Interest rates

[rcadden]

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.

100% this. Calculate the monthly that you're comfortable making, then finance for as long as you possibly can. You'll have a lower "required" payment so you just pay the original payment, and the extra goes to your principal.

So...let's take $50K at 6% interest.

36 months = ~$1.5K/mo
72 months = ~$830/mo

Aside from that fact that you can often get better interest rates for longer contracts, if you take the 72 month agreement but pay $1.5K/mo, you've got ~$700/mo going straight to your principal. You'll actually pay the loan off in ~37 months, but save yourself nearly $5K in the process.

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[Craigger]

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.

Almost as if they were trying to bring down demand .

Yes, the days of essentially free money are coming to an end...

 

[Jeepalady17]

Since you own your 2022 JLU Sport outright, economic times are uncertain, work is dropping off, would it pay to keep your 2022 ? It should still be under factory warranty, you have it set up the way you like it.
There will always be a " Deal " in the future, a paid off JLU is a good hedge against inflation, enjoy it.

Problem is I have such bad arthritis now I can't manage the manual widows etc and with a 4" lift its hard to get in and out (sucks to get old) and the smaller 2-door with power windows, etc makes more sense for me now so that was the main reason,, but the way its going I ight just end up keeping my current one and just power thru the pain... I'm pretty tough LOL

 

[Wranglin'n'Danglin]

Personally I'd avoid financing a vehicle purchase. If a 1-2% percent change in interest rate will make or break your purchase then its probably not meant to be just yet. Don't make owning a certain vehicle (or anything!) tough on yourself!

Its been a bit more than just 1-2%.

When I began the journey to purchase, my pre-approval was sitting at like 3.9% earlier this summer.

Now, with last week's fed announcement, there's a good chance interest rates will be at 7%+ by the time my vehicle comes around and I can finance.

Thats nearly double and would absolutely impact my desire to purchase. I can afford it, but the question is less about what I can afford and more what I'm willing to dive into financially. There's no telling if and when rates would fall closer to 3-4%, so I cant rely on a refi either.

This would impact my ability to save and thats not something I'm comfortable giving up.

 

[Pig-Pen]

Problem is I have such bad arthritis now I can't manage the manual widows etc and with a 4" lift its hard to get in and out (sucks to get old) and the smaller 2-door with power windows, etc makes more sense for me now so that was the main reason,, but the way its going I ight just end up keeping my current one and just power thru the pain... I'm pretty tough LOL

have the same jeep as you and was also thinking about upgrading. eventually i came to my senses. $20k+ to just to get power windows lol.

have the lift removed if its too high for you. put in stock rubi suspension or maybe a 2" lift. do you have side steps? i have/need them for my jeep.

are you rolling down your windows that much? just the drivers side while driving? i understand the want for a nicer jeep but think and long and hard if its worth the $$/hassle especially since your jeep is paid off (mine too). if the timing is not right right now (its not for me either lol) just wait for a while and see how/where things go with the economy. you said work is slow and if a couple of interest points are a make it or break it factor than it sounds like its too much of a risk imo. just think about any little thing that comes up where you may need a grand or two and you cant do it due to your car payment. right now, you have NO car payment. your jeep is practically brand new, and it works. it may not be perfect but its still a great vehicle. that's how i see mine.

if you need to do it then so be it. check out Logix credit union. we've had good rates with them.

 

[Hennessey17]

I got 3.39 with a credit score of 802 last December to finance $33k. I was expecting to get about 2.69% at the time. I was unhappy about it, but the difference was `$10 a month. I'm scared to think what I'd get now.

 

[Craigger]

Its been a bit more than just 1-2%.

When I began the journey to purchase, my pre-approval was sitting at like 3.9% earlier this summer.

Now, with last week's fed announcement, there's a good chance interest rates will be at 7%+ by the time my vehicle comes around and I can finance.

Thats nearly double and would absolutely impact my desire to purchase. I can afford it, but the question is less about what I can afford and more what I'm willing to dive into financially. There's no telling if and when rates would fall closer to 3-4%, so I cant rely on a refi either.

This would impact my ability to save and thats not something I'm comfortable giving up.

In general, I agree with the sentiment to have cash on hand to buy any depreciating asset. When interest rates were down around 2%, it made sense to take advantage of that to invest the cash-on-hand. Now, with the interest rates up around 6-7% and going up - no longer makes sense to borrow if you can get away with not.

That's the ideal - I know not everyone can or wants to follow this way of thinking.

 

[Some Random Guy]

I did that with my Tundra. Took a 72 month loan and had it paid more than a year ahead. My AC went out and it cost me 10 grand to replace it. It was good not having to make a truck payment for a year while I paid off the AC unit.

This method depends on the lender. Some let you “pay ahead” and then stop payments if you’re far enough ahead, some don’t. So if someone is thinking like this ask the lender for clarity. NFCU still does this, but last time I dealt with WF they stopped around 2012. Each billing cycle was a clean slate with a new minimum due, you just moved up the maturity/payoff date.

