Jeep owner’s intelligence

RussJeep1

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Clearly debt, in and of itself is neither good nor bad. I'm not suggesting the only way one should be buying a rig is with money out of pocket after paying all of life's necessary expenses (highlighted prior.)

I am suggesting though, and again, it's not my talk, it's that of money professionals, that one should not be buying a rig unless they could do so with money out of pocket after paying all of life's necessary expenses.

The difference between the two is, as mentioned above, that if the prevailing rate at which institutions are willing to pay you for loaning them money is greater than that on a car loan (in which you are loaned the money at a rate you are willing to pay for having been loaned the money) then your best play is to finance the rig.

Doing so not only allows you to keep some of your cash for emergencies, but earns you a higher rate of return than buying the rig outright....

….of course so does, even more so, not buying that brand spanking new JL and taking the savings to investments.

And sure, there are those who, like soldiers discussed above, have just come back from a war zone, or sick owners without the greatest of health prognoses, or people living in the moment (saving too much is just as bad sometimes: as you can't "take it with you") that, as long as they do so in moderation make a decent argument for "you only live once."

Heck, just coming out of college?...take out a loan for absolutely no reason other than to pay it back on or ahead of time and establish a (good) credit rating.

But the sad thing is that some just don't get it. Their idea of affording is, "can I make the monthly lease payments without going (further) into debt."

And James @Turfman: you're right, speculate stock purchases over the short term certainly make the Wrangler purchase seem more palatable. But we should not be betting against the market, timing our entry and departure from this market, but rather sticking that $ in managed stock funds for no less than 5 years: the amount of time window the stock market has always been historically up within.

#financemustbetaughtinHS





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DaltonGang

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I love how many members brag about how they are able to just plunk down $50, 000 + on their Jeep Toy. Poor taste, to brag, in this roundabout way. Many here aren't fortunate enough to do that. I don't think they are less intelligent for financing their Jeep. But I do question how wise it is, to lease one, or to finance with high interest. Myself, I was able to get 1.9 percent interest. So, instead of plunking down for a large portion, or the entire portion, i went with this. This is because my money, in my accounts earn more than 1.9 percent. Along with this low interest loan, it comes with a disability policy. If I become injured, at work, my loan is paid for, as long as I am unable to work, or if I am injured, and am unable to return to work, the entire loan is paid for. I have used this, in the past, for about 6 months, and I've known several people who have had several vehicles paid off, after being injured, and forced to be medically retired.
 

Chocolate Thunder

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I love how many members brag about how they are able to just plunk down $50, 000 + on their Jeep Toy. Poor taste, to brag, in this roundabout way. Many here aren't fortunate enough to do that. I don't think they are less intelligent for financing their Jeep. But I do question how wise it is, to lease one, or to finance with high interest. Myself, I was able to get 1.9 percent interest. So, instead of plunking down for a large portion, or the entire portion, i went with this. This is because my money, in my accounts earn more than 1.9 percent. Along with this low interest loan, it comes with a disability policy. If I become injured, at work, my loan is paid for, as long as I am unable to work, or if I am injured, and am unable to return to work, the entire loan is paid for. I have used this, in the past, for about 6 months, and I've known several people who have had several vehicles paid off, after being injured, and forced to be medically retired.
It’s amazing how many of these self proclaimed financial geniuses who are proud that they plopped down $40-50 cash on a depreciating asset that is not an actual necessity for over 90% of us (a guess) don’t seem to comprehend this concept, isn’t it? I guess these same people think that super wealthy, financially savvy individuals use their own personal huge piles of cash when they undertake multi million dollar projects. The concept that just because I’m able to purchase with cash doesn’t mean it’s necessarily wise to do it doesn’t resonate with some people.
 

Wanderingwheelz

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Cash isn’t always the “smartest” move. Use your cash on hand for a return and finance at a low rate. I’m surprised at the amount of people who don’t understand this.
If you are in the lunch room at Goldman Sachs, then I can see how that is a valid conversation, or argument.

The fact of the matter is almost all new car buyers borrrow money to make the purchase because they don’t have the money to buy the car they want.

Using “your cash in hand for a return” is assuming you can get a risk-free return that’s substantially higher than the rate of interest on your car loan. If you look at risk-free short-term treasuries you’ll quickly see that it’s better to just pay cash for a Wrangler, assuming you have the cash and you can afford to tie it up for as long as you own the Jeep.

I know there’s a certain type of person who finances as much a she can to free up cash to buy AMZN at $1500, but that’s not a risk-free alternative to cash since it won’t be too much longer before it’s closer to $1000.
 
