Pricing on my first Gladiator Mojave

[Yellow1098]

Is your credit score marginal?

I can easily shop around high 5% to under 7% rates for new.

maybe it’s my area and I have been able to fight and claw and find 1 for 7%……but still for a new car purchase 7% is awful….just in 2021 0% was the normal….that is worth a few hundred on payments…..cars have always been a bad investment I get that….but 7% interest on a depreciating asset isn’t smart at all

A JT isn’t an economical need vehicle it’s a toy and I love it for that but with rates like that people are only buying vehicles they have to have. That’s why the sales are in the tank and jeep knows it. The first thing to take a hit is the niche cars.

some of the lucky ones can just buy them cash which is the way you should buy a toy! Im working on that cause at 7,8 % I’ll never pay it off

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[Deleted member 57233]

maybe it’s my area and I have been able to fight and claw and find 1 for 7%……but still for a new car purchase 7% is awful….just in 2021 0% was the normal….that is worth a few hundred on payments…..cars have always been a bad investment I get that….but 7% interest on a depreciating asset isn’t smart at all

A JT isn’t an economical need vehicle it’s a toy and I love it for that but with rates like that people are only buying vehicles they have to have. That’s why the sales are in the tank and jeep knows it. The first thing to take a hit is the niche cars.

some of the lucky ones can just buy them cash which is the way you should buy a toy! Im working on that cause at 7,8 % I’ll never pay it off

2021 was covid rates, and anything but normal. 5%-7% has always been pretty standard for car loans. 3.9% was the special deal they occasionally did to boost sales.

 

[Hootbro]

maybe it’s my area and I have been able to fight and claw and find 1 for 7%……but still for a new car purchase 7% is awful….just in 2021 0% was the normal….that is worth a few hundred on payments…..cars have always been a bad investment I get that….but 7% interest on a depreciating asset isn’t smart at all

A JT isn’t an economical need vehicle it’s a toy and I love it for that but with rates like that people are only buying vehicles they have to have. That’s why the sales are in the tank and jeep knows it. The first thing to take a hit is the niche cars.

some of the lucky ones can just buy them cash which is the way you should buy a toy! Im working on that cause at 7,8 % I’ll never pay it off

It is all relative. Sometimes one is just priced out of a market and that is the reality. I am now 56 years old and if 18 year old me would have speculated I would be buying a high $50K plus vehicle back then, would have though I was crazy.

I was making a vehicle payment every month until I hit my mid 40's and finally wised up that if I want to get out from high payments, I need either high equity into a trade and/or bring high amount for cash money down to either pay it outright or be able to have any balance paid off within a year. That took some sacrifice and reevaluating my money strategies.

Unless you correct me, I remember you mentioning leasing either your current vehicle and/or looking to lease your next one. That really brings very little equity going into the next one and leaving one to have to put higher money down to lower the payments. That is a hard math problem to get around.

 

[Yellow1098]

You’re absolutely right on both your points….the way you bought your cars is the way to do it….and the exact adjustment I’m trying to make now from my previous not so smart decisions, funny enough I just turned 40. My lease wasn’t the best idea…I fell in love when the JT came out and thought maybe I would have a ton of positive equity in it after the lease…

 

[23Freedom]

Everything said is accurate, cash is king however not a reality for most on a $60k purchase. Of course, the ideal situation is never to have a car payment, save up and never buy new.... Ramsey has made a fortune on that common sense.

With that said, when looking for a "crazy deal" on a leftover JT or any other vehicle the dealers will offer deeper discounts if you finance. To get the 30% off (in November, shoot for more now) I had to agree to finance and made a gentleman's agreement to make a minimum 6 payments so the dealer could get their kick-back from the bank. I haven't decided yet how many I will go beyond that and realize that flexibility is not a reality in most cases. I sold large toys during COVID and have bought very little since which really helped. I always try to double, even triple my payment if at all possible. From the first payment I set it at this amount. If this is not possible, I would reconsider the "need" for a new vehicle with heavy depreciation.

