This is bad advice. You should almost always take the loan rather than pay cash. Depreciation is not the issue. The issue is opportunity cost. The loan helps you in two ways:Ok, So sarcasm obviously isnāt something you pick up on. Your information is misleading. Owning a vehicle outright is always better than financing a depreciating asset(a car is a depreciating asset in most cases. Collectors cars.. think Barret auto Auctionā¦. Might be an investment ??? Not for me, too many other options that are less risk to invest in). Sure, there may be some depreciating assets out there that are worthy of financing butā¦ unless the interest is at 0% on a financed car (BUTā¦ even a new car purchase at a dealer at 0%, will still hit you in the wallet with other fees that you wouldnāt t have on a lightly used vehicle from private owner that has already had dealer lot drive off depreciation taken away) then you are spending money on depreciation, interest and fees that you could invest elsewhere. Free money (dealers and their banks still arenāt really giving you free money at close inspection).
so as mentioned even at 3% interest with compound interest and fees you are loosing money on that depreciating asset. Vehicles that are more expensive have higher insurance rates, usually higher maintenance costs etc. if you have the money and it doesnāt t matter to you as itās something you enjoy then by all means buy it. If it is a financed want and you canāt afford buy a cheaper car with cash or pay off that JT you already have and put money somewhere else that appreciates in value.
Gas mileage does not matter to those that buy a vehicle and can afford it. That is the point i
I thought about that route we had a durango RT and now are other car is a Grand Cherokee L so we have a family hauler. I want a truck for hauling my dogs up to camp. Ill probably put another softopper on the TRX like my gladiator and put a kennel in the back again in the summer.3 kids? Get the durango hellcat. Keep the jeep ( at least my plans ). Mpg is horrendous anyways since too much fun.
There is no way anyone is selling a TRX for $65k. They are going for 2x that new.Man I talked to Koonz in VA and we wrote up a Deal for buying the TRX from them its $65k and then I have a local dealer will to buy my Gladiator now for $55k without the softopper. Thinking about going down to 1 car as we dont really need 2 and banking all of the payments and insurance until the TRX is done.
Man I thought the same thing. They sent me a build sheet to sign off on showing the $10K credit. If you look on the TRX forum and this one they are now a power broker for Jeep, Dodge, Ram.There is no way anyone is selling a TRX for $65k. They are going for 2x that new.
At that price, you might as well buy a couple and resell them for a 30-40k profit.Man I thought the same thing. They sent me a build sheet to sign off on showing the $10K credit. If you look on the TRX forum and this one they are now a power broker for Jeep, Dodge, Ram.
@Koons_of_Tysons_Corner
https://www.ram-trx.com/threads/koons-dodge-power-broker.5920/
They are also offering $7k off on 392 wrangler orders
The base model TRX starts at $75k and with 10k that puts it at $65k. It looks like Granger is offering 9k off new orders.
Financially you are right. You finance at a lower rate than you make in other investments then you come out ahead, no brainer. Whether or not the asset is depreciating is irrelevant because if you paid cash for it, it's still depreciating either way.This is bad advice. You should almost always take the loan rather than pay cash. Depreciation is not the issue. The issue is opportunity cost. The loan helps you in two ways:
* you are paying 80k in 2021 dollars, but you will ultimately pay this back in an average of 2024 dollars. 2024 dollars are worth less (inflation), so you are getting a deal here.
* that 80k you apparently have in cash should be invested. Anything over a 3% return and you win. Its pretty easy to get 20% right now, but you would have to try hard to get less than 3%.
The Dave Ramsey crowd will never hear this logic, but you should almost always take out loans and keep your cash.
Financially you are right. You finance at a lower rate than you make in other investments then you come out ahead, no brainer. Whether or not the asset is depreciating is irrelevant because if you paid cash for it, it's still depreciating either way.
Buuuut it depends on your risk tolerance. Also it's hard to know when you are at the top of the market and when a correction will happen. (hint: when the guy at subway or in a jeep forum is telling you how to invest it's at the top of the market) I'm pretty sure no one bought their gladiator because it was a savvy investment. (unless some off road business or something) We bought it because it's a toy. So for me I chose to pay my gladiator off because I enjoy it more knowing I don't have a truck payment. I feel good getting in my truck knowing I own it and it doesn't own me. I hated looking at my truck and thinking this is costing me $1000+ (or however much) a month. When its paid off it feels like a weight was lifted off my shoulders. I feel like I can actually go to Moab in it and if I break something then I would think āwell that's about what I would spend on a months payment if I hadn't paid it off.ā I feel like I can buy that expensive mod I've always wanted etc. It allows me to enjoy my toy more. To each their own.
Also you can't always guarantee you will make money in the stock market. When it has a correction (which is happening at the time of this post) then all you did is invest at the top of the market only for it to correct and lose money aaaaand still have a huge car payment. While the one who paid it off can take what they would have spent on a payment and dollar cost average in the market over the next however many years with much less risk.
Sorry to hijack this thread with a finance discussion. Lol