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Jeep owner’s intelligence

RussJeep1

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So: did the thread take a bit of a tangent, maybe not even a fun one, maybe even a boring one: sure.

Who wouldn't rather see Jeep Bling than hear arguments about prioritizing spending; getting the feeling that they're being told what to do with their lives?

But it is not some alarmist notion that people are entering into destructive debt (debt which charges more interest than that made with the loaned money) in dangerously high degrees today, nor is it that markets aren't designed to prevent this behavior; which our housing crisis of this century's first decade showed us.

In my opinion Wrangler owners are much more intelligent (this is void of self praise) than other model vehicle owners. In large part we are enthusiasts, and product specialists. Few vehicle designs incorporate as much owner feedback as does the Wrangler. We are enormously resourceful creative and mechanical people with some of the most clever ways of solving problems.

But many of us owe it to ourselves to step back and apply this logic to our spending habits and ask, "what is the future cost of the purchase decisions I make today?" And often, rightfully, the wise buyer WILL purchase those GPCA grab handles: because they're awesome.

It's the ones using one credit card to pay off another that truly concern me and need to be concerned themselves.
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Wanderingwheelz

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So: did the thread take a bit of a tangent, maybe not even a fun one, maybe even a boring one: sure.

Who wouldn't rather see Jeep Bling than hear arguments about prioritizing spending; getting the feeling that they're being told what to do with their lives?

But it is not some alarmist notion that people are entering into destructive debt (debt which charges more interest than that made with the loaned money) in dangerously high degrees today, nor is it that markets aren't designed to prevent this behavior; which our housing crisis of this century's first decade showed us.

In my opinion Wrangler owners are much more intelligent (this is void of self praise) than other model vehicle owners. In large part we are enthusiasts, and product specialists. Few vehicle designs incorporate as much owner feedback as does the Wrangler. We are enormously resourceful creative and mechanical people with some of the most clever ways of solving problems.

But many of us owe it to ourselves to step back and apply this logic to our spending habits and ask, "what is the future cost of the purchase decisions I make today?" And often, rightfully, the wise buyer WILL purchase those GPCA grab handles: because they're awesome.

It's the ones using one credit card to pay off another that truly concern me and need to be concerned themselves.
I’m the one who posted the consumer auto debt chart, and it was simply to get people thinking about making intelligent wise choices in life (Jeep purchase, or otherwise), and what better way to do that than to slap a graphic up that clearly shows the danger consumers are facing (many of them unknowingly) when the recession finally shows up.

I wouldn’t wish it on any of us, but my intent was to prevent Rubicons being whisked off in the dark of night when the repo man is sent by the bank to take back what is no longer being paid for- even if it is only 1 Rubicon, then it was worth contemplating, in my view.

Why do y’all think the stock market is freaking out? It’s because higher interest rates make it harder for consumers and corporations to service their debt. It’s not complicated.

Oh... and one other thing. If you’re driving a brand spankin’ new Wrangler, but you’re leaving you kid(s) to pay for their own college, then you’re an ass****. Sorry... by you are. Get control of yourself.
 
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word302

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PS. Traditional college education is becoming less of a requirement to be successful financially in today's world. I'm not saying college isn't important, but it's not for everyone and definitely not the only path to success.
 

TrailTorque

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You the man.
Really I'm not and would never claim to be but thanks though.

So, I don't generally like speaking on (2) things.

1. Finance
2. Politics

The reason for that is because they are both so highly debatable and really I don't feel like going back and fourth with people on a keyboard.

Disclaimer:
I did not grow up in a wealthy family, I do not consider myself wealthy, I barely have an education (just an AA in general studies).
I have been working since I was 14 years old. I am a Veteran. I am financially sound. I am conservative. I have great credit.

Here's the deal, and I wasn't going to even post in this thread but after reading some of the financial remarks I felt I had to; I have purchased vehicles cash, I have financed vehicles and I have leased vehicles. I have experience with all 3.

There are literally 1,000,000 different ways to manage your finances. That is why I like to use the term "creative accounting".

The comment made that says basically you're an idiot if you didn't pay cash and by not paying cash you just haven't learned to live within your means is garbage. period. I am sure that person must be a Dave Ramsey extremist. While I DO agree with some of Dave Ramsey's budgeting steps, I don't agree with the line of thinking of paying everything in cash, especially vehicles. For most it just isn't logical or possible and even for those that do have that ability to do so still don't choose to do it and here's one of the many reasons why:

*Opportunity Cost*.

There are VERY few vehicles in existence that could be considered an investment where an actual monetary ROI would be generated after or during ownership. A Jeep Wrangler is not one of them. The residuals are great, don't get me wrong. But that fact is, you will not make more money when you go to sell your Wrangler than what you spent at purchase (0 profits). There is no way around this fact and again that's true for a lot of vehicles. Vehicles are a terrible cash only purchase in my opinion (unless you have bad credit). (Side note: There are folks that have bad credit and have plenty of money, Dave Ramsey is one of those and he is a millionaire. Or folks that have had bad credit and ran into money somehow, so-on and so-on.)

Without going much further, and I have done it, paying all cash for a vehicle does absolutely nothing for you in many situations, again, provided you have good credit. People will chime in, I'm sure, and say "well you wouldn't have a payment and paying interest is wasting money"; there is so much more to the equation and options if you have good credit. Understanding Opportunity Cost for most people is extremely hard, especially when all they have been taught growing up is cash first and avoid debt whenever/wherever possible. Generally speaking, a lot of those people (with good credit), in terms of purchasing new vehicles using cash only, have lost so much more money than they will ever realize.

