Drive a Gladiator for only 1 year and sell - how much will it cost me?

[Gladiator4Runner]

How about you buy a loaded Rubicon this year and call me when you're sick of driving it (if that's possible) and I'll take it off your hands for a fair price!

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[smlobx]

In for the popcorn!

The only very early retiree I’ve actually met was one of the first 6 people hired by Google. He was 32 when I met him several years ago and was truly set for life. He got most of his compensation in preferred shares...and retired when he was 27.

 

[Eddiehaskell]

I’m thinking this is going to be tough with any car. Let’s do some math and go backwards with your values.
Let’s say you buy something for mid 50s, taxes are going to be ~1600. So now your down to 6900. Let’s add in insurance and call it $150/ month so that’s another 1800. Now you are down to 5100. So you would need to only lose 5100 in 1 year value. Typically 1st year depreciation is upwards of 20% on a standard car. While the Jeep will be better it would be a tall task to hit your numbers with any car. While it might sound good you’ll be giving away lots of money to try the scheme you have.

Here’s my math..

$55k purchase + $1500 in misc fees/taxes = $56,500

Insurance is something I’d pay on any vehicle.

To lose no more than say $8500 I’d need to fetch $48k for the vehicle. That would likely be tough as you said.

To throw a huge wrench into things, there’s also the possibility of renting the vehicle to recapture some funds. I saw a Raptor for rent for $150/day. Just renting 3 days per month would be $5400.

$8500 + $5500 gives me $14000 to play with. Now we are talking $40k for a $55k vehicle. Totally doable I think. Sure some people may thrash it, but who cares...you have insurance and it gets sold in 1 year.

 

[Eddiehaskell]

In for the popcorn!

The only very early retiree I’ve actually met was one of the first 6 people hired by Google. He was 32 when I met him several years ago and was truly set for life. He got most of his compensation in preferred shares...and retired when he was 27.

I did it but I didn’t make anywhere near that. It was a goal since probably 15 years old.

 

[Eddiehaskell]

How about you buy a loaded Rubicon this year and call me when you're sick of driving it (if that's possible) and I'll take it off your hands for a fair price!

I’m kinda thinking the other way...how about someone here sells me their loaded Rubicon for about $5k less than I’d currently pay brand new. Maybe a Sport S for $35k or so.

 

[smlobx]

I will bet you $1 that your insurance policy does not cover you if you rent your vehicle (commercial use) and then if it gets in an accident you’re screwed...

I think a 2 year low mileage lease might actually come the closest to meeting your goal.

‘Also, keep in mind that this is a relatively new vehicle and even though you can get 5% below invoice in a year I would bet there will be even better deals that you’ll have to compete against.

 

[giskard]

One thing you could do is get a normal 2-4 year lease and find someone to assume the remainder of it after a year. Check out sites like swapalease. I've used it twice over the years - once to get out of a lease early and the other to assume the last 6 months of a fun car I wasn't sure if I'd want to keep (my first i3). This would likely be the easiest way to accomplish your goal, I think.

 

[Eddiehaskell]

LOL, he had to drive a Prius for 11 years.

I'd rather work into my 60`s

And if his vehicle depreciation budget is $8500 a year, I'm thinking his idea of retirement and mine are entirely different.

$8,500 is a nice number because the great cars in the $50-60k range can hit this. Allowing for a bigger depreciation budget is great and all but the return on investment (time/work/money ratios) seems to slip a bit once you start going much above $60k or so. That amount of money can buy a hell of a car nowadays....especially compared to just 10-15 years ago.

And I’ll make this very clear....I wouldn’t work into my 60s for any car that has or will ever be created, lol.

I peaced out on the work force long ago...I’m young, healthy and get to live my life on my terms for a long time. It’s scary but it’s exciting at the same time.

I wanted it all. Time. Money. Freedom. And I got it...

 

[Eddiehaskell]

I will bet you $1 that your insurance policy does not cover you if you rent your vehicle (commercial use) and then if it gets in an accident you’re screwed...

I think a 2 year low mileage lease might actually come the closest to meeting your goal.

‘Also, keep in mind that this is a relatively new vehicle and even though you can get 5% below invoice in a year I would bet there will be even better deals that you’ll have to compete against.

I believe the companies that handle the rental process provide insurance. One of them I glanced at takes something like a 15% cut for insurance...$150 = $127.50

 

[bgenlvtex]

$8,500 is a nice number because the great cars in the $50-60k range can hit this. Allowing for a bigger depreciation budget is great and all but the return on investment (time/work/money ratios) seems to slip a bit once you start going much above $60k or so. That amount of money can buy a hell of a car nowadays....especially compared to just 10-15 years ago.

And I’ll make this very clear....I wouldn’t work into my 60s for any car that has or will ever be created, lol.

I peaced out on the work force long ago...I’m young, healthy and get to live my life on my terms for a long time. It’s scary but it’s exciting at the same time.

I wanted it all. Time. Money. Freedom. And I got it...

Cool, are you including the $4k you are going to lose in investment return and the $1k it will cost you to insure it for that year in your $8500 budget (assuming you are paying cash so no interest)? If so, you aren't going to achieve your goal, if not your budget doesn't accurately represent what you are willing to spend and you're lying to yourself.

I was joking about the Prius (sort of), I get it, I wouldn't either. On the plus side after driving a Prius for 11 years you shouldn't have to worry about testicular cancer.

I hope you get to live your dream, good luck, but don't start out by convincing yourself of a false economy that doesn't exist.

 

[bgenlvtex]

How about you buy a loaded Rubicon this year and call me when you're sick of driving it (if that's possible) and I'll take it off your hands for a fair price!

I realize this is sarcasm, but reality is that this is exactly the way to get where the OP wants to be.

Pre-arrange a sale, treat it right, maintain it properly and maybe contract in a few months flexibility into the exchange for both parties.

 

[Eddiehaskell]

I realize this is sarcasm, but reality is that this is exactly the way to get where the OP wants to be.

Pre-arrange a sale, treat it right, maintain it properly and maybe contract in a few months flexibility into the exchange for both parties.

You’re right. Who wants to do it? I don’t off road...she’ll be a low mileage mall crawler. I’ll even let you drive her a weekend every month. At the end of my 1 year “lease” you agree to purchase her at a prearranged price. Let’s say $6500-7500 less than my out the door price.

 

[GOT16]

Definitely hard to tell, with the Gladiator being new.
But, i'm thinking most will agree they SHOULD hold their value great, like wranglers.
(really hope i'm right!)
Just no others that can go topless/doorless in summer and 4WD in winter.

When buying my 2014 JKU I was looking for 1 year old and it made no sense because they were all going for close to new.
Paid 30K new and really couldn't find any 1 year old for under 27K.

Traded in recently for Gladiator and still got 20K.
almost 6 years and 60K miles and lost 10K, 8500 if take into account tax savings.

 

[5JeepsAz]

Hey is this the thread where I get my lightly used LE for OTD 40K?

 

[spazzyfry123]

What does the $8500/year cover? Are you writing a check for the $50k-$60k vehicle and anticipating a $8500 loss including taxes? Or are you looking to finance and pay $8500/year?

If financing, I don’t see where you’re buying a $50k+ out-the-door car at $708/month without additional cash down and/or a lengthy loan term. Say it’s on the low end of the range and it’s exactly $50k all in. That’s already about $9500/year in just payments for a 72 month term with zero down. Then factoring in depreciation, insurance costs, etc. you’re more than double your $8500 budget.

Am I thinking too much into this? I’m confused.

I think you’re better suited getting a low mileage lease. People sell off their leases all the time.

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