Interest rates

[Jeepalady17]

Just curious,,are the ever rising interest rates causing you to have to cancel your Jeep orders?? It is getting to that point with me but will keep trying to find a better deal on those as adviced by one of our fellow Jeepers here on the forum You'd think with my 800+ credit score it wouldn't be such a hassle and I am from Sweden originally and my husband was in the Swedish Airforce which makes me a veteran spouse only not in the US... LOL so can't go thru USAA or NFCU or such that still have good rates (I think)

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[Opus]

Was just talking about this in another thread. It's a concern, but I won't know for certain until the Jeep comes in and I go in to sign the paperwork. When I ordered in July we ran numbers with the dealer and found terms we could afford but none of that was locked in. I'm hoping that the extra equity I have in my trade-in, plus maybe extending the terms of the loan, will get it back to a monthly payment I can afford.

If and when rates drop again we'll likely look at refinancing.

 

[Heimkehr]

Just curious, are the ever rising interest rates causing you to have to cancel your Jeep orders?

On vehicle purchases (aka depreciating assets)? No. I save up and write a check.

We did time the construction of our house to pin down the best possible interest rate. The wait was annoying but the savings over the term of the mortgage was of course worth it.

 

[Shibadog]

Please think this over-if a couple points on interest is a deal breaker, you may be reaching a tad too far financially. Don’t overextend yourself. If you really want to do this try and lock in a load at your local bank or CU before rate go higher.

 

[TXRubicon]

Not for a Jeep but I locked for another car next month at 3.49 for 72 or 2.99 up to 66 at Wellby Financial in Houston just last week. A percentage change shouldn’t make or break your ability to purchase a vehicle IMO. The money costs more to borrow yeah, but it shouldn’t be the difference between you being able to afford it or not like it might on a house.

 

[MikeyK]

Was just talking about this in another thread. It's a concern, but I won't know for certain until the Jeep comes in and I go in to sign the paperwork. When I ordered in July we ran numbers with the dealer and found terms we could afford but none of that was locked in. I'm hoping that the extra equity I have in my trade-in, plus maybe extending the terms of the loan, will get it back to a monthly payment I can afford.

If and when rates drop again we'll likely look at refinancing.

Same boat ?

 

[Squibbles]

NFCU never really had great rates to begin with, how much more would it really be with slightly higher rates?

 

[four low]

I have said before, and say again ; get the longest length loan, so that those low monthly payments are affordable in a worst case scenario.
You can pay towards the PRINCIPAL with any surplus money, and pay it off sooner. This protects you against unforeseen circumstances, your choice to get that principal down.

 

[23xr392]

It’s really a double-edged sword. Not only are interest rates rising, but the used car value is coming down from its inflated state. If you still owe on your trade, you’re getting more for it the longer you wait because you’re still making payments. But the value of that trade may be falling off faster than your payments. I still owe on my trade, I’m paying a lot extra on it ($1000/mo) but the trade in value on KBB has fallen $10,000 since July.

IF I had any decent estimate of when the new Jeep would arrive I’d sell my trade outright. But being down a vehicle for 2-8 months is a no go for me.

 

[Jeepalady17]

It’s really a double-edged sword. Not only are interest rates rising, but the used car value is coming down from its inflated state. If you still owe on your trade, you’re getting more for it the longer you wait because you’re still making payments. But the value of that trade may be falling off faster than your payments. I still owe on my trade, I’m paying a lot extra on it ($1000/mo) but the trade in value on KBB has fallen $10,000 since July.

IF I had any decent estimate of when the new Jeep would arrive I’d sell my trade outright. But being down a vehicle for 2-8 months is a no go for me.

Mine is paid off and my dealership hasn't said anything abut getting less n my trade OOPs I better check on that again Yikes,,, cuz what they offered (33,000) is the only way I can get yje new one....

 

[GtX]

On vehicle purchases (aka depreciating assets)? No. I save up and write a check.

This right here.

An asset appreciates in value and/or provides a stream of cash flows.

Vehicles are almost always a liability.

 

[Jeepalady17]

Was just talking about this in another thread. It's a concern, but I won't know for certain until the Jeep comes in and I go in to sign the paperwork. When I ordered in July we ran numbers with the dealer and found terms we could afford but none of that was locked in. I'm hoping that the extra equity I have in my trade-in, plus maybe extending the terms of the loan, will get it back to a monthly payment I can afford.

If and when rates drop again we'll likely look at refinancing.

Yes its a crap shoot right now and as a previous Jeeper stated the value of the used ones are dropping so I hope my dealership won't try to do that on mine cuz then I KNOW there is no way I can get the new Jeep

 

[Jeepalady17]

It’s really a double-edged sword. Not only are interest rates rising, but the used car value is coming down from its inflated state. If you still owe on your trade, you’re getting more for it the longer you wait because you’re still making payments. But the value of that trade may be falling off faster than your payments. I still owe on my trade, I’m paying a lot extra on it ($1000/mo) but the trade in value on KBB has fallen $10,000 since July.

IF I had any decent estimate of when the new Jeep would arrive I’d sell my trade outright. But being down a vehicle for 2-8 months is a no go for me.

Ya, me too but my 2020 unlimited is my only vehicle so I have to keep driving it til the new one comes in.. I downsized to a 2-door..

 

[Jeepalady17]

I have said before, and say again ; get the longest length loan, so that those low monthly payments are affordable in a worst case scenario.
You can pay towards the PRINCIPAL with any surplus money, and pay it off sooner. This protects you against unforeseen circumstances, your choice to get that principal down.

Yes that is what I did with my current Jeep I paid it off in two years but now I am alone and my work has really dropped off so budgeting is getting tight so will see what happens as the time gets closer.. I am in D1 so have no clue as to when my Jeep will be built..

 

[Jeepalady17]

Not for a Jeep but I locked for another car next month at 3.49 for 72 or 2.99 up to 66 at Wellby Financial in Houston just last week. A percentage change shouldn’t make or break your ability to purchase a vehicle IMO. The money costs more to borrow yeah, but it shouldn’t be the difference between you being able to afford it or not like it might on a house.

Well,, between losing my husband and work dropping off every penny counts for me now.... I got a great trade-in on my current Jeep but if that doesn't hold since i have to keep driving it that would definitely kill any chance of buying a new one,,, I downsized to a 2-door

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