Obtaining financing for an LJ

LJtheunicorn

LJtheunicorn

TJ Enthusiast
Supporting Member
Joined
Dec 15, 2020
Messages
410
Location
Dallas, Texas
Happy Wednesday TJ Community!

My wife and I are planning to buy a TJ in the next few months so we are starting to look into financing options and the like. We would like to pay cash for a Jeep but in the event we find the perfect one outside of our cash allowance we want to be ready and knowledgable with our financing options. The Jeep must be an LJ and we prefer to keep it under 100k miles. This will be a third vehicle for camping trips in the beginning that many years and dollars from now will be a dedicated toy.

Capital one I know finances vehicles this age but they will not finance an individual to individual sale, only from a dealership. I am not against buying from a dealership but I do not want to limit myself as I feel the better deals and maintenance records will be found buying from an individual.

I have done some research and talked with Penfed credit union and they are one of our only candidates as of now if we choose to buy from an individual. Please share your financing adventures on TJ's that have been within the last couple years. I read somewhere on here Navy Federal finances these things but we are not in any relation military.

Thanks in advance!

We are located in North Texas if anyone has the prime candidate currently for sale! We would love one that has already been regeared for 33's but stock is great too.
 
I used Discover years ago on a private loan for a motorcycle. Interest rates are high at 9-10% but they will give you cash. If you pay it off early you can minimize the Interest damage.
 
Dunkut88TJ said:
I used Discover years ago on a private loan for a motorcycle. Interest rates are high at 9-10% but they will give you cash. If you pay it off early you can minimize the Interest damage.
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Penfed can finance an autoloan with 3.89% interest for 48 months. Were planning to have it paid off within 2-3 years no matter what so the interest at that rate would not be too bad.
 
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LJtheunicorn said:
Penfed can finance an autoloan with 3.89% interest for 48 months. Were planning to have it paid off within 2-3 years no matter what so the interest at that rate would not be too bad.
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Do what works for you! When I get cars I take the longest term with lowest payment just as a precaution if something were to happen. I typically pay them off in half of the term. For me it’s just nice to know that if difficult times arise I can pay $300 vs 6-700$
 
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I'm in Austin, and use Austin Telco Federal Credit Union. There should be many Credit Unions in Dallas, I think Texan's was one.

Mine will do a finance, but only 36 months on person to person etc.
 
Dunkut88TJ said:
Do what works for you! When I get cars I take the longest term with lowest payment just as a precaution if something were to happen. I typically pay them off in half of the term. For me it’s just nice to know that if difficult times arise I can pay $300 vs 6-700$
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That's the discussion I had with the wife last night. If we keep it under 100k then Penfed will finance for 48 months which drops the payment by a lot. Our plan is to overpay by a long shot and pay it off in 2 years. I am just reaching out to see what our other finance options are and everyones opinions on them.
 
I always recommend against financing a vehicle, but I don't always follow my own advice.

I recently bought an LJ with the intent to swap over my entire build from my TJ onto it before selling the TJ. That means I had to own both at the same time. I had "enough" cash but not enough that I would be comfortable after spending basically all of it on the LJ. My credit union doesn't loan on vehicles over 10 years old. Fortunately my wife drives a (then) 9 year and 10 month old Toyota 4Runner that was free and clear so I financed that instead. If I'd waited 2 more months until 2021 I'd have been hosed.
 
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When I got my LJ in late 2019, I could pay cash upfront, but I opted for financing when I bought it from a used car lot. I looked at local credit unions and only one would take on a vehicle over 10 years old. The rate was good, but in the end, I just financed it directly from the dealership at a super low rate. I kept in touch with the owner of the dealership somewhat frequently. Fast forward about 5 months from when I got it and the covid shutdowns began. With business slow, he told me that he'd give me a $1500 discount if I paid the remaining balance in full. I jumped on the deal.
 
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Lightstream is good for older vehicles, though I can't speak on what their approval tendencies are. They just dump the funds into your account so you can pay cash.
 
As I understand it, most banks will not finance a used car over 10 years old. Even so, some will but from dealerships. Note, most of the time the term 'dealership' excludes used car lots as they mostly consider a dealership one that sells brand new (and certified used) vehicles. IE Toyota of so-and-so, or Galpin Ford.
 
@Chris, that's what we did for this one, decided on the budget for the vehicle, requested it, then ended up getting one for way less and used the remainder in parts to get it to where I want it to be. Tires and alignment being done as we speak (type) , all within the previously decided upon budget through lightstream.
 
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Borrow against one of your paid off existing vehicles. Easier to get the funds and shop for a Jeep. If you wait and find something you like you risk losing it if the bank drags its feet. Also the rate will be better.
 
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