credit, so I use my credit cards to get cash back, and when I have extra cash, it goes straight to investing. My father is an accountant and he's always said to let your money make money for you. He also allows himself to always have a fun car.

So having no idea of your finances, I can't really say much... but I would recommend you to balance fun VS future money.... make sure you're thinking about both.
100%!!
You need to balance saving/investing for the future vs. having fun and living a little bit. Find the point on the fulcrum that works for you. If it were purely a financial decision, no one should ever have a Jeep. But, like my grandfather always said, "you can't take it with you."
 

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In more stable economic times, I'd agree. But we are upside down with an economy that is growing and interest rates that are flat and very very low.
Prices are also upside down. Low interest rates are fine in context, when one doesn't have to concurrently pay $30K for a vehicle that just a year ago would have likely listed for its intrinsic value of $20K.

That this is happening in volume has been credibly walked back to stimulus payments and savings gleaned from working-from-home putting cash in consumers' pockets...cash that they can't resist spending, as opposed to saving, seeing how commodity price trends are observably inverse to interest rates.
 

euan2020

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shuffling offers just now - ranging $41K to $48K (although Vroom reduced to $45K 1 week later)
Really looking for dealer where i can marry a decent offer, with a new purchase on 2022 with discount to invoice - i am normally pretty good at finding those Unicorns
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