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Anyone who does early trade-in

4K views 55 replies 35 participants last post by  Kriden 
#1 ·
I got a '15 Sport JKU back in March, it was the very first thing I ever financed so the interest is out of this world. The only Wrangler the dealer could get me approved on was a base model Sport despite me wanting a Rubicon to start with, and by base model I mean incredibly bone dry. No power anything, base stereo without Bluetooth or even Uconnect. 16" stock wheels with 225/75/16 tires. Essentially my Jeep is like going to the Jeep website, clicking build and price and just picking a JKU and going straight to the summary page, do not pass go, do not collect $200.

My question for all of you who have gone from MY to MY (ie. 2012 to 2013, or even say, 2015 to 2015 because of some sort of buyers remorse), how has that went? I went to the dealer for some touch up paint yesterday and they remembered me and brought me in to see how things are going and perhaps lower my monthly, and thanks to the huge interest (I'm assuming here, this is still all very new to me) even with 5 payments I've already "established" myself with Chrysler that he said I could upgrade to a new Sport S and still have a lower monthly than I have now. My heart is still on the Rubicon though. My Sport actually has positive equity right now, they mentioned it at the dealer yesterday but not exactly how much, according to KBB however it's worth a little over 4 grand more than I paid for it.

So for those of us not in the 1% and don't have an outrageous expendable income, how did you deal or rationalize the leftover loan amount that inevitably rolls over into the cost of upgrading MY?

I love my Sport, don't get me wrong. I've wanted a Wrangler since I was a kid, and I've wanted a Rubi for years. So I did get the vehicle I wanted, but it's like craving a really delicious thick burger and your wife comes home with a McDouble. It's still a burger, but it doesn't exactly hit the spot.

This ended up being a way longer post than I anticipated.
 
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#2 ·
Well it's obvious you want a Ruby so why even bother going through the PITA to move up to a Sport S? Have you considered seeing if you can swap into a used Ruby?
 
#5 ·
Well I told him I had no interest in just going to a Sport S, it was either a Rubi or stay in my Sport until I can get into a Rubi. The quote he offered me for a new '15 Rubi added roughly $200/month to what I'm already paying for the Sport. Which doesn't sound so bad except for my initial interest rate being so high that $200 is fairly steep right now. I've just heard from so many people that refinancing for a lower APR is a silly thing to do unless it's a last course of action that I feel like I'm stuck till sometime around when the 16MY is in full swing unless I just take it on the chin and cough up some more money.
 
#3 ·
Depending on your chosen career path, family, and other plans the advice might vary quite a bit. The smartest thing to do would be to save and wait until you can decide to sell, trade, or upgrade. Just because you can finance something doesn't mean you should. It's difficult not to impulse buy, but you need to put some numbers down on paper to figure out what your budget should be and how taking on more debt is going to affect you long term. Dealerships are never your friend, and they are never going to do you a favor. They want your money. They can be nice about it, but it's business.
 
#7 ·
Wise advice: Write it down and figure out your finances. I remember wanting a Jeep the worst way when I was in the service. The dealer even let me drive it for the weekend. I went back did the numbers and found I'd be living for the jeep. With that said I'm out of the service and can now afford several Jeeps over the years. Remember WANT and NEED are two different things. If I were you I'd be happy with what I have until I can do better.
 
#4 ·
There is plenty you can do with a bare bones Jeep. Take it as an opportunity to build the Jeep up as you want it to be, not how some Chrysler engineer thought it should be. Otherwise, have patience my friend. There are many things in life we would all love to have, but the best way to get there is to enjoy what you have and save for what you want. I would suggest that you try a local bank or credit union to refinance your current Jeep as to see if they can get you a better rate.
 
#6 ·
Drive that Sport until you've saved enough money to pay 20% down on a Ruby. By that time I wouldn't be surprised if you don't want to part with the money. And, if you do, you're going to be in a much better negotiating position. You will have a good payment history to go along with a good down payment.
Slap some sexy shoes on that thing and wheel the hell out of it.
 