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Wanderingwheelz

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It’s amazing how many of these self proclaimed financial geniuses who are proud that they plopped down $40-50 cash on a depreciating asset that is not an actual necessity for over 90% of us (a guess) don’t seem to comprehend this concept, isn’t it? I guess these same people think that super wealthy, financially savvy individuals use their own personal huge piles of cash when they undertake multi million dollar projects. The concept that just because I’m able to purchase with cash doesn’t mean it’s necessarily wise to do it doesn’t resonate with some people.
Would you like to take a wild guess why high priced real estate is tanking in America, particularly in resort areas? Hint: it has something to do with super wealthy, financially savvy individuals and how they use their own personal huge piles of cash.
Good thing I’m only 32 then haha I own outright a home in Pensacola and have (2) rentals in NC. Make north of 150k a year. Doing pretty good. Dave Ramsey is the only person I know of that doesn’t finance anything. I guess I haven’t seen the light yet though.

PS

I financed mine. #CreativeAccounting and not in a bad way haha
You the man.
 

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Man.... this thread sure turned weird, I thought we were being funny? I mean no disrespect but for me it’s none of my business how someone buys there Jeep or spends their money, frankly I don’t want to know, the important thing is we’re all enjoying our ability to own one and enjoy it. But that’s just one old mans opinion.
 

plex

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Man.... this thread sure turned weird, I thought we were being funny? I mean no disrespect but for me it’s none of my business how someone buys there Jeep or spends their money, frankly I don’t want to know, the important thing is we’re all enjoying our ability to own one and enjoy it. But that’s just one old mans opinion.
You know when people getting old and they have nothing to do but whining on how youngsters are not responsible? This is exactly that.

Source: am old.
 

Shots

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It's controversial but I'll say it.

Let's assume you are correct. If so then my concern lies with intelligence correlating with wise decisions.

Nobody likes to hear this because we all want "stuff," now; me too. But if I had a wish of the owner, without telling them what to do, with each piece of bling, including the JL itself I'd ask them to ask themselves:

* Do I have good life insurance to protect my family if I die?
* Do I have 6 months of cash reserves in case I fall on hard times (this is money experts talking, not me)?
* Have I paid off the credit card debt?
* Are my kids 529B plans adequately funding for when their need the money for higher education?
* Have I adequately contributed to my retirement given my distance to retirement?

This list has more items.

.....
I absolutely abhor that today's society feels this is a responsibility of the parent. If you're well to do, and you can fund you're child education, that's great. Why is it considered a requirement of the parent to pay for college though? Why do parent's feel guilty, and or suffer to pay for adult education? This is particularly true for families with multiple children.
The kids are adults by that point. It's time to man/woman up and be responsible for themselves. The free ride ends at at 18 folks. The GI Bill, and a few student loads (which took a few years to pay off) paid for my higher education. When you're the one footing the bill, you're a lot more inclined to study rather than go to that party on Friday night. Plus you'll have more appreciation for what you've accomplished.

Don't get me wrong. I don't disagree with helping your kids out, even when they're adults. I get that we're going to do everything we can to assure our children have a better life than we did. At some point, that "better life" is teaching them appreciation and responsibility. It may cause them struggles, but adversity makes us stronger. How many of you out there in the over 40 crowd had your parents pay for you college? If I was a gambler, I'd bet very very few did. Yet we all survived it. Not everyone gets a trophy, and you have to WORK for the things that you want. Especially the things that are worth having.

In the end, I don't really disagree with your post. I just don't think that paying for your kids college is something that should be on your list of things you must to do be responsible. Their education is on them. I don't know how society has gotten to the point that it's on the parents.

... I don't think they are less intelligent for financing their Jeep. But I do question how wise it is.....
Ah, and THAT is the key. Wisdom and Intelligence are two very different things. Intelligence is the ability to learn/remember facts and information. Wisdom is the soundness of applying that information and/or experiences.
An intelligent person may know that gravity accelerates an object at 32.2 ft/sec², which means they'll hit the ground at roughly 36 fps if they jump off a 20 foot tall roof. Yet they still jump.
A wise person knows that hitting the ground after jumping off a 20 foot tall roof is going to hurt, whether they know the landing speed or not. So they don't do it.

You can be intelligent without being wise, there's a big difference. Just because you may understand compound interest, doesn't mean you're wise enough to be financially responsible. Therefore, I'll propose that the OP's statement of Jeep owners being intelligent, could still hold true. Though from the prior posts, it sounds like we're not the wisest bunch. ;)

Just having a little fun there guys/gals. I'm not singling anyone out, I'm not calling anybody foolish. It's meant as humor, just like the posts that said "we smart" or something similar.
 

tyresmoker

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I beleive we is way more smarter then those on the Tesla's and Priuses message boreds.
 

plex

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I’m not sure if this is meant for me but you must of misunderstood my post if it is, let me put it another way, I don’t give a shit how someone spends or makes their money. None of our business, hows that.
I am sorry I must not use the correct quote button, this is not meant to reply your post but a general assessment of the thread overall. HAGD!
 

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JIMBOX

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Heh Heh, one of the reasons I'M OLD is because I've gotta LOT TO DO--and

Having a JEEP is the main reason !

