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Old 10-07-2011, 03:31 PM
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Money towards mods or loan?

Just curious those of you who have purchased new (or used) on a loan, when you have extra (hah, yea right) cash laying around, do you tend to throw it towards the next great mod or towards the principal to get it paid down faster and thus save money in the long run for bigger and better mods later?

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Old 10-07-2011, 03:35 PM   #2
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The payments will always be there. Mod it so you can use it! Plus, we have our Lay-A-Way plan that helps make the mods a little bit easier to come by!

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Old 10-07-2011, 03:47 PM   #3
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It doesn't have to be either/or.

IMO, my ballpark comfort zone would be that I would not spend much more than $3k modding a Jeep that had more than $10k or so outstanding on the loan. For me, I'd start to wonder about my reasoning if my mod costs started approaching my loan balance. That's just me.

That said, you don't need to spend thousands and thousands to get a lot of great mods. There's of course no limit to what you can spend, but there are plenty of mods you can do for under a $100, and plenty more you can do for a few hundred bucks.

And it's not like you need to do all your mods at once. Most everyone treats their jeep as a "hobby" that gets modded over time. Once my loan was under $10k, I'd be more willing to invest more.
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Old 10-07-2011, 04:08 PM
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@MTH,
Yeah that's my though, hopefully I'll be picking up the new ride today and I've got plenty of stuff that I yanked from my truck, so I'll be busy without spending a dime for a while, then some easy stuff like brackets for CB/HAM and other electronics, my first big purchase is probably going to be a winch and install it hidden behind the front plate like I've seen a few do... I've already got a dual battery setup to put in (also yanked from the truck). I am certain I can keep myself busy for several months with just what's in my garage before I get the urge to spend a ton of money..
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Old 10-07-2011, 04:12 PM   #5
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Exactly.

There's also some "cheap mod" threads floating around too about low cost things you can do. The reality is that while you can blow endless sums of cash, Jeeps can be pretty inexpensive from a mod standpoint--you can do a whole heck of a lot with $5k for example.

So I think you'll strike a balance and be fine.
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Old 10-07-2011, 06:07 PM   #6
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Mods!!! More incentive to make the payments!!!! : )
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Old 10-07-2011, 06:15 PM   #7
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My advice: Pay cash for all your mods. If you take a loan, you get it all at once. Then you're stuck paying them off long after the newness has worn off.
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Old 10-07-2011, 09:07 PM   #8
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I do both. I set aside about $30-$50 of every paycheck and mail it in once a month with "apply to principal only" written on it. Not much, bet should save me quite a bit in the end.
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Old 10-10-2011, 09:11 AM   #9
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I have always made a point to pay for everything I own. I have no loans. I know it is tough when you are young, I have been there. We all want what we cannot afford.

I didnt always have a new vehicle. I have paid 500$ for a car in the past. I drove what I could afford and saved my money. Same with my home. I lived where I could afford and paid cash for my first small home. If you look over your life and what you have paid in interest it would be amazing.

I know it is tough, and we do not all have that amount of disipline. But I own my home and all my vehicles. When I was younger and had more energy, I worked multiple jobs. I have never collected a day of unemployment in my life, and no one has ever given me a dime. It was tough getting to this point, but my Dad was right. I sure do miss him.
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Old 10-10-2011, 09:57 AM   #11
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towards the principal to get it paid down faster and thus save money in the long run
Personally, I think you have already answered your own question. Listen to TroutSafari. Advice to live by [as hard as it is to follow].
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Old 10-10-2011, 10:08 AM   #12
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Originally Posted by Merlin75 View Post
Just curious those of you who have purchased new (or used) on a loan, when you have extra (hah, yea right) cash laying around, do you tend to throw it towards the next great mod or towards the principal to get it paid down faster and thus save money in the long run for bigger and better mods later?
Unless you're getting zero percent financing, I would put it towards the principal. By the time your payment plan is finished that interest money would have been mod money. Whether your total for interest on the big end is 1k or 5k, IMO it's very much worth putting towards the principal.

If you're extraordinarily impatient then by all means blow your money!
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Old 10-10-2011, 10:09 AM   #13
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Kinda depends on the "loan interest rate!"

If the loan company is charging you less than 3%, it makes sense to be a debtor and do the mods, or better yet, invest the money...

If the loan company is charging you more than 4%, pay it off ASAP. Like someone said, even make principle payments early and you'll come out way ahead.

