Cash Vs Bank

[LarryZiegler]

Let’s talk depreciation.

Let’s say I buy a tricked out Badlands and it ends up being $50k our the door.

What would you think the market value is on it in one year? How much has the value dropped?

assume less than 10k miles in year 1 and completely stock.

If values hold like Jeep, your value will be in the low 40’s

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[Weld3z]

Yeah.....the years when you could buy a beater Jeep for off roading for under $7500 are long gone!

Wrangler is different story but hey there is way
I remember buying Jeep XJ for $800-1000 direct from the port to the desert
Enjoy the ride

 

[Chamberlin]

In Calif, there are no used 2018-2020 Wrangler Rubicons for under $42,000 on Autotrader.com....that tells you how strong their value is....and has been for years

I have a sneaking suspicsion that might be changing sometime around June of 2021

 

[XCR440]

I have a sneaking suspicsion that might be changing sometime around June of 2021

Actually, I think it will go the other way. Competition is good as long as there is enough market-space. I don't think people will be able to just go and buy a Bronco next year, so many of these buyers are likely to look at Wranglers creating an increase in demand holding prices high.

The exception to this would be if Jeep would start running incentives to blunt the Bronco launch, but I don't think they will, possibly once Bronco becomes available, but even then, I think this segments going to grow enough to support both for the next few years.

Long term could be a different story, but too many variables in that one, I suspect resale will drop, I think others will see Ford and Jeeps profits, and jump into this segment causing it to end up crowded.

 

[BP Bronco]

If you need Bronco - lease it. Everyone needs change over time, kids, wife, long commute ..... when your needs change you may need something difference.
If you want a Bronco buy it - Wants and desires typically don't change and you will likely keep it for a long time. Buying is cheaper than leasing over the long haul.
Cash or Finance - lots to consider - if you got the cash and it doesn't deplete your emergency fund pay cash. Investment income vs finance rate - just remember investment income is taxable and car loans are not deductible. It really comes down to the interest rate.
For me, I want one so I'm a buyer. (As my wife said, you don't need another vehicle... my reply was your are right dear, I don't need one, I want one) Depending on the interest rate, if it is less than 1.9% I will likely put down 50% and finance the balance. If rate is over 2% pay cash.
Another tip - don't talk lease, finance terms, until after you agree on the purchase price, especially if you are considering paying cash. Dealers make an additional margin if you finance or lease and will often cut you a better purchase price if you don't tell them you are paying cash.

 

[bomkrb]

I'll be using a credit card, for the 2% cash back, then pay it off immediately.

 

[LarryZiegler]

I'll be using a credit card, for the 2% cash back, then pay it off immediately.

They won’t let you use it, except for a max $5,000 down pay. The credit card fees eat into their profit....I’ve had friends who tried....and failed

 

[bomkrb]

They won’t let you use it, except for a max $5,000 down pay. The credit card fees eat into their profit....I’ve had friends who tried....and failed

They will allow it

 

[SAcobra427]

Yea I heard the same thing about using a CC at a dealer, no can do. Thats cool if your dealer will let you do it. 2% of maybe 40-60 K would be a nice added bonus.

 

[DrewBronc21]

Why put 50% down with rates under 1.9%? Would you put money down on a 0% loan? Should be very easy to make 5% or more on that cash.

I’m curious because there seems to be so many differing opinions on this. To me, the math tells me to put very little down on low apr loan. The difference between a $50k Loan @ $1.9% with nothing down and putting 50% down payment is only about $1,000 In interest over the term. you can make much more than that in just about any type of investment

 

[SAcobra427]

Like I had said earlier, Its almost always better to use someone else's money, and especially when they are charging you little or nothing to use it !! Not sure how else you could look at it really ??

 

[Garbone]

You are good.....740 is the typical number for Tier 1 credit status

After reading this exchange I, for a fleeting moment, pondered looking up my credit score, then I realized, ya, not doing that.

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