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Discussion Starter · #1 ·
Tire Automotive parking light Wheel Land vehicle Vehicle


Twitter Link, before they delete it.

New Jeeps are really expensive, so I think most people would probably be thinking about that payment before they decide to go dunk their Jeep in some mud ice. But, I have known people out on the trail who have put lots of money into their Jeeps. Back when I bought my Jeep Liberty Renegade, I did take it out on the trail within the first month, but that was a different time and the payment wasn't that big.
 

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View attachment 85335

Twitter Link, before they delete it.

New Jeeps are really expensive, so I think most people would probably be thinking about that payment before they decide to go dunk their Jeep in some mud ice. But, I have known people out on the trail who have put lots of money into their Jeeps. Back when I bought my Jeep Liberty Renegade, I did take it out on the trail within the first month, but that was a different time and the payment wasn't that big.

Are you serious?

What is your real complaint with the advertising?
 

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Discussion Starter · #6 ·
He is making light of the grammatical error. Pretty sure no one wants to go beyond the payment, lol. I approve.
I was going to highlight to word to help people out.
 

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1974 Plymouth Valiant - 2013 Dodge Dart - 2013 Chrysler 300C
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I fully agree. This is no typo. I think the real meaning is that you should think and consider MUCH MORE THAN ONLY THE PAYMENT when evaluating which vehicle is right for you!

Perahps it sounds a lot better in French, Italian, or Portuguese?:p:D
Agreed
 

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As a former banker, people really need to think about what they're getting themselves into when making vehicle purchases. Dealers LOVE monthly payment buyers (where they don't care about the overall price of the vehicle, just what their payment is). The games that are being played with extended amortizations these days are really dangerous. Tying yourself to the max monthly payment you can afford at the moment puts you in a very precarious financial position - and you're locked into it for upwards of 96 or 108 months now! Is this vehicle going to meet your needs 5, 6, 7, 8, 9 YEARS from now? Is it going to be beat up and worn out by then? Are you going to be shopping for something else in 5 years and then carrying forward negative equity into the next purchase?

Unwritten rule of thumb used to be don't buy a vehicle that you can't afford to pay it off in 48 months. Now everybody's entitled to own the car of their dreams, apparently. Remember that lenders are often more than happy to hand you the shovel and let you start digging your own hole. Why are these long amortizations a thing now? Well they gotta find some way to keep selling expensive vehicles to people when wages have been stagnant for 30 years.

It's also risky to be financing a new vehicle longer than its warranty period (but I'm sure the dealer can upsell you an extended warranty and tack that onto your loan).
 

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2002 Ram 2500 Quad Cab 4x4 with Cummins. 2021 Jeep Grand Cherokee L Altitude
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Maybe that's why Hyundai/Kia sells so well. Their warranty is actually longer then the loans. The 10/100k warranty might only cover the power train, I'm not sure. But it's way better then Stellantis US at 3/36k plus 5/60k power train that given their past, one has to bark at the right phone number for them to approve things.
 

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Yes, the H/K 10/100K warranty is for the power train only. I think the bumper-to-bumper is 5/60K or something like that.
But PTM makes a good point. Unless you finance for 48 month or less and put a significant amount down (at least 10% or enough to cover taxes & tags), you have negative equity for quite a while. Only in the last two years of the loan does the vehicle value exceed the loan value.

What I try to do is arrange the financing for the longest term (say 60 month), but then figure out what the payment is over 48 months and pay that. That allows me a cushion in the event one month is tight financially I can pay the lower amount.

Loan terms have become longer to make the payments more affordable. But as noted, there are risks with that. I could not imagine paying for a vehicle for 8-9 years. It's bad enough at 5 years.
 

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Loan terms have become longer to make the payments more affordable. But as noted, there are risks with that. I could not imagine paying for a vehicle for 8-9 years. It's bad enough at 5 years.
The other thing I didn't mention is that by extending the loan term to an unnatural length, one also is increasing the overall cost of borrowing (how much total interest will be paid over the life of the loan).

Example 1: $60,000 loan @ 3.5% over 48 months = monthly payment of $1341.36 with a total interest cost of $4,385.28

Example 2: $60,000 loan @ 3.5% over 96 months = monthly payment of $717.48 with a total interest cost of $8,878.38

So yes your payment is lower but you end up paying about $4500 more for that vehicle.
 

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The amortizations are long because the prices have risen to absurd levels while the middle and lower class wages have lagged behind cost and inflation for decades.
And when the vehicle is depreciating faster than you can pay it off, that just further traps the working class into what amounts to financial slavery. You can't sell the vehicle because you're still underwater on the loan balance even 4 or 5 years into it.

There's also a long term negative effect on new vehicle sales. Used to be the turnover cycle started around 4 or 5 years when you'd pay off your vehicle and then maybe sell it or trade it and get something new. Now if you're locked into a loan for 8 or 9 years, well you're going to be stuck with that vehicle that much longer and that means a slowdown in the overall new car sales market because there's fewer buyers coming back.
 

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And when the vehicle is depreciating faster than you can pay it off, that just further traps the working class into what amounts to financial slavery. You can't sell the vehicle because you're still underwater on the loan balance even 4 or 5 years into it.

There's also a long term negative effect on new vehicle sales. Used to be the turnover cycle started around 4 or 5 years when you'd pay off your vehicle and then maybe sell it or trade it and get something new. Now if you're locked into a loan for 8 or 9 years, well you're going to be stuck with that vehicle that much longer and that means a slowdown in the overall new car sales market because there's fewer buyers coming back.
Corps need that endless growth in profits and endlessly increasing white collar salaries though!
 
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