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

[BAT]

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.

Haha yep when I bought my max tow unit in 2020 I got it for $35K and the dealership was telling me hey look we can get you into a Rubicon for I think somewhere in the low to mid 40's and I said no way that is crazy high and look at them now. The JT was the first new vehicle I had bought in a long, long time as I usually buy previously owned. At the rate things are going this might be the last new vehicle I buy

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[BAT]

This is a solid point. The area I live in- if you purchased a house pre 2018 you are set.
I don’t know how “most” of the folks who move in around me do it. Houses still selling at $6-700k
Even dumping 150k cash down @ 7.1% “this weeks lowest” you’re looking at a $4,100 a month ?. Can’t imagine down around where I work, houses are still selling around a million. 6-7k per month for a house… can’t blame them for staying home… lol

Boomer generation retiring at work like to laugh at this…. Guess they forget the same generation they tease is expected to contribute and support their social security…. Awkward…

Hell I don't laugh at them I know the young folks out there looking for housing have it really tough now. When I bought mine it was an almost 3000 sqft house on lot for $110K that was in 97 and today if I were to sell it in the market the value is close to around $400K. Bad part is my wife and I are going to be looking to sell in a few years to downsize but even though we can get crazy money we would have to pay crazy money for probably a lesser house.

 

[Erievon]

Sure would like to see the new norm that supports a paycheck that makes 5-6k a month fall in that 30% of income equation…. ??

This right here. Everything is up except my salary. Hypothetical numbers, but if inflation is 7% this year and my raise was 3%, I just took a 4% cut against the cost of living. I keep telling my employer it would be far easier to pay me then to have me walk and have to replace me with someone coming in looking for a salary more in line with todays economy. They've basically got through year end to figure that out or I start looking.

 

[ttn333]

Just reread the title and realized that Jeep's best customers are the ones that CAN afford these higher prices. Gives them higher profit margin, cut down labor and supply cost since they don't have to move as many units. I bet that is exactly who they are targetting. Just take a look at the new Grand Wagoneer.

 

[Deleted member 57233]

This right here. Everything is up except my salary. Hypothetical numbers, but if inflation is 7% this year and my raise was 3%, I just took a 4% cut against the cost of living. I keep telling my employer it would be far easier to pay me then to have me walk and have to replace me with someone coming in looking for a salary more in line with todays economy. They've basically got through year end to figure that out or I start looking.

Start looking now. Even if it's a job you don't want, having an offer in hand is an easy way to get your employer to pay you more. They won't do it without leverage. I asked my job for 20% this summer, got 50% elsewhere when I started looking. Then I got $5k for each coworker I recruited to the new job lol.

 

[Deleted member 58561]

In my opinion, if a man isn't making 10%+ percent on his portfolio he isn't investing properly. And if interest rates are lower than 10% and he is using cash that could be generating 10%+ to avoid an interest rate, he isn't financially savvy as he sounds. ANY accountant would tell you you are losing SIGNIFICANT earnings by paying off a 1.9% rate early.

I use my money to make money. You use your philosophy to make posts on an internet board. In the end, I'll have more in the bank and you'll have... more posts.

Hate to tell you bub, you are making no earnings on debt from an interest bearing loan on a depreciating asset. Me thinks you, the guy all offended because I believe people should own things instead of perpetually pay, are not as financially savvy as you think. But you keep on posting d-bag responses instead of constructive conversation.

 

[TheDerb]

Hate to tell you bub, you are making no earnings on debt from an interest bearing loan on a depreciating asset. Me thinks you, the guy all offended because I believe people should own things instead of perpetually pay, are not as financially savvy as you think. But you keep on posting d-bag responses instead of constructive conversation.

No one is going into this thinking they are going to be made whole on bad debt, nor did anyone say "earnings" with respect to a net profit when the terms of loan repayment have been met. I'm referring to a mitigation of the loss we agree to by purchasing any depreciating asset.

The variable of potential money to be earned (opportunity cost) obviously isn't coming from the depreciating asset- it's coming from the opportunity potential of the money you still have. Paying off a vehicle that you are paying 1.9% on, when you already agreed to take the loss on the original bad debt, is silly if you can earn any more than 1.9% on it, which is easy. Savings accounts at your local bank are paying 5% today.

So, you are correct that you don't "earn" on a depreciating asset. That isn't the point. The point is that I have more in the bank- and spent less of the principal- at the end of 60 months than you do, and I apologize if I came across as a D-bag, but "if a man can't afford..." is a dumb way to start a sentence for those of us who have made it VERY far in this world by letting our money work for us and is going to immediately cause us to call you out on bad advice.