If the loan company is charging you over 9%, you need to find a new loan company... you are getting the shaft!

compound interest facts do matter.
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Old 10-10-2011, 10:12 AM   #14
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I have always made a point to pay for everything I own. I have no loans. I know it is tough when you are young, I have been there. We all want what we cannot afford.

I didnt always have a new vehicle. I have paid 500$ for a car in the past. I drove what I could afford and saved my money. Same with my home. I lived where I could afford and paid cash for my first small home. If you look over your life and what you have paid in interest it would be amazing.

I know it is tough, and we do not all have that amount of disipline. But I own my home and all my vehicles. When I was younger and had more energy, I worked multiple jobs. I have never collected a day of unemployment in my life, and no one has ever given me a dime. It was tough getting to this point, but my Dad was right. I sure do miss him.
If every citizen in the U.S. began taking advantage of this type of thinking we wouldn't be in this financial mess as a country. I like the fact that you're still out there!
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Old 10-10-2011, 10:23 AM   #15
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If every citizen in the U.S. began taking advantage of this type of thinking we wouldn't be in this financial mess as a country. I like the fact that you're still out there!
I thought living in debt was the American way? No?
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Old 10-10-2011, 10:36 AM   #16
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Hookers and blow.
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Old 10-10-2011, 10:43 AM   #17
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hookers and blow.
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Old 10-10-2011, 11:18 AM   #19
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Loan for sure. I took a loan out on mine, but that was to build credit still. I'm only 23 and don't have a long credit history. I usually try to make double payments on the loan and put 20% down. I keep about $600 a month extra to throw on to either car payment right now.
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Old 10-10-2011, 11:22 AM   #20
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The payments will always be there. Mod it so you can use it! Plus, we have our Lay-A-Way plan that helps make the mods a little bit easier to come by!

-Jason

The problem IS, you're leaving yourself vulnerable to a crash if you have payments on a built-up Jeep (Jeep note plus credit card charges), and THEN you have something major blow out on you. If your cards are maxed out and you need to get it fixed, who are you going to call for a loan when they see you are at 100% on your debt to credit limit ratio?

If you are disciplined enough in your finances (and I'm assuming you make twice what I do), You can pay that Jeep off in about three years, which is what I'm attempting on a 6-year note. Why don't you do a combined approach? Meaning, Get that payment down for about three-five months (winter is coming anyway, and your Jeep is more than capable of handing the winter conditions as is), so that you don't have a due payment for a while and use the extra money to pay for the mods IN CASH until it's time to get back into the payment cycle. What I have done in the past is notify the loan company, "Please apply this payment to the months of November through March."

My question to you, Krawler - what happens if things go south in a hurry and I need money to pay for such things - do you offer a return of my money if I have to abort the lay-away plan? I'm not comfortable with your approach of stacking on short-term debt on top of a Jeep note unless you know for sure you can pay it off in one spot if things go south.
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Old 10-10-2011, 12:16 PM   #21
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Hookers and blow.
Perfect example. Hey they have to make a living to..

And while you are paying interest on your loan, your dealer and your fancy street date will be buying there mods with your cash.
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Old 10-10-2011, 12:20 PM
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I have always made a point to pay for everything I own. I have no loans. I know it is tough when you are young, I have been there. We all want what we cannot afford.

I didnt always have a new vehicle. I have paid 500$ for a car in the past. I drove what I could afford and saved my money. Same with my home. I lived where I could afford and paid cash for my first small home. If you look over your life and what you have paid in interest it would be amazing.

I know it is tough, and we do not all have that amount of disipline. But I own my home and all my vehicles. When I was younger and had more energy, I worked multiple jobs. I have never collected a day of unemployment in my life, and no one has ever given me a dime. It was tough getting to this point, but my Dad was right. I sure do miss him.
Actually that IS how I tend to live, pay for everything with money I have (I do use a credit card but it's paid off every month) I just didn't have $30k laying around at the time so now there's a loan lol.. That said, my way of life not borrowing money almost shot me in the foot! Getting the financing with only one credit card on my credit report and it never having a balance over $3k proved to be troublesome =(

Anyways thanks all for the input! I'll do some free and low cost mods but save the big stuff for when she's paid for
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Old 10-10-2011, 12:57 PM   #23
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Doesn't that suck?!? If you are debt free and don't borrow money the one time you want to you get screwed with a terrible rate! I got dinged once for never having a balance on my one credit card. (paid off every month) just doesn't make any sense to me.
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Old 10-10-2011, 01:27 PM   #24
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Doesn't that suck?!? If you are debt free and don't borrow money the one time you want to you get screwed with a terrible rate! I got dinged once for never having a balance on my one credit card. (paid off every month) just doesn't make any sense to me.
If your not in debt, your nobody.
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Old 10-11-2011, 06:37 AM   #25
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I have always made a point to pay for everything I own. I have no loans. I know it is tough when you are young, I have been there. We all want what we cannot afford.

