Someone talk me out of trading in..

[NewGladdyOWNR]

So I’ll preface this by saying I wasn’t looking to trade in, but I found a used 2021 Jeep Gladiator Rubicon with 10k miles on it...in what appears to be pristine condition. MSRP is $46k..So I bit and did the usual dealer quote via online and the next day received a phone call. They’re offering me $36,540 for my current Jeep Overland, I owe $28K but somehow they’re going to knock off a couple thousand off MSRP for me to put $10k down. Here is where I’m torn; Interest rates..the best I can get at the moment is 6.99% with the way the market is however, my current rate is 3.75%. Keep in mind, they worked it out to where my payments would be $20 less monthly than I’m paying now(big whoop), with only 1 additional year added to my current loan. Would it be in my best interest to keep my current jeep and continue to accrue more positive equity before trading in? Or will 2021 MY’s depreciate heavily now there are new MY’s with new tech? Am I a fool for getting out of a 3.75% interest rate and into a 6.99% interest rate? I hate thought of giving the banks any more free money than they deserve, but is this deal too good to pass up? Help!

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[Jefe1018]

Do you have the listing for the Jeep you want to buy? What would it give you that your current rig doesn’t?

For $10,000 you can probably do lockers, a sway bar disconnect and gears with some money to spare.

 

[Hootbro]

Honestly, it seems you are more worried about chasing a payment vs. getting the best price for the purchase vehicle and that is kind of being in a bad spot that most money managers would tell you to stay with what you have.

This seems like a want vs. need scenario. You have to ask yourself if the capabilities of the Rubicon are what you need vs. what you want?

 

[High Alextude]

How big was your original loan? Owing 28k is still a lot, no way I’d add on more car debt than that. Maybe you should sell and buy a civic! lol jk. Debt is evil.

 

[NewGladdyOWNR]

Do you have the listing for the Jeep you want to buy? What would it give you that your current rig doesn’t?

For $10,000 you can probably do lockers, a sway bar disconnect and gears with some money to spare.

Overland to Rubicon so everything you mentioned in the bottom of your reply. For the amount of money I’ve dumped into my current truck and 10k for lockers, sway bar and gears I could’ve bought two Rubicons lol. Hindsight is 20/20 though.

 

[NewGladdyOWNR]

How big was your original loan? Owing 28k is still a lot, no way I’d add on more car debt than that. Maybe you should sell and buy a civic! lol jk. Debt is evil.

An auto loan is pretty standard here in America. If you’re one of the 1% of the population that can afford to buy a car outright with cash, congratulations. Now let’s stay humble..

 

[FLGladiator]

I was going to trade mine for a new wrangler as I wanted inside cooler space for one or 2 dogs in crates. Was offered 38,000 on mine and the new base Willys Wrangler would have cost an additional 10k. Not worth it. The way I look at it is we are already at height depreciation for a while, I don't think these things will be in the 20s anytime soon (unless high mileage) so decided to hold on to it until at least my Cyber truck order is ready.

 

[High Alextude]

An auto loan is pretty standard here in America. If you’re one of the 1% of the population that can afford to buy a car outright with cash, congratulations. Now let’s stay humble..

Hey, you asked us to talk you out of it. If you want to take out a 36k car loan at 7%, by all means go ahead. I promise you I’m not part of the 1%, I’m just good with budgeting.

 

[NewGladdyOWNR]

Honestly, it seems you are more worried about chasing a payment vs. getting the best price for the purchase vehicle and that is kind of being in a bad spot that most money managers would tell you to stay with what you have.

This seems like a want vs. need scenario. You have to ask yourself if the capabilities of the Rubicon are what you need vs. what you want?

Yea you’re not wrong with it being more of a “want” vs. a ”need”, which is why I needed a reality check lol! I’m not really chasing a payment necessarily but a lower monthly payment would be ideal, i think for everyone. This just happened to be a good deal and I wasn’t sure if it was worth passing up. If the interest rates were lower I’d pull the trigger.

 

[TestMule]

I don't like the deal. You are taking on more debt, at a higher rate, for a longer period of time and you are wiping out any equity you have in your current vehicle which at this point just gets you another contract.

If ya gotta have it, then go for it. But in the long run the reduction of debt realized by keeping your current vehicle is a more fiscally responsible action.

 

[NewGladdyOWNR]

I don't like the deal. You are taking on more debt, at a higher rate, for a longer period of time and you are wiping out any equity you have in your current vehicle which at this point just gets you another contract.

If ya gotta have it, then go for it. But in the long run the reduction of debt realized by keeping your current vehicle is a more fiscally responsible action.

Yea that’s the way I’m leaning as well. It doesn’t make financial sense for me. In the back of my head I figured the Rubicon would hold it’s value over my Overland and I’d eventually get better equity in the long run. But thanks for your honest input!

 

[WILDHOBO]

Yea that’s the way I’m leaning as well. It doesn’t make financial sense for me. In the back of my head I figured the Rubicon would hold it’s value over my Overland and I’d eventually get better equity in the long run. But thanks for your honest input!

I’m in the other camp. You can’t upgrade gears, add lockers, get 4:1 low range, and a power swaybar disconnect for 10k. What else does the new one have that yours doesn’t? LED, advanced safety, etc?

 

[WILDHOBO]

And how much, if not all of the aftermarket parts on your overland can you keep and transfer to the new one?

 

[NewGladdyOWNR]

I’m in the other camp. You can’t upgrade gears, add lockers, get 4:1 low range, and a power swaybar disconnect for 10k. What else does the new one have that yours doesn’t? LED, advanced safety, etc?

Advanced safety, no ACC, the rest is standard rubicon functions that the Overland does not have. If the interest rate was lower it’d be a no brainer. I’ll probably hold off for a 2025 Rubi.

 

[NewGladdyOWNR]

And how much, if not all of the aftermarket parts on your overland can you keep and transfer to the new one?

I’d lose out on my Clayton lift (sold my stock suspension) and my hot head headliner. Everything else I can transfer over.

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