Some Of Jeep's Best Customers Simply Can't Afford A Jeep Anymore

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My rule of thumb is that if you can't pay it off while it's still under warranty, it's too expensive. I don't buy extended service plans or warranties, my logic being to pay it off, set aside maintenance funds ("pay yourself" an additional 4-5 months. payments into savings after payoff), if it breaks, fix it.

If you take care of your vehicles, do required maintenance on schedule, and adhere to the above, unless you get a lemon, you should expect a solid 10 years / 200k miles from any late model vehicle.

Jeeps are expensive, my Rubicon is the most costly vehicle I've owned, but for the capability and build I think in the spectrum of current inflated values, it is reasonable-ish. I'm gratefully in a place in life where I can afford the truck and its want vs need proposition. From my years in the Army though, I'll forever grimace when I see a 20-30-year-old driving a $50-60k vehicle while still renting and living in the barracks.

Affordability is truly a lifecycle assessment. Affording the purchase is one piece, but you also need to afford proper insurance, maintenance, and servicing for any financing. Current interest rates should dictate paying off a loan ASAP vs just extending it out 6-8 years, at which point you are in a financial trap. It might be an unpopular opinion, loans 5 years or longer are a trap for those who can't afford what they're buying. I realize that means a significant portion of the American public cannot afford a majority of new vehicles. My self-imposed rules are perhaps a sign of privilege to be able to follow them, but the perversity of the market doesn't mean we should be reckless.

I tend to hang on to vehicles for a long time as well. The last two trucks I kept for 8 years and 9 years respectively. I try to keep financed amounts below half the out the door price. I will say that right around the 7-8 year mark my eyes start to wander to the latest and greatest though. My wife and I tend to alternate car purchases, it's her turn next, and her car is right around the 7 year mark.

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[High Alextude]

I will add that I did opt for a 72 month loan this past July for the gladiator so I would have a low monthly in case something big came up, but since nothing did and I was/am able to pay more every month, it will be paid off this January.

I would not recommend anyone gets a loan longer than a 60 month unless you pay more on the principle monthly or get an extremely good rate. You don’t want to be stuck paying a loan that long for something you will either not keep that long or put more money into it with mods and not recoup the loss.

The YOLO mentality is crazy ?. However, I don’t think people are ever going to stop buying what they can’t afford, it’s the American way! ?

 

[lotecredneck]

I will add that I did opt for a 72 month loan this past July for the gladiator so I would have a low monthly in case something big came up, but since nothing did and I was/am able to pay more every month, it will be paid off this January.

I would not recommend anyone gets a loan longer than a 60 month unless you pay more on the principle monthly or get an extremely good rate. You don’t want to be stuck paying a loan that long for something you will either not keep that long or put more money into it with mods and not recoup the loss.

The YOLO mentality is crazy ?. However, I don’t think people are ever going to stop buying what they can’t afford, it’s the American way! ?

I did the same 72 month with Stellantis, but they paid me $1,000 to do so and it was at 1.9%... I was going to pay cash, but the offer was too good to pass so I put the cash in a cd at 5.5% and took their offer!

~Tony

 

[SSinGA]

Do you mean 2004? Rubicons didn't exist in 1994. They came out in '04 with a price of around $25k...

Fixed. Went again in 2004 and still couldn't afford it.

 

[Raven65]

I did the same 72 month with Stellantis, but they paid me $1,000 to do so and it was at 1.9%... I was going to pay cash, but the offer was too good to pass so I put the cash in a cd at 5.5% and took their offer!

~Tony

I did the same, but they were only offering a $500 incentive when I bought mine (a year ago). You had to keep the loan for at least 90 days to keep the incentive, so I paid it off on day 91.

 

[lotecredneck]

I did the same, but they were only offering a $500 incentive when I bought mine (a year ago). You had to keep the loan for at least 90 days to keep the incentive, so I paid it off on day 91.

With the interest spread, I will keep the cash in the bank and let it make money to help defray the cost of the Gladiator.....

 

[Bonanza]

Just paid off my gladiator, 3 years early. I remember feeling remorse because some people allegedly bought a similar spec'd Sport S MT for 39-41k, whereas I bought mine for 43 flat. Now the same truck can't be had for less than 53k. I remember skipping on Rubicons because there were all at the 49k mark and I figured I was going to regear anyway so I passed.

Crazy.

 

[Raven65]

With the interest spread, I will keep the cash in the bank and let it make money to help defray the cost of the Gladiator.....

Meh... what's the interest spread... 2%? I'd rather have no car payment and the title in hand in case I decide to sell it & get something else.

 

[ScottBeach]

My 96 tracker was $12,400. Cheaper than any wrangler I could find by 4k.
But I agree it's a long way from 16k to 70k.

 

[ScottBeach]

I wouldn't advise anyone young to buy in 2023. 8% interest on a 40k loan? Jeep might lose a generation of kids wheeling. So such thing as a beater "priced" wrangler today.

 

[Scott0700]

My sister in law is always critical of how often my wife and I buy new cars. Meanwhile, I figure she spends at least $300 a month at Starbucks.
We all have different priorities. At least mine has a resale value.

 

[5adventurers]

$60k, $399 a month is 18.5~ years…..

???

???

Though- these same people are also making $100 a month payments for the wheel/tire they finance, $200 payments for the lift kit and install…

banks have some badass jeeps…. ???

Do people (here on the forum) actually finance wheels, lift and tires?

I knew people growing up would do a wheel loan....but I guess I just assumed people with lift wheels and tires....bumpers and lights just paid for it straight....okay...maybe some on a credit card....

But, really? 5k+ in loan just to add to the jeep payment? Crazy

 

[TheDerb]

Do people (here on the forum) actually finance wheels, lift and tires?

I knew people growing up would do a wheel loan....but I guess I just assumed people with lift wheels and tires....bumpers and lights just paid for it straight....okay...maybe some on a credit card....

But, really? 5k+ in loan just to add to the jeep payment? Crazy

Maybe not on this forum, but in the real world they do, and they do it at 28% interest on a credit card.

This is one of the reasons when people say "You don't have to get a Rubicon, you can just add things later!" I think "you just cost that person more money than you think".

 

[High Alextude]

I wouldn't advise anyone young to buy in 2023. 8% interest on a 40k loan? Jeep might lose a generation of kids wheeling. So such thing as a beater "priced" wrangler today.

They can afford it, most of them still live with their parents anyways since there’s no way they’re buying a house anytime soon. ?

 

[ttn333]

Maybe not on this forum, but in the real world they do, and they do it at 28% interest on a credit card.

This is one of the reasons when people say "You don't have to get a Rubicon, you can just add things later!" I think "you just cost that person more money than you think".

I never understood that. That's why I got a Rubicon. Seems more cost effective that way. Funny thing, my bank actually encouraged me to borrow more than I needed for additional mods on the Gladiator. Thought that was odd. Although interest was pretty good at 2%. I had already bought the mods I wanted before getting the truck back in '21. Just prepping for another vehicle purchase and the interest is now 4%.

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