As for interest rates they are obviously very dependent on credit. I obtained 6% and was originally offered 8% at 72 months (Again, I pay at least double). This beat my credit union at 6.25%. I got to 6% by agreeing to purchase the 7 YR / 100K Mopar Max service contract. I'm not a big fan of these contracts however with reliability across the board since COVID I didn't hesitate. This is something you could hold off during negotiation and then in the F&I Office throw it out to them and ask for a better rate. Make sure you ask for Mopar if they don't offer, some dealers can't until you ask and I found it was cheaper than others.

So let's say you get a $65k 2024 model for $58k. Then you get a 1% rate for 72 months. If you make minimum payment you pay $1,760 in interest. The let's say you get a $65k 2023 model for $45k at 7% rate for 72 months. Again, make minimum payment (DON"T DO THIS) you pay $10,224 in interest. You have paid $59,760 for the '24 and $55,224 for the '23. The '23 still wins out. I think you will beat 7% with negotiation and if you add to your payment, the '23 will win out by a lot more. IMO a more likely rate on a '24 in this market is 2.9 or 3.9%.

 

[Hootbro]

As for interest rates they are obviously very dependent on credit. I obtained 6% and was originally offered 8% at 72 months (Again, I pay at least double). This beat my credit union at 6.25%. I got to 6% by agreeing to purchase the 7 YR / 100K Mopar Max service contract.

Were you wanting a service contract? Saving 0.25% off a loan rate does not seem like a good deal.

 

[Yellow1098]

Everything said is accurate, cash is king however not a reality for most on a $60k purchase. Of course, the ideal situation is never to have a car payment, save up and never buy new.... Ramsey has made a fortune on that common sense.

With that said, when looking for a "crazy deal" on a leftover JT or any other vehicle the dealers will offer deeper discounts if you finance. To get the 30% off (in November, shoot for more now) I had to agree to finance and made a gentleman's agreement to make a minimum 6 payments so the dealer could get their kick-back from the bank. I haven't decided yet how many I will go beyond that and realize that flexibility is not a reality in most cases. I sold large toys during COVID and have bought very little since which really helped. I always try to double, even triple my payment if at all possible. From the first payment I set it at this amount. If this is not possible, I would reconsider the "need" for a new vehicle with heavy depreciation.

As for interest rates they are obviously very dependent on credit. I obtained 6% and was originally offered 8% at 72 months (Again, I pay at least double). This beat my credit union at 6.25%. I got to 6% by agreeing to purchase the 7 YR / 100K Mopar Max service contract. I'm not a big fan of these contracts however with reliability across the board since COVID I didn't hesitate. This is something you could hold off during negotiation and then in the F&I Office throw it out to them and ask for a better rate. Make sure you ask for Mopar if they don't offer, some dealers can't until you ask and I found it was cheaper than others.

So let's say you get a $65k 2024 model for $58k. Then you get a 1% rate for 72 months. If you make minimum payment you pay $1,760 in interest. The let's say you get a $65k 2023 model for $45k at 7% rate for 72 months. Again, make minimum payment (DON"T DO THIS) you pay $10,224 in interest. You have paid $59,760 for the '24 and $55,224 for the '23. The '23 still wins out. I think you will beat 7% with negotiation and if you add to your payment, the '23 will win out by a lot more. IMO a more likely rate on a '24 in this market is 2.9 or 3.9%.

if the rate is that on the 24 I might just have to wait…..I know I said this in other threads but I’ve been getting offers of 9-10-11% right now with a 750 credit score

 

[23Freedom]

Were you wanting a service contract? Saving 0.25% off a loan rate does not seem like a good deal.