I'm going on my 26th year of RETIREMENT and the jeep provides me with NEW IDEAS/ENTERTAINMENT/IMPROVEMENTS-

That's my story and I'm sticking with it-

JIMBO
 

RussJeep1

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I absolutely abhor that today's society feels this is a responsibility of the parent.
I completely respect this Winchell. I might suggest that before buying a JL that money be socked away for such things. I suppose we are all affected by our experiences. I wasn't a product of the GI bill, although my dad was. I fell obliged to, and want to pay forward the education and sacrifices my parents made for me. College loan debt is already out of hand. But I did have an employer pay for my advanced degrees.

Why is it considered a requirement of the parent to pay for college though?
I don't think you're looking for an answer so much as making a rhetorical argument here, but the thing most parents think is: to do what they can to make their children self sufficient: a college degree in this day and age being in large part a prerequisite to same, to pay forward the sacrifices their parents made.

When you're the one footing the bill, you're a lot more inclined to study rather than go to that party on Friday night. Plus you'll have more appreciation for what you've accomplished.
You're right. If I felt my kids were taking advantage I'd threaten to cut off funding.

Don't get me wrong. I don't disagree with helping your kids out, even when they're adults.

I fully get that. Your not saying parents shouldn't pay, particularly if they can, you're drawing distinction between choice and necessity that parents provide such funding.

My wife and I limited the number of children we brought into the world based upon such financial decisions but that's not for everyone. Religious beliefs to be fruitful and multiply, and notions that college is not a parent's obligation are absolutely sound ones too. In an agarian economy of times past, children to work the land were our social security, not our debit burden.

I get that we're going to do everything we can to assure our children have a better life than we did. At some point, that "better life" is teaching them appreciation and responsibility.

Amen. I've often said that people should judge me as a parent by the extent that I have brought responsible independent honest and caring children to adulthood.

It may cause them struggles, but adversity makes us stronger.
In measured dosages I agree. Wind makes the tree stronger, but when too excessive, it can also destroy it.

How many of you out there in the over 40 crowd had your parents pay for you college? If I was a gambler, I'd bet very very few did. Yet we all survived it. Not everyone gets a trophy, and you have to WORK for the things that you want. Especially the things that are worth having.
I hear this. But the flip argument is that of those whose parents did pay for their collegiate costs, how many would feel comfortable spending on themselves rather than their kids. I wouldn't/don't.

…..and yet the funny thing Winchell is that in today's financial aid climate, things like vehicles aren't factored into the student aid package--which is absurd. Save all these years and do without the fancy vehicles: no financial aid for you, you have "too much money" saved. Spend on fancy vehicles and have less to show towards your kids college: greater financial aid is offered. It's a darn shame.

In the end, I don't really disagree with your post.
I get that. Your thesis is more about where choice ends and obligation begins for parents to pay for their kids collegiate education and why. Even those parents that buy for themselves rather than pay for school, who paved their own way have every right to say, "I made it on my own, and so should you."

We enjoy a better standard of living, on average than those who came before us and struggled so we could. Many of us, present company included, pay homage to this by repeating it for our kids.

I just don't think that paying for your kids college is something that should be on your list of things you must to do be responsible.
I wholeheartedly agree except in situations where your parents did for you, and your spending the money on pleasure items for yourself rather than paying if forward to tax deferred savings accounts for your kid's future. Sadly, financial aid calculations suggest, as discussed above, that my plan, while I hope morale, is wickedly financially flawed.

Their education is on them. I don't know how society has gotten to the point that it's on the parents.
Once upon a time a HS degree got you what a 4 year collegiate one gets you today. We live in a more complex society today requiring more education on the part of our kids for them to be independent. With those changes, responsibility tilted onto the parents.

Ah, and THAT is the key. Wisdom and Intelligence are two very different things.
Aren't they?! Intelligence is being in possession of the facts, wisdom is drawing sensible conclusions from them. The morbidly obese physician shows us that one doesn't necessitate the other.

Intelligence is the ability to learn/remember facts and information. Wisdom is the soundness of applying that information and/or experiences.
An intelligent person may know that gravity accelerates an object at 32.2 ft/sec², which means they'll hit the ground at roughly 36 fps if they jump off a 20 foot tall roof. Yet they still jump.

Yep


A wise person knows that hitting the ground after jumping off a 20 foot tall roof is going to hurt, despite not knowing the landing speed, so they don't do it.

You can be intelligent without being wise, there's a big difference. Just because you may understand compound interest, doesn't mean you're wise enough to be financially responsible. Therefore, I'll propose that the OP's statement of Jeep owners being wise, could still hold true. Though from the prior posts, it sounds like we're not the wisest bunch. ;)

Just having a little fun there guys/gals. I'm not singling anyone out, I'm not calling anybody foolish. It's meant as humor, just like the posts that said "we smart" or something similar.
No offense taken. I think you make wise points. In our ever growing materialistic world, where objects are more becoming that sought after, where, quite literally mental health experts have had to redefine the criterion for Narcissistic behavior to higher standards, for if they didn't, too many people would meet the criterion, you're points are well made.:)
 

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