I didnt always have a new vehicle. I have paid 500$ for a car in the past. I drove what I could afford and saved my money. Same with my home. I lived where I could afford and paid cash for my first small home. If you look over your life and what you have paid in interest it would be amazing.

I know it is tough, and we do not all have that amount of disipline. But I own my home and all my vehicles. When I was younger and had more energy, I worked multiple jobs. I have never collected a day of unemployment in my life, and no one has ever given me a dime. It was tough getting to this point, but my Dad was right. I sure do miss him.
good morning,
I don't have anything to add..except I love what you wrote
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Old 10-11-2011, 08:51 AM   #26
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just doesn't make any sense to me.
Oh, but it does... This is how the bankers make their money. "Revolve your balance for a while, and we'll talk. Otherwise, screw us out of our interest, and you're not getting that Jeep at a favorable rate."

You do your end-run around that by agreeing to the terms, and then paying the living hell out of that loan, depriving them of the interest anyway. Squeeze the B*. HARD.

Now, another reason for using credit is to protect whatever savings you have from EVER being used for emergencies, if at all possible. Consider the interest rate as a "fee" for keeping your savings from ever being touched, because once you spend your savings, it's gone forever. You're not getting it back EXCEPT through additional hard work.
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Old 10-11-2011, 09:09 AM   #27
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Exactly why we financed our jeep. Keeping savings in savings. I might even ride this loan out. I haven't decided yet. I got a good rate for my age and credit history. Figure it can't hurt to keep for 36 months then pay off.
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Old 10-11-2011, 09:22 AM   #28
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The whole credit system is a joke.
If you've never had debt, you have no credit.
If you currently have no debt, it hurts your credit.
If you have too much debt, it hurts your credit.
If you don't have enough debt, it hurts your credit.
If you pay off a credit card and close it out, it hurts your credit.
If you have too many credit cards, even with $0 balances, it hurts your credit.
If you don't have enough available credit, it hurts your credit.

I have excellent credit, but I still say screw the credit reporting system. The whole scam is set up to keep you paying. The best thing you can do for yourself in this economy is to pay off all your debt as soon as possible, because your credit score isn't going to mean a thing when a loaf of bread costs $20. Your credit is based on the U.S. dollar, and as it gets weaker, your debt technically increases, because the price of everything outside of your loans goes up. Your buying power gets decreased.
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Old 10-11-2011, 09:26 AM   #29
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Originally Posted by TroutSafari View Post
I have always made a point to pay for everything I own. I have no loans. I know it is tough when you are young, I have been there. We all want what we cannot afford.

I didnt always have a new vehicle. I have paid 500$ for a car in the past. I drove what I could afford and saved my money. Same with my home. I lived where I could afford and paid cash for my first small home. If you look over your life and what you have paid in interest it would be amazing.

I know it is tough, and we do not all have that amount of disipline. But I own my home and all my vehicles. When I was younger and had more energy, I worked multiple jobs. I have never collected a day of unemployment in my life, and no one has ever given me a dime. It was tough getting to this point, but my Dad was right. I sure do miss him.
I totally agree with you. I didn't use to be that way. I would max my credit to get what I wanted today instead of waiting to get the money for it. After feeling like a slave to creditors, I finally saw the light and I don't do that any longer. Except for my mortgage, I don't have any bills either. I paid cash for my 2012 and I love not having any payments. It takes discipline, but it is well worth it. It is amazing how much less stress is in my life when I don't have to worry about working to pay a creditor.
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Old 10-11-2011, 09:56 AM   #30
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I always set my loans to be paid out of each check rather then 1 time a month. I also round the amount up to the nearest nice ammount. That way i end up paying a few dollars more each month and cut 1/2-1 year off the loan. You dont notice the extra money as its just a couple dollars each week or so but adds up very fast.

If you still have extra money invest it. Once you get to a point you can pay off the loan wait and save a little bit more. So when you do pay off the loan you have a little bit of money left to keep your investment going.

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