Starrs
TJ Guru
Cool. Your fortunate to be able to do that. Lots of loans on TJs these days unfortunately. People will never get ahead going the way some are.
Sold the TJ and picked up a new JLU
- Thread starter ScottB
- Start date
Not arguing, and amazed this thread is still going.....Serious question. What financial institutions are carrying notes on TJ's. 14 years old being the newest possible situation for the vehicle? I suppose a secured loan at least, them using the vehicle as collateral. Not a person using a signature loan or something else as collateral?
A few years ago I did do a small note on a TJ and it was tough, they Barely did it. And this was a local credit union and I have stellar credit. Scores above 800. And I was literally doing a 24 month note.
Starrs
TJ Guru
Interest rates have to be sky high and the total loan can’t be more than 48 months I wouldn’t think. I have no idea tho. But people are getting loans on these things because they can afford to pay in cash.
I had a loan on my LJR. My CU had a really good rate of 2.75% for 10 years or newer or 4% for certain vehicles over. As I mentioned previously, Id rather use someone else money at a small interest, put my money in mutual funds and investments that have so far this year, returned 31%. Easy decision for me. Worst case, I pull some cash and pay it off.
Edit: Also, I was using my "extra" cash to toss in when the market was low in March/April. Rode the wave for a bit. Vehicles are depreciating assets in my eyes. Just don't get caught in a high interest, long term and you'll be fine. Mine was 60 months on the LJ
Edit: Also, I was using my "extra" cash to toss in when the market was low in March/April. Rode the wave for a bit. Vehicles are depreciating assets in my eyes. Just don't get caught in a high interest, long term and you'll be fine. Mine was 60 months on the LJ
Starrs
TJ Guru
Way different scenario than some folks. You have the ability to pay it off your just choosing not too, and I get the investment route. Others are taking high interest loans over and over again lol. Drowning in car debt. I’ll never understand it, but gotta keep up with the joneses I guess.
hardtailpan
TJ Enthusiast
This has been an incredibly entertaining thread. I find it quite funny that us TJ owners are making fun of the computerized gizmos and complicated whatnots in the JL/JK/JT platforms. I started with CJs, and in my youth many of my cars were points and always carburetors. Now, a rig with points and a carburetor is truly something that can be fixed on the trail. No dropping the gas tank to get to a fuel pump. Hell, you can rig a hose from a motorcycle gas tank and strap it to the roll bar to get it home. Points can always be made to run, maybe badly, but they will run, and keeping another set with condenser in the glove box was SOP. Carburetors are the same, you can always make em run. These things require a real catastrophic failure like a rod thru the block to stop you...and I've seen motors that have kept running after that!
My point is, what do you think the CJ crowd says about our TJs? I love the TJ platform. I find it an excellent mix of the older CJ type platform but with just the right amount of refinements. I've rented a JK/JL before and found it to be very much like any other SUV I might rent. This doesn't make it good or bad, just not what I want in a Jeep (or in a car or truck for that matter, but that's another story). The TJ and prior platforms I would imagine have always been kind of niche, while the newer (JK/JL/JT) platforms are much more user-friendly for families and every day drivers.
I hate to make this comparison, but think about the Hummer. The original hummer sold to the public was basically what the military was runnning (H1). A wide, heavy, slow, diesel powered tank. Awesome for what it was designed for, horrible for a daily driver. Very niche. What happened? They kept the name and created a similar body on a regular truck chassis and voila, the H2/H3, whatever the hell they are now. Just a plain daily driver with a body reminiscent of what it once was.
My point is, what do you think the CJ crowd says about our TJs? I love the TJ platform. I find it an excellent mix of the older CJ type platform but with just the right amount of refinements. I've rented a JK/JL before and found it to be very much like any other SUV I might rent. This doesn't make it good or bad, just not what I want in a Jeep (or in a car or truck for that matter, but that's another story). The TJ and prior platforms I would imagine have always been kind of niche, while the newer (JK/JL/JT) platforms are much more user-friendly for families and every day drivers.
I hate to make this comparison, but think about the Hummer. The original hummer sold to the public was basically what the military was runnning (H1). A wide, heavy, slow, diesel powered tank. Awesome for what it was designed for, horrible for a daily driver. Very niche. What happened? They kept the name and created a similar body on a regular truck chassis and voila, the H2/H3, whatever the hell they are now. Just a plain daily driver with a body reminiscent of what it once was.
HardSell
TJ Enthusiast
Three axioms: 1) Assets are counted against debt. 2) As market gains evaporate, debt remains. 3) Market losses are recoverable only in the absence of debt.