#10 ·
@wjfawb0 ... x2.

@Eagle71 ... I do the same thing. I use an excel spreadsheet for all my fixed expenses each month so I know where I stand. The remainder goes to my savings.

As for @DansJK ... I traded my 2012 jku for a 2014 trailhawk then the 2014 trailhawk to a 2014 jku (only due to the new addition to my family). Each time my interest rate went down during the trade in and I really didn't lose much. The only regret is that I really really loved the cherokee, so we ended up getting another KL, but a latitude version 2 months after my 2014 JK purchase.
 
#11 ·
don't do it... it's a trap...
the friendly sales drones are just looking to score another commission off you...
the only ways you can significantly lower your payments are:

  1. trade high cost vehicle for lower cost vehicle
  2. significantly lower interest rates
  3. or stretch out the time to pay it back...
the only really good option above is #2, and as an extra bonus to #2 is the fact that you do not need a dealer to do it for you... check with local credit unions, banks, your insurance company,etc at various times of the day/week/month they all can have decent to great refinancing deals... you can even throw in a little of number 3 above, for an extra bit of happiness... just be careful with #3, a little goes a long way... but it can really screw up your future...

as far as your jeep goes, No power anything? no power brakes or steering? I didn't even know that was an option? my first jeep was manual everything... I loved that jeep...

my rubi has got power power everything, I guess the power windows and mirrors are ok when the doors are on... seems mostly useless when they are off though, unless I am missing something?
but as for the mirrors, how often do really you spend time adjusting them? seems like a waste... one problem with buying a jeep off the lot, you get stuck with a lot of useless add on fluff whose only purpose in life is to fluff up the $$$

Sport = Jeep
Rubi = Jeep
the only difference is in the options, and the nice thing about options is that you have options on how to apply them...
you should be able to fairly easily add the rubi options to the sport yourself over time spreading out the additional cost into manageable chunks...
and the great thing about doing the options yourself is all the choices...

  • you can get factory stock parts
  • you can get cheap after market parts of similar quality to stock
  • or you can get superior to stock parts...
its all up to you...

you have the perfect base to build into your ultimate Jeep and you are whining about it... just seems odd...

*yes I got a Rubi, but that mostly out of laziness... and I (almost) had the cash (sorta... good credit at least...)
 
#15 ·
you have the perfect base to build into your ultimate Jeep and you are whining about it... just seems odd...
Yes it has power steering and brakes, I meant as far as creature comforts go it lacks anything that a higher trim would have. Mirrors, seats, locks, windows, better stereo, etc. As far as whining goes, I'm not whining at all, I know I have an incredible blank canvas full of potential. I was just asking for opinions on what others have done in similar situations and how it turned out, not complaining. Your post, and this thread as a whole, has pretty sound advice though. Could probably build this into something equal or better than a Rubi with the money saved by not actually buying a Rubi. I already had big plans in the works and lots of upgrades on paper that I want to look into getting to really make it my own. So I think I'll do that and if I feel like getting a Rubi a couple years or so from now, do it then. Like someone else in the thread already said, I may not even want to at that time.
 
#12 ·
This is what happens when you are concerned with your monthly payment instead of the only 2 things that matter: OTD price and interest rate. Negotiate the OTD price as low as you can, and find the lowest interest rate through 3rd party financing. Then if you can't afford whatever the monthly payment comes out to, you can't afford the car.

OP, keep the jeep you bought, and shop around to find a lower interest rate.
 