Everyone's situation is different but that doesn't mean we are all poor or ignorant in relation to personal finances.

Semper Fi
 

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word302

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Oh... and one other thing. If you’re driving a brand spankin’ new Wrangler, but you’re leaving you kid(s) to pay for their own college, then you’re an ass****. Sorry... by you are. Get control of yourself.
Pretty sure this statement means you should be doing some of your own self-reflection.
 

plex

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Well, let us do a poll.

A. How many of you financed/leased a Wrangler, because you just simply do not have the cash in your account to buy it upfront.
B. How many of you financed/leased, because you can find better ROI rate with the cash you have.
C. How many of you just buy it with full cash payment, because...you have the cash and do not want to pay interest rate, and cannot find better investment for the cash.

Based on a lot of news I read lately, that average American family do not have enough saving to last two weeks, I suspect A will be at least 80%.
 

plex

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Really I'm not and would never claim to be but thanks though.

So, I don't generally like speaking on (2) things.

1. Finance
2. Politics

The reason for that is because they are both so highly debatable and really I don't feel like going back and fourth with people on a keyboard.

Disclaimer:
I did not grow up in a wealthy family, I do not consider myself wealthy, I barely have an education (just an AA in general studies).
I have been working since I was 14 years old. I am a Veteran. I am financially sound. I am conservative. I have great credit.

Here's the deal, and I wasn't going to even post in this thread but after reading some of the financial remarks I felt I had to; I have purchased vehicles cash, I have financed vehicles and I have leased vehicles. I have experience with all 3.

There are literally 1,000,000 different ways to manage your finances. That is why I like to use the term "creative accounting".

The comment made that says basically you're an idiot if you didn't pay cash and by not paying cash you just haven't learned to live within your means is garbage. period. I am sure that person must be a Dave Ramsey extremist. While I DO agree with some of Dave Ramsey's budgeting steps, I don't agree with the line of thinking of paying everything in cash, especially vehicles. For most it just isn't logical or possible and even for those that do have that ability to do so still don't choose to do it and here's one of the many reasons why:

*Opportunity Cost*.

There are VERY few vehicles in existence that could be considered an investment where an actual monetary ROI would be generated after or during ownership. A Jeep Wrangler is not one of them. The residuals are great, don't get me wrong. But that fact is, you will not make more money when you go to sell your Wrangler than what you spent at purchase (0 profits). There is no way around this fact and again that's true for a lot of vehicles. Vehicles are a terrible cash only purchase in my opinion (unless you have bad credit). (Side note: There are folks that have bad credit and have plenty of money, Dave Ramsey is one of those and he is a millionaire. Or folks that have had bad credit and ran into money somehow, so-on and so-on.)

Without going much further, and I have done it, paying all cash for a vehicle does absolutely nothing for you in many situations, again, provided you have good credit. People will chime in, I'm sure, and say "well you wouldn't have a payment and paying interest is wasting money"; there is so much more to the equation and options if you have good credit. Understanding Opportunity Cost for most people is extremely hard, especially when all they have been taught growing up is cash first and avoid debt whenever/wherever possible. Generally speaking, a lot of those people (with good credit), in terms of purchasing new vehicles using cash only, have lost so much more money than they will ever realize.

Everyone's situation is different but that doesn't mean we are all poor or ignorant in relation to personal finances.

Semper Fi
I too hate this kind of thread (almost like it was OP intended to do so) turned in to a financial-related, and better not turn it to a politic-related later.
 
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drdriller

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Well heck, as the OP I really thought I was complementing Jeep owners. I did not mean to get into any financial discussions. I've read here where members solder diodes and resisters into wiring harnesses they hand made. Come up with all kinds of cool mods to fix issues. Troubleshoot and fix complex mechanical and electrical problems...…. All in all, I think Jeep owners are resourceful and mechanical geniuses..
 

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To OP, bet this isn’t what you thought it was going to be, huh? :facepalm: To quote a line from the movie Stripes, this thread has “ BLOWN UP SIR “ :)
 

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5 years ago if someone financed a Jeep and took the money they would have spent on their Jeep and bought some Amazon stock with it, I'd say that guy was pretty smart!
 

RussJeep1

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Taking financial advice on an internet forum might be the dumbest thing I've heard in a while. Carry on.
In principle (if not principal;)) I'd agree. I can't speak for others. But nothing I've suggested is anything but in lock step with the experts. People need to learn to live within their means, and define "means" consistent with those in the know say, and I merely repeat. To say that we live a country whose population has over-leveraged itself is an enormous understatement.
 

RussJeep1

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5 years ago if someone financed a Jeep and took the money they would have spent on their Jeep and bought some Amazon stock with it, I'd say that guy was pretty smart!
Not to spilt hairs but I might say lucky too. The point is it's foolish to finance the rig to put the money towards a single firm, unless you have insider information about: in which case then said actions (at least in the stock market) are illegal. I think we can agree that such rare anecdotes aren't a battle cry to finance the Jeep and fund the sole company given all the outfits promised to be the next Microsoft that turned out not to be.

Monday morning quarterbacking on investment decisions of days gone by: even I can do that.
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