 

[ErylFlynn]

Are they too expensive? Maybe, the only reason I lean that way is that sales numbers are down. You can't tell me people are not wanting new jeeps. So the fact they are selling at lower rates points to price being too high for the market they have been catering to. If selling less of them makes them more money, then from Stellantis's point of view they are priced right.

 

[Raven65]

(EDIT: Apologizing for being a saracastic ass in this response. I really feel that a lot of these boilerplate "Oh, you can just go to a salvage yard" comments lead people to make financial decisions that are more harm than good in the end.)

You are clearly the exception to the rule. You apparently have the knowledge, tools, and capability to install new transfer cases and lockers. And unlimited time to do this at a cheaper rate than what you make at work.

For most of us, that is a fictional accounting of what someone "could do". Some people could easily swap a 392 into their JT and think that anybody who pays a shop to do it is nuts.

But for a realistic perspective, This is a quote I received yesterday to put lockers, a re gear, and a lift on my wife's '24 JL. Sure, you can go to scrapyard and get what you want. But the fact is, most scrap yards (at least around me, at least) take all of the good stuff and have it on eBay 5 minutes after it gets towed in to the yard.

Getting a new transfer case installed and re-gearing or replacing axles is something that maybe 3 in a thousand people are capable of. It's just not likely that the person who is trying to save money by going to a salvage yard is the same person that is going to have a garage with a lift and every tool you could imagine, as well as a helper to get these things installed. That person is getting top of the line. So sure, you can absolutely save money and go to a pick-and-pull and get it done. Sure. But for the most part, less than 1 in 100 people will do that.

...and yet all that is still a couple thousand dollars cheaper than the price difference between a Sport S and a Rubicon.

 

[ttn333]

...and yet all that is still a couple thousand dollars cheaper than the price difference between a Sport S and a Rubicon.

Not really, still missing the wider axle and e-sway bar disco. Also factory warranty. It really doesn't add up to not get a Rubicon if you wanted those features.

 

[Reddout99]

We bought our '21 JT Sport S a couple months ago. I know they're not inexpensive right now, but I knew what I wanted and waited till I found it. We financed it only if we could make extra payments and pay it off early without penalty. Gives us flexibility to pay the minimum if we have to or make a large payment like we have been doing since purchase. Plan is to have it payed off in a year.

 

[Raven65]

Not really, still missing the wider axle and e-sway bar disco. Also factory warranty. It really doesn't add up to not get a Rubicon if you wanted those features.

If you start with the Max Tow package, you'll have the wider axles, the 4.10 gears and a rear locker, but that's another $1800 on top of the Sport S price - so subtract the gear swap and one of the lockers from your estimates and you're still saving a couple grand. The warranty is a very valid argument though. We are talking about Jeeps after all. LOL

That said, it can still be done for much less if you can source used parts and have the ability and the tools. ...and the time... and a good place to work... and a buddy or two to help (and que up the YouTube instructional videos)... and plenty of beer. Most of this work isn't rocket science though and can be done with common tools, but I get that it's beyond a lot of people. I'm sure I could do it all myself except for the gears/lockers. If I thought I truly needed all of the equipment a Rubi offers, I'd have no problem just buying one up front and be done with it (and have the full warranty). However, I knew that I wouldn't, so I went the route I did - knowing that I could upgrade it later if my needs changed. They won't, but it's nice to know that option is there anyway.

 

[Escape.idiocracy]

Just reread the title and realized that Jeep's best customers are the ones that CAN afford these higher prices. Gives them higher profit margin, cut down labor and supply cost since they don't have to move as many units. I bet that is exactly who they are targetting. Just take a look at the new Grand Wagoneer.

I am willing to bet their service department loves this new crowd too… lol (yes- I profiled… take it easy )

I make good money. But I’ll be damned if I’m throwing $150-250 an hour at someone to fix a car/truck/boat anymore. I say this and do totally realize this may mean I’m rocking old cars for good after this… ???

 

[ttn333]

I am willing to bet their service department loves this new crowd too… lol (yes- I profiled… take it easy )

I make good money. But I’ll be damned if I’m throwing $150-250 an hour at someone to fix a car/truck/boat anymore. I say this and do totally realize this may mean I’m rocking old cars for good after this… ???

I usually take a vehicle to the dealers only til the warranty expires. Also, my skillset is limited to bolting things on.

 

[j.o.y.ride]

I mean if you spend your life living in a low cost are where a house is $250k then you're likely going to have a salary to match, so things like cars are a significant chunk of income.

That also means saving a lot for retirement is also likely a massive challenge and your options of where to retire are limited.

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