#28 ·
This is what happens when you are concerned with your monthly payment instead of the only 2 things that matter: OTD price and interest rate. Negotiate the OTD price as low as you can, and find the lowest interest rate through 3rd party financing. Then if you can't afford whatever the monthly payment comes out to, you can't afford the car. OP, keep the jeep you bought, and shop around to find a lower interest rate.
Good advice right there
 
#13 ·
My situation was similar, not due to lack of credit history (which I'm told is worse than bad credit history), but due to me thinking I could live with bare bones only to realize that I wasn't satisfied.
The answer to the question of "how that went" for me is that I am getting a 6k more worth of vehicle, after making payments for 2 years (on a 5 year loan) and my monthly payment will be the same.
If you truly have equity, you won't be rolling anything extra into the new vehicle, but taking some off the price. I am getting around 6k more for my trade-in than I owe on it. It's like having a 6k down payment.
 
#14 ·
It's not as bad as you might think. I came into a situation similar to yours. While we technically could have afforded a $500+ monthly payment, My money manager in residence declared $475 as the ceiling. Came in from a leased Chevy, so didn't really have a significant down payment. Got a brand new, bone stock JKU. Only option we sprang for was the hard top and a trailer hitch. So yeah, 3.21 gears, manual tranny (which I prefer) crank windows, no power locks. Still, it's MY JEEP and I love it. First thing I did was pounce on a set of 5 brand new Rubicon take-off's from Craigslist for $800. I've done a few minor things here and there, but have had no problems off-roading with the 3.21's. I'll keep it for a few more years or until I've got pretty good equity. I'd love to get a Rubi at that point, but don't let Rubi-lust override your brain. You know what the smart thing to do is.
 
#16 ·
just to be clear, the whining comment was just the best phrase I could come up with at the time... more a lack of creativity on my part then an accurate portrayal of reality

what would you do with power windows/locks/mirrors if you had them?
in my experience, they don't do much at all when the doors are off...
and if it is nice out I am pretty sure the law states that the doors must be off...
 
#17 ·
You finally got a jeep, enjoy it! But definitely try to refinance your loan for a lower interest rate, that will save you quite a bit of money over the life of the loan.
One reason I went for the rubi is I was lucky to get over $5K off sticker and 1.67% APR for 72 months.
 
#18 ·
or just get half doors, or soft doors, then your missing "power" options become irreverent...
the 430n in my rubi is ok, but any aftermarket radio would probably be better...
 
#20 ·
this^^^^^^^

give us some specifics.

but the only way to come ahead is to keep each "new" Jeep you buy 3-8 years. Trading any sooner is financial suicide. And the only reason a dealer wants you to trade.... is because they will profit.

$200/month buys lots of cool mods... or even gas.
 
#21 ·
I bought a Silverado about 5 months ago and have regrets. Wish I would have bought the Jeep that I had previously wanted. I let people get in my head... "Jeep is too rough" "Jeep isn't practical". I like the Silverado okay, but still find myself driving by the Jeep dealer on occasion.

So, at least your regret is still a Jeep.
 
#23 ·
You good a Silverado?
You have my sincerest sympathies....
Hope you plan on trading it in soon...
I had a Silverado... Got nothing for trade in for it, the last couple years of owning it was $$$$ in repairs every couple months...
Mostly because Chevy, in their infinite wisdom decided that no one would ever want to drive a 4x4 in anything other than perfectly dry weather, so there is no need to rust proof or even worry about corrosion...
My wheel speed sensors went out - rust
4x4 solenoid - corrosion
Brakes - corrosion
Brake lines - corrosion
The list goes on and on.... I loved that truck, but it had to go...
I implore you, trade it in while you can still get at least some $$$ for it....
 
#22 ·
I went from a 15 to a 16(sport to Rubi). Sport was my first jeep, but it didn't take long for me to want to upgrade.

Yes the rubi is much nicer vehicle, but as you are finding out it costs more. However, you said you have positive equity in your current Jeep so what costs would you be rolling over into the new loan?

In regards to the comments about modding your current jeep; while it's true you could take the money you save from not buying a rubi and create an awesome Jeep, if you ever do want to sell you won't get the price a rubi would bring. Keep it forever, no problem, but always look down the road.

My advice(provided you can afford it) would be to work out the best deal you can on a trade with the dealer(if you can't sell outright). Then secure financing through another source.
 
