Interest rates

[Oncorhynchus]

Manufacturer’s financing looking pretty good, eh?

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[COJeeper]

This is probably going to sound harsh but if you can't save up $55K to buy a new Jeep then you don't buy a $55K Jeep (regardless of the whole cash vs. financing question).

Good point and I somewhat agree. Also, who cares if you're harsh, I'm a big boy, you won't make me cry and if you do, who cares, not your problem. :D

I guess theoretically I could save up $55k to buy a new Jeep and pay cash. However, it would take 4-5 years and in the mean time I'd be blowing money on a Subaru Outback that even if I dropped $30k into it, it still wouldn't match the capability of my Jeep. On top of that, how much stuff would I break on the Subaru trying to get to cool places to camp? I'm old, I don't have 4-5 more years of life in me probably.

In my case, it made a lot of financial sense to spend about $1400 over 5 years in interest to get it now. I'd spend much more than $1400 putting further armor and mods and fixing things I broke on the Subaru.

I'm all about the "if you don't have money, don't buy it" ideology though. This is, generally speaking, how we live now.

 

[COJeeper]

Manufacturer’s financing looking pretty good, eh?

That's because no one wants a Wagoneer... hahah

I've never seen them do 0% for 72 on a Wrangler, don't think it'll ever happen either. High demand, they don't have to.

 

[Heimkehr]

how is this any diff than saying "if you cant save 250k to buy a house then you shouldnt be buying a house"

It's a matter of scale.

Consider the discretionary income (edit: of an average white collar salary in 2022) that remains available for saving up for a vehicle versus doing the same for a single family residence. Even a relatively pricey vehicle will cost an order of magnitude less than will said residence. Consider also the attendant effect on the amount of time required to accumulate enough cash to purchase either.

Homes have indeed historically been appreciating assets -- the real estate market over the past 18+ months has made this fact unignorably plain -- and don't really bear comparison to the matter of financing the purchase of something as fungible as an automobile. Having a roof over our heads, in any form, will always be more important than the brand of vehicle that we want to see sitting in the driveway.

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I've agreed with every post you've contributed to this thread, Junior, but we'll have to part ways a bit on this one.

 

[Craigger]

Good point and I somewhat agree. Also, who cares if you're harsh, I'm a big boy, you won't make me cry and if you do, who cares, not your problem. :D

I guess theoretically I could save up $55k to buy a new Jeep and pay cash. However, it would take 4-5 years and in the mean time I'd be blowing money on a Subaru Outback that even if I dropped $30k into it, it still wouldn't match the capability of my Jeep. On top of that, how much stuff would I break on the Subaru trying to get to cool places to camp? I'm old, I don't have 4-5 more years of life in me probably.

In my case, it made a lot of financial sense to spend about $1400 over 5 years in interest to get it now. I'd spend much more than $1400 putting further armor and mods and fixing things I broke on the Subaru.

I'm all about the "if you don't have money, don't buy it" ideology though. This is, generally speaking, how we live now.

Yes, I'm not necessarily saying that everyone should save up the cash to buy a new car. I was reacting to the statement "I don't think I'd be able to save up $55k to buy a new Jeep." If that were the case I'd say it's too much car for your budget but you explained above that you weren't speaking literally.

That being said, the way I allocate my budget has nothing to do with how anyone else does. Besides that, driving off-road in a Jeep definitely saves on the therapist fees .

 

[Astheros]

If i personally only rented, i'd be missing hundreds of thousands of dollars right now. And that's on personal homes - i'm not in the business or anything. You can make a lot of money on smart real estate purchases and sales. I'd highly recommend you look into real estate opportunities in your area or look into moving to a developing town/area with those opportunities. You can do great on houses ?

I own a multiple family that i rent out and rent an apt in a nice neighborhood for myseld. SINGLE FAMILY homes were YOU reside are by and large liabilities not assets.

 

[COJeeper]

I think we should start a thread here on "how to invest in real estate". You need capital to start and I'm still trying to build up $30k in a rainy day fund. At this point though, with where rates are and cost of homes, I don't know if it's necessarily a good time to be entering that market. Definitely great for those who have had properties for a while though!

I need to win the lottery.

 

[Opus]

I need to win the lottery.

That's been my investment strategy since the 90s... any day now...

 

[COJeeper]

That's been my investment strategy since the 90s... any day now...

I only buy 10-20 tickets when it's above $500M. I then rally the troops and 5-10 of us "invest" in the 401M (Mike) plan. Greatly improves my odds from 1:3000000000 to 1:2999999990, I feel like I have a real shot this time!

 

[Cunky]

I own a multiple family that i rent out and rent an apt in a nice neighborhood for myseld. SINGLE FAMILY homes were YOU reside are by and large liabilities not assets.

Yet the homes are classified as personal use assets and have historically appreciated in value. Not to mention that you can utilize the equity in these homes as collateral for loans, further identifying them as assets. This sounds like a Youtube finance guru one-liner and is simply untrue. The mortgage is a liability for sure, backed by a real appreciating personal use asset.

House-hacking is phenomenal though, happy for you that it's working out.

 

[Cutterone]

Remember, in the end, everything we do...is just everything we've done...

 

[UniqueUserName]

even PennFed is showing 5.5. for 60 months at this point(as a premier credit rate)

Yea, I saw that that! When I bought my F150 back in 2018 I took the dealer financing to get the 1K credit at purchase, then did a quick refi through PenFed (they almost always have some of the lowest rates and are good to deal with). I paid it off in under two years. Their rates aren't so great at the moment. I paid cash when I bought my JLUR this spring. I bought a Honda Civic back in 1982 and the rate I had at that time was over 24% (seems to be the direction we're headed), of course the OTD cost was just over 6K at the time.

 

[CorbinKnox]

I got 3.89 for 72 mo. through my bank which is lower than what they are advertising for my state. Figured I would have my financing ready with them unless dealer can secure something better. But these days, highly unlikely unless Stellantis is offering incentives which I'm not seeing online unless you lease.

Also in Oklahoma and am about to refi - what bank did you use to get 3.89%?

 

[okjeeprox]

Also in Oklahoma and am about to refi - what bank did you use to get 3.89%?

I went through Bank of America since I bank with them. When I purchased at the dealership they typically want to run their financing "to see if you get a better rate". The guy wouldn't touch mine, said he hadn't seen a rate come back like that in months on dealer side and recommended I keep the financing/rate I secured.

 

[Semivies]

I went through something similar a few months back and ended up looking into bridging loans Edinburgh while sorting out my financing. It gave me a bit of breathing room to figure out the dealer's options without having to rush. Rates were alright, and it helped me not feel pressured into taking whatever the dealership was offering on the spot.

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