 

[Old Dogger]

Unless money is not a issue for one, I for one would not be buying anything, but what is currently needed to survive. The current world economy is not looking very good. And may just keep going down hill for quiet some time. I was going to purchase a 392. Our local dealer has three of them currently. I don't need to finance, because we pay cash for everything. But I for one, just don't feel that the timing is right.
As for financing, why not just save your money, then pay cash down the road. But everybody to their own.......

 

[Some Random Guy]

In general, I agree with the sentiment to have cash on hand to buy any depreciating asset. When interest rates were down around 2%, it made sense to take advantage of that to invest the cash-on-hand. Now, with the interest rates up around 6-7% and going up - no longer makes sense to borrow if you can get away with not.

That's the ideal - I know not everyone can or wants to follow this way of thinking.

There’s still some niche cases involving maximum IRA/401K type contributions annually. If you lower or quit contributing you can never make that up and now in future years would have to expand to brokerage accounts. But that’s a topic for a financial advisor, lol, not us. Totally irrelevant if you’re not already maxing annual contributions.

 

[entropy]

In general, I agree with the sentiment to have cash on hand to buy any depreciating asset. When interest rates were down around 2%, it made sense to take advantage of that to invest the cash-on-hand. Now, with the interest rates up around 6-7% and going up - no longer makes sense to borrow if you can get away with not.

That's the ideal - I know not everyone can or wants to follow this way of thinking.

Bingo. When buying a new vehicle you must have the cash. If interest rates are low. Keep some of the cash, get the rate and throw your cash into an ETF.

If interest rates are high, like right now. Try to NOT buy a car. If you absolutely have to, pay cash.

That's what I do. And your vehicle expenses end up being really low, what they should be as you should buy what you can afford. I have a 2020 Camry that I got 1% interest rate when car manufacturers were giving them away (2020 summer). My 2019 JL is paid off. So my car payments are $250 a month and that's it (Camry) while the money is invested.

I am holding to my vehicles, it is just not the right time to buy a car unless you absolutely have to.

With that said.

YOLO.

 

[Heimkehr]

Problem is I have such bad arthritis now I can't manage the manual widows etc and with a 4" lift its hard to get in and out (sucks to get old) and the smaller 2-door with power windows, etc makes more sense for me now so that was the main reason,, but the way its going I ight just end up keeping my current one...

Power windows can be retrofitted to a Wrangler Sport with crank windows. There's a thread or three floating around on this forum that document the DIY effort to do so. You also have the option of paying to have the work done. Doing it either way would be much less costly than would buying another vehicle simply to gain a window switch pod on the dashboard. Just a thought.

 

[Jeepalady17]

have the same jeep as you and was also thinking about upgrading. eventually i came to my senses. $20k+ to just to get power windows lol.

have the lift removed if its too high for you. put in stock rubi suspension or maybe a 2" lift. do you have side steps? i have/need them for my jeep.

are you rolling down your windows that much? just the drivers side while driving? i understand the want for a nicer jeep but think and long and hard if its worth the $$/hassle especially since your jeep is paid off (mine too). if the timing is not right right now (its not for me either lol) just wait for a while and see how/where things go with the economy. you said work is slow and if a couple of interest points are a make it or break it factor than it sounds like its too much of a risk imo. just think about any little thing that comes up where you may need a grand or two and you cant do it due to your car payment. right now, you have NO car payment. your jeep is practically brand new, and it works. it may not be perfect but its still a great vehicle. that's how i see mine.

if you need to do it then so be it. check out Logix credit union. we've had good rates with them.

YOU MAKE A LOT O SENSE!! will probably go that route

 

[Jeepalady17]

Power windows can be retrofitted to a Wrangler Sport with crank windows. There's a thread or three floating around on this forum that document the DIY effort to do so. You also have the option of paying to have the work done. Doing it either way would be much less costly than would buying another vehicle simply to gain a window switch pod on the dashboard. Just a thought.

Hey I didn't know that I will ask at my 4-wheel shop that did all my mods. I am sure they could do it if that is the case MANY thanks

 

[Jeepalady17]

have the same jeep as you and was also thinking about upgrading. eventually i came to my senses. $20k+ to just to get power windows lol.

have the lift removed if its too high for you. put in stock rubi suspension or maybe a 2" lift. do you have side steps? i have/need them for my jeep.

are you rolling down your windows that much? just the drivers side while driving? i understand the want for a nicer jeep but think and long and hard if its worth the $$/hassle especially since your jeep is paid off (mine too). if the timing is not right right now (its not for me either lol) just wait for a while and see how/where things go with the economy. you said work is slow and if a couple of interest points are a make it or break it factor than it sounds like its too much of a risk imo. just think about any little thing that comes up where you may need a grand or two and you cant do it due to your car payment. right now, you have NO car payment. your jeep is practically brand new, and it works. it may not be perfect but its still a great vehicle. that's how i see mine.

if you need to do it then so be it. check out Logix credit union. we've had good rates with them.

I forgot to answer your question. Sorry I don't have the side steps but if I keep it I need to put some in that will make it easier to get in besides my stepstool LOL which is embarrassing....

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