Not taking a loss is a rare event when talking about vehicles for sure. Life is short - enjoy it.Right on! If it’s makes financial sense then it’s a good decision.
ironically people who borrow $50K at less than 1-3% interest are wiser than those who pay $50K cash for a car typically, when you can make much more interest on investing itTrying to find the relevance of this sentence. So if someone paid cash for their Jeep your neighbors will care what they think?
1. No, but I do see many people stretching to buy some things they can't afford. They do it for many reasons, but concern about looks/what others think is frequently mentioned on this forum. At the same time, I also see people who can afford the higher trims but chose not to buy them, either because the lower trims provide them sufficient value, they are choosing to live beneath their means, or they have better uses for their capital. In my case, I've always lived beneath my means because that's how my parents raised me, I invested my savings as a teenager into stocks and eventually real estate, and I always refrained from spending too much on cars. Millionaire Next Door and Dave Ramsey were big influences when I was younger. I've never had a car note in my life, and my first job out of college paid only $18k/year. Now that I'm at the point where I can afford to pay cash for anything within reason, I choose not to do so because I don't really need anything. I have a happy family, we have great trips together, I don't care for flash, and I value my financial freedom. I have what few people in the country have: enough. I wish more Americans would quit putting themselves in a financial bind over silly stuff, but financial rationality often gets trampled by the "who cares, just borrow and worry about it later" crowd here.I think that what you are trying to say, based on your well to do hood experience, is that a person who is not as rich (and in fact most people on this forum) would only buy a rubicon as they are trying to exhibit an image of having more money than what they do / to appease some online forum envy?
i'm willing to bet that the sport or saharas they are tooling around in up to their cabins are a nice 2nd or 3rd vehicle for them also
1. 1-3% can still be an unattractive rate, especially when "real" inflation adjusted interest rates are currently negative and Jeep is offering 0% to anybody who can fog a mirror. Your financial situation may be different than mine. With respect to "much more interest," it's hard to do so without shouldering extra credit or interest rate risk, as saving accounts are yielding below 1% and Treasuries are closer 1.5%. To earn higher rates, you have to be willing to accept default or interest rate risk. There is no free lunch in the markets, but you do get to choose where to eat.ironically people who borrow $50K at less than 1-3% interest are wiser than those who pay $50K cash for a car typically, when you can make much more interest on investing it
Excellent analysis including the taxes and fees expenses (I think many people ignore these costs). I usually wouldn't recommend buying a new car 6 months later, but I would do this deal if you want the Rubicon. It makes financial sense and your Rubicon's resale value should be higher than the cost difference between your current Willys.My Willys:
MSRP - $45,730
Discount - ($2,650)
Doc - $449
Tax/tag - $1,524
Rebate - ($500)
$44,569 OTD and 36mo @ 0%
Rubicon from Gupton:
MSRP - $51,460
Discount - ($6,579) 8% under invoice
Doc - $499
Tax/tag - $2,058
How did the Vroom process work, if you don’t mind me asking? I got an amazing quote from them, but the idea of sending my Jeep away and waiting for a check is making me nervous.Super interesting with those lumber prices - just seems like a lot of unstability / uncertainty out there when you have stuff like that happening. I saw that article in the WSJ of people shifting their spending from goods to services also.
I agree with you that people shouldn't be getting in over their heads with using some government check they received to finance a vehicle. Having said that I'm a firm believer in there is a right place and fact pattern for financing. Even a depreciating asset - and while what we are seeing now is not the norm - the wrangler, in particular the Rubi has historically held it's value well for a depreciating asset.
I sold my JL on Vroom - made complete sense to do it, and have another one on order. Sometimes opportunities present themselves and if you've positioned yourself well you should take advantage of them.
hi. Yes I was super nervous too - that they would change the price etc. Worked out though, maybe took a bit longer than I’d hoped. Check was issued very quickly though once they had it.How did the Vroom process work, if you don’t mind me asking? I got an amazing quote from them, but the idea of sending my Jeep away and waiting for a check is making me nervous.
So they offered you more than the original appraisal? Did you ask for another appraisal, or did they just offer an additional 4K?hi. Yes I was super nervous too - that they would change the price etc. Worked out though, maybe took a bit longer than I’d hoped. Check was issued very quickly though once they had it.
I posted this somewhere on here
Thought I’d share my Vroom story for the sale of my 2021 JLU Rubi. The short story:
- sold it to Vroom for more than I paid for it 18 months ago at $54,000!
- processing took longer than I’d expect (see timeline below), but worth it for $4K more than Carvana or CarMax
- happy with the outcome, would use them again (if not in a rush)
1/15 - Carvana appraisal - $40,100
4/19 - Carvana appraisal - $50,100
4/19 - CarMax appraisal - $49,000 - had to go into the store
4/19 - Vroom appraisal - $49,500
4/22 - Day before appraisal expires an increase of $500 to $50,000
The final deal:
4/23 - Vroom appraisal - $54,000
4/30 - accepted appraisal, sent in my details
5/7 - requested for more information, the back of my DL
5/12 - paperwork to sign for the sale - a one page doc that needed a signature
5/18 - carrier assigned for pick up
5/25 - picked up
5/27 - check sent by FEDEX
5/28 - check received
The quotes they give you normally last a week. I let it lapse, then asked for a new quote the next day.So they offered you more than the original appraisal? Did you ask for another appraisal, or did they just offer an additional 4K?