They are out there. My CU financed 100% of an LJ including taxes and etc three years ago to the tune of four thousand over high book without hesitating. Didn't even ask about any details. I paid it off in a few months but they didnt know that was going to happen.
When I bought my 06 LJ Rubicon they would have financed it for the full amount. 2.75 apr for 60 months if I wanted. I financed half and put the rest in savings. The loan will be paid off in 2 more months. 20 months ahead of schedule. When I looked into buying the Ferrari blue aev lj cross Jeep, financing sucked. They would only loan 11k which is what ”book value” was. I didn’t feel like pulling 25k out of savings so I passed on it.
HardSell
TJ Enthusiast
Here's a screen shot of sage advice and observations from others expanding on the three axioms you choose to
mock:
If luck convinces you that you're a genius, hopefully then, enough wisdom remains for you to be thankful.
I’m not refuting your statement. You’re making assumptions that ones debt can’t be paid off, which any financial advisor would ask. That’s drastically changes ones debt situation. Also, you’re assuming that markets lose, which in short term investments or real estate or “business” opportunities, that’d hold truth. Long term investing, mutual funds etc are much more safe and even a mediocre investor can return 10% per year, given nothing like a pandemic occurs. If ones investments are returning higher rates than interest on a loan, you’re leaving money on the table. Simply by not buying my LJR in cash, I took that money in March and nearly doubled it. Risk? Sure. So is buying a vehicle over book that insurance companies wouldn’t pay you back for what you paid. Terrible investment.
But please, keep doing what you’re doing cause it works for you. I’ll keep doing it my why which has worked for me. Largely, there’s a major difference between us, several. I at least can say I respect your opinion.
I'm with @HardSell on this one, although the word "mock" needs to be left in the 19th century where it belongs! 
Not spending any more money than I had to was a large part of the reason I was able to retire 10 years early. Dumping cable TV, no smartphones or other overpriced idiocy, paying off and then staying out of borrowing money, etc.
Not spending any more money than I had to was a large part of the reason I was able to retire 10 years early. Dumping cable TV, no smartphones or other overpriced idiocy, paying off and then staying out of borrowing money, etc.
HardSell
TJ Enthusiast
You and I share a common satisfaction. I have no regrets retiring 30 years ago after paying off my house (never had cable nor a cell phone giving me 20 more retirement years, LOL! Though I did have to work another 10 years for my Mac). Despite holding a lot of stock, a couple friends died before they paid off their bigger houses, choosing instead to delay retirement for tax and SS benefits. Poor souls never experienced doing things in their own time on a daily basis as I have now for decades. Good to know a few of us are around to do that. Tomorrow is never granted. Been going strong for eight years following a surprise stroke happening, thank God, a few weeks after getting on medicare. Recognizing the advantages of my life style, both my sons, not yet retired, live in free and clear homes also driving free and clear older Jeeps. Subsequently, their minds are free to help deal with the inevitable mid life surprises without having to shuffle debt obligations.
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Cheers to you both. I’m 34 and on the pace I’m currently going, I could retire by 45-50 and live very comfortably. “Planning” is all I can do as I choose to enjoy the life I desire. You guys are ok with living minimally. Kudos to you both. Neither way is wrong.
I've know several guys who had just managed to achieve "the dream", whatever that was for them, and then keeled over dead. Life's too short to keep working because of needless luxuries. My TJ is probably the "stupidest" thing I've ever bought, and I thought long and hard about it, and certainly wouldn't have bought it when I was younger. Hell, I even waited until I was 50 to get a tattoo! Wanted to make sure that it was something I could live with, and would still look halfway decent at 80.
Welding Goats
Member
Understood. It’s about perspective. I could die tmrw. At least I can say I lived and did/bought the things I’ve always wanted. And still leave plenty behind for my loved ones.
hardtailpan
TJ Enthusiast
I don't know how this thread devolved into personal finance, but I'm in the little to no debt camp where it makes sense. I had a 3% mortgage that I didn't paydown as back then you could get CDs that payed more than that and it was tax deductible. Things have changed so I paid it off. I'm not a no cell phone (need one for work anyway and its my only phone ) or no cable guy but I've never had a car loan (or a new car for that matter), and I currently have no debt. I'm still working, but that is now by choice.
As for the people who leverage their life to get everything they want early in life, there is absolutely nothing wrong with that. I know many people who plan to work forever because they love it. That's not me. Plus, we need people to buy the products to support the companies we buy stock in
Different strokes and all, enjoy the ride!
Starrs
TJ Guru
34 here. House paid off this year, and debt free. No cable/satellite tv. I do have a cellphone. I enjoy having zero payments now minus water, electric, insurance, cell phone. It’s amazing how ones wealth grows so quickly when the spending stops..