#31 ·
The same reason anyone on this forum got a Rubicon, they just wanted a Rubicon, it's really as simple as that for most people. I like my Sport and I can build it into something better than a stock Rubi, and probably save money in the process, I'm aware of that, I was just saying it's not what I wanted from the start. After owning it for going on 6 months now it is definitely growing on me, it was just the idea still floating in my head.

As for everyone asking for interest rate, I got 21%. Embarrassing, but when you can't get anyone to co-sign and you have 0 credit history to begin with because you've never financed anything, I just took it as a chance is better than no chance. Used Jeeps on other lots put me even higher than that, I figured I'd just opt for a brand new one with similar payments if it meant so very little change in money spent.

I have a generous income, so I'm able to handle it, otherwise I wouldn't be here posting today. I do know I will be trying to refinance here shortly for a lower rate, because even if I can afford it, it doesn't mean I'm happy with the payments every month.

I feel like most most of the responses to this will be "man you're dumb", or similar, but hey we all make mistakes and we all have to start somewhere. After talking to the better half last night, I decided I'll just keep this, refinance, and build it the way I want to. I'll probably be happier this way in the long run with more money in my pocket.
 
#25 ·
What is your current interest rate? You state it is high but that is subjective. It costs nothing to refinance so a lower rate is simply ALWAYS a good deal. Do the leg work to refinance if ossicle to a lower rate AND a shorter term and get it paid down.

Once you have real equity and a positive credit history you can start shopping for a rubicon.
 
#27 ·
If you don't have a lot of income then it means that it is worth your time to learn about how car loans work.

You are citing "payment" numbers from the dealer. This means you are not going about it in a smart way.

Given a specific sales price and interest rate, you can change the payment by modifying the time of the loan to make the payment be whatever you want.

The more interesting factors here: why is you rate so high?

Go to a credit site and find out. I use credit karma because they are ad supported. They will try to sell you crap loan products instead of charging you. Don't buy anything from them, but use their tools to figure out your scores.

Contrary to popular belief, your income is not reported to the credit agencies (and don't tell them).

This means your score is only based off non-income factors.

Play the credit game for awhile to raise your score. Don't guess "it must be better now" without checking first.
 
#29 ·
a lot of good advice here my 2c

1. Refi is your best friend, cost zero or minor fee can save you a lot of money

2. If your set on a rubi don't break the bank doing it, you won't enjoy it as much when living to make a payment.

Between the wife and I we swap for new nehicles every 3yrs, never trade in negative equity, shop for the best deal in our budget and never go more than planned, if we can't find it we wait. Incentives change monthly and also get competing dealers, their bottom one day will change if your patient.
 
#33 ·
Generous income and 21% don't make sense.

Go refi that thing a.s.a.p.

While doing the refi - ask about qualifying for a loan on a new Rubi. If your not ready now, use your generous income and new lower rate to pay off your stocker (keep it stock). Then sell it or trade it in for the Rubi in 2-3 years.
 
#34 ·
You need time.

As others have said, first there is nothing wrong with a Sport. I just ordered a 2016 Sport and I can buy any jeep I want.

2nd you need to save some money. There is a reason they didn't give you a loan for a $40,000 jeep. Your not ready. That is not an insult, it is an opportunity.

1st save money. You want to get a 20-25% cash down payment. You can use this to lower your payments OR for upgrades. (I saved my lunch money for a year and am paying $20,000 towards my jeep that I'll have paid off in a year).
2nd take really good care of your sport. Put smart but not outrageous upgrades (wheels/tires is a good starting place). Jeeps keep their value incredibly well.
3rd enjoy and use your sport to determine what you want and don't want in your next one.
 
#35 ·
I thought there are state laws that limit max interest rate that dealerships charge?
21% sounds borderline criminal.
You can get an unsecured personal loan for what? 8-10 %

The lenders is Chrysler? I am amazed on how unethical they are if they truly lent you at 21%
 
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