No.... It wasn't a 0.25% off, it was a 2% off. Dealer was 6% with contract, 8% without. Credit union was 6.25% and I mention just for reference that dealer beat them with service contract added. I couldn't have financed with credit union and received the 30% off MSRP. Dealer wouldn't have gotten their kick-back. At 2% off I was willing to purchase contract.

 

[23Freedom]

if the rate is that on the 24 I might just have to wait…..I know I said this in other threads but I’ve been getting offers of 9-10-11% right now with a 750 credit score

Wow! That seems really high... my dealer went with Valley Bank in NJ for the 6%. May be worth checking them out but certainly not a recommendation because I have limited experience with them at this point. They seem fine so far, set-up auto draft etc. with no issue.

 

[Hootbro]

No.... It wasn't a 0.25% off, it was a 2% off. Dealer was 6% with contract, 8% without. Credit union was 6.25% and I mention just for reference that dealer beat them with service contract added. I couldn't have financed with credit union and received the 30% off MSRP. Dealer wouldn't have gotten their kick-back. At 2% off I was willing to purchase contract.

OK, I thought the Credit Union 6.25% was still in play. The fact they had points on the loan to be able to take off 2% is still dirty in my book. They could have given that to you without the Service Contract Warranty but choose to leverage that. I know in some states, you actually can ask for and they are suppose to show you the "Buy Rate" the lender gives the dealer.

 

[23Freedom]

OK, I thought the Credit Union 6.25% was still in play. The fact they had points on the loan to be able to take off 2% is still dirty in my book. They could have given that to you without the Service Contract Warranty but choose to leverage that.

Yeah, I don't disagree. It added some to their bottom line. I knew going in offering such a low price they would only agree if I financed with them. If I beat them by a couple percentage points financing elsewhere or paying cash they maybe come off 20% instead of 30%. At the rate I plan to pay it, the extra $ off makes more sense for me. Each situation will be different for sure.

Traditionally not a fan of service contracts but having seen a higher percentage of fleet vehicles (mostly Ford) at my work go back to dealer since COVID builds began, I personally don't mind the little extra security. You also have the option to cancel it and get most (or even all) of your money back (applied to your loan). In that regard it can be used as a negotiating tool if someone didn't want the contract.

 

[Hootbro]

Yeah, I don't disagree. It added some to their bottom line. I knew going in offering such a low price they would only agree if I financed with them. If I beat them by a couple percentage points financing elsewhere or paying cash they maybe come off 20% instead of 30%. At the rate I plan to pay it, the extra $ off makes more sense for me. Each situation will be different for sure.

Traditionally not a fan of service contracts but having seen a higher percentage of fleet vehicles (mostly Ford) at my work go back to dealer since COVID builds began, I personally don't mind the little extra security. You also have the option to cancel it and get most (or even all) of your money back (applied to your loan). In that regard it can be used as a negotiating tool if someone didn't want the contract.

It all a big bullshit game anyways. I have been there before in taking dealer financing to get either higher rebate or markdown pricing and then just paying it off or refinancing immediately afterwards.

Should not be that way but it is what it is. They just do it everyday as their day job, most consumers just only play the kabuki dance every 2-4 years or so.

 

[Yellow1098]

Wow! That seems really high... my dealer went with Valley Bank in NJ for the 6%. May be worth checking them out but certainly not a recommendation because I have limited experience with them at this point. They seem fine so far, set-up auto draft etc. with no issue.

I’ll give them a call just trying to find a decent rate….or I’ll be out gladiators for awhile unfortunately

 

[mrsooner]

Most new '23 Mojaves are sub $49K right now. I saw a couple for $45K in the past week. Jeep and dealers are doing everything to move the '23s right now.

 

[Stan H]

New to forum and was hoping to get some opinions on buying my first Gladiator Mojave. MSRP is 65.8k on a new 2023 and wondering if 56k cash OTD is a fair price? Look forward to learning a lot from you guys! Any info is appreciated. Thanks!​

Yes that what I gave for my loaded Rubicon in 20'

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