I Think I'm Going to be Sick

"HFV has no HFV. But somehow has 2 motorcycles" (hondasfordsvolvo)
11/28/2018 at 14:31 • Filed to: dasalottamoney

In all the excitement of the Gladiator I decided to build and price myself a Wrangler JL. What I spec’d out is a middle of the road Sport S with the the diesel engine, limited slip rear diff, remote start, cold weather package, upgraded stereo, and all weather floor mats. Grand total MSRP was just over 42,000 dollars.

but this is the part that makes my stomach turn. the monthly payment, with an insane 4.3% interest rate (higher than my freaking mortgage) the monthly payment is over 700 bucks a month. with 4k down at signing.

I’m not a rich man, and I’m not a poor man either, but I can’t stomach having that much money every month tied up in a car payment.

Assuming the Gladiator will be at least 2-3k more than the equivalent JLU, I don’t think I’ll be buying one, even if my career takes the turn I want it too.

DISCUSSION (17)

WiscoProud > HFV has no HFV. But somehow has 2 motorcycles
11/28/2018 at 15:16

Interest rates are increasing, and an auto loan will always be higher than a mortgage due to the types of asset they are (appreciating vs. depreciating). Not to mention cars are simply expensive now. I presume you’d be able to get it for less if you can find one sitting on a dealer’s lot, rather than building it though.

KingT- 60% of the time, it works every time > HFV has no HFV. But somehow has 2 motorcycles
11/28/2018 at 15:17

Wrangler prices are not for those of faint hearts, or light wallets.

Nothing > HFV has no HFV. But somehow has 2 motorcycles
11/28/2018 at 15:18

The partial good news? It’s easy to get s good deal on a JLU right now. My local dealer, that’s not known for being great for dealing, was done to 3% under invoice and willing to stack the 1% Tread Lightly under invoice with that. I was at $42k on a Rubicon with a handful of options.

The not so good news? That monthly payment doesn’t include sales tax, either. You can get better rates than Chrysler, though.

All that said, I’ve come to the same point. I see the numbers in front of me, and I balk. And I’ve got a significant chunk of equity to trade in, too. Being so close to paying off the truck, it makes it hard to jump back into longer payments.

HFV has no HFV. But somehow has 2 motorcycles > WiscoProud
11/28/2018 at 15:20

I’ve never had an auto loan at over 3.5%, and my wife’s last auto loan was 1% . Accept for my very first loan, which due to my circumstances had me at 16% interest... yeah. No down payment, no credit history, being 18, and buying a 9 year old car adds up.

I assume there is some way to get that interest rate down if you have excellent credit but its odd that there’s nothing advertised on the website.

nermal > HFV has no HFV. But somehow has 2 motorcycles
11/28/2018 at 15:21

You forgot taxes & fees, so actual price will prob be higher.

Also, this is why people do 84 mo loans on new vehicles . According to my math, if you add in 7% tax and $500 in fees, your payment will only be $546 @ 5% interest.

HFV has no HFV. But somehow has 2 motorcycles > nermal
11/28/2018 at 15:23

but thats also a freaking 84 month loan. as in the car will be completely out of warranty 2 years before your done with that payment.

nermal > HFV has no HFV. But somehow has 2 motorcycles
11/28/2018 at 15:33

It will actually be out of warranty 4 years before the loan is paid off - New Jeeps are only 3 yrs / 36k bumper-to-bumper and 5 / 60 powertrain.

The dealer will gladly sell you an extended warranty for $3k to cover that. It will add about $40 to your payment.

WiscoProud > HFV has no HFV. But somehow has 2 motorcycles
11/28/2018 at 15:37

Loans that rate are basically subsidized by the automakers as an incentive to purchase their car from a dealer. My credit union is offering 3.6% on a 60 month new car loan if you have a checking account with them, 3.8% without. So 4.35% is a bit high, but personal factors will greatly influence that.

RPM esq. > WiscoProud
11/28/2018 at 15:51

The lowest rate available on a standard 30-year fixed-rate mortgage near me the last time I compared for myself was 3.8%, and the lowest auto loan rate available at the same bank was 2.7%. Currently, it’s 5% and 3.6%, respectively, at the same bank . That’s a random credit union, not a carmaker’s finance arm with incentives.

I think t he reason for this has more to do with the term (over 30 years there is a risk that a home will become a depreciating asset too) and balance (cost/benefit analysis of the cost of a default on a $ 250,000 loan versus a $ 20,000 loan) than with the initial projected depreciation of the asset securing the loan.

RPM esq. > WiscoProud
11/28/2018 at 15:52

What is the mortgage rate the same credit union is offering?

WiscoProud > RPM esq.
11/28/2018 at 16:05

4.75% for a 30 year advertised. It should be noted that the Fed has raised interest rates 0.25% each quarter this year, and has signaled they’ll continue to do so.

SilentButNotReallyDeadly...killed by G/O Media > HFV has no HFV. But somehow has 2 motorcycles
11/28/2018 at 16:38

This is why FCA need to be careful in other markets...

Land Cruiser dual cab is equivalent to US$55,000, comes with a V8 turbo diesel and a nigh on bullet proof reputation.

But the real problem for them is the Hilux and the Ranger. The Gladiator will be in their class and its starting price will be at the premium end of their range where they are full of fruit. That's going to be a hard sell for Jeep Oz...sure they'll sell their first allocation but after that it'll be tough.

Your boy, BJR > HFV has no HFV. But somehow has 2 motorcycles
11/28/2018 at 17:48

Well DUH, it’s a diesel truck. I don’t think there’s a single one of those stateside under $40k

What does an equivalent duramax Canyorado go for?

HFV has no HFV. But somehow has 2 motorcycles > Your boy, BJR
11/28/2018 at 19:13

It’s only a 1000 dollar up charge from the pentastar

HFV has no HFV. But somehow has 2 motorcycles > SilentButNotReallyDeadly...killed by G/O Media
11/28/2018 at 19:14

all but the Ranger don’t exist in the US

SilentButNotReallyDeadly...killed by G/O Media > HFV has no HFV. But somehow has 2 motorcycles
11/28/2018 at 21:01

Oh I’m aware of that. However, Jeep want to sell these every where. And they are up against every other mid size trucklet out there. It might be lon ger than most (8" in the case of the Hilux), lighter than most and more capable off road than most but if it’s more expensive or less featured than a similarly priced dual cab then that’s going to be a struggle for Jeep to counteract in the long-term. I for one can’t step up for a AU$60,000 dual cab ute. But a $35,000 Mitsubishi Triton or Isuzu dual cab ute ... probably yes.

Yowen - not necessarily not spaghetti and meatballs > HFV has no HFV. But somehow has 2 motorcycles
11/29/2018 at 16:15

Yeah, the days of a Wrangler being priced as a utilitarian vehicle are very much over.