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Car Purchase? To buy? Or Not to Buy? Financial Advice!!

Discussion in 'BlackHat Lounge' started by eye4details, Dec 14, 2011.

  1. eye4details

    eye4details Registered Member

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    Hey People, I've never posted stuff like this on the forum, but thought I'd get some input beyond my fam (who thinks it's negative decision anyway).

    I've been looking for a specific type of Jeep for around 4 months, I lived, breathed, ate, Jeeps for like 4 months.

    And tomorrow is the day I should be picking it up..

    Here is the situation:

    I know you guys aren't financial advisers..but..I don't know if I'm too high over my head for doing this.

    Me and the seller has not discussed the pricing yet, I know he mentioned something about the KBB.

    I'm looking at from anywhere 13K-15K by the end w/ TTL.

    I had plans to cash pay this vehicle with my own savings. My family said that I could take the cash to a bank, put it in a CD, and borrow the same amount against the CD and the interest would be only a few percent higher than the CD rates.

    Things have totally changed since my fam did banking - despite locking up my own money, the bank is still looking at anywhere from 9%-18%.

    So that is out, as I refuse to pay that much interest esp. if I'm securing it w/ my own money.

    So, if I buy this Jeep, I'm looking at taking out a large sum from my savings and possibly never seeing it again.

    A couple years ago - I know I could have replaced it. My job was great (I still do the samething but pay is radically different now).

    The economy is bad, I'm not making anywhere near what I use to. I am now going back to school and still working part time.

    Some months I pull from savings to cover bills or tuition.

    I don't at this point see a time where I can be paying myself back into savings for this loan.

    I'll just put the bottom line out there:

    If you have $89K in savings...current job isn't good, going back to school, etc, is buying this Jeep foolish?

    I know you're saying, why think of all this now, lol - if they guy would have sold it to me when I wanted last week, lol - I wouldn't had this entire week to think about all the seriousness, lol.

    Last night I was reading on the economy and jobs, and it's scary! And I'm thinking twice now.

    It's like the shzz my family has been trying to say for past 4 months finally sunk in.

    The Jeep would be a 2nd vehicle (I drive an older truck). This is more a "want" than a requirement.

    I have no debt - no credit cards, no car loans, no mortgage.

    Thoughts?
     
  2. iiaok

    iiaok Regular Member

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    You're much better off paying cash for it than getting a loan. Sounds to me like you have done your research.

    As far as the wisdom behind the purchase, are you in need of the transportation? You have to view it as a business decision. Take the emotion out of it. If he wants KBB value, tell him to suck it and move on to another seller that you can beat up a bit on price.

    If all it is, however, is a "gee, I'd like a Jeep" purchase, you may want to get that money working for you instead of sitting in a savings account. $89k is a hell of a start for a lot of ventures. Pass on the Jeep until you have reestablished cash flow.
     
  3. sapo

    sapo Power Member

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    I say save your money. trust me.

    what kind of jeep do you want, I love jeeps buy a cheap 5grand cherokee every year just to destroy off roading in the summer.

    if I was you, I wouldent buy this out my personal money, Invest your money and with the residual return save that up and buy whatever you want.

    I try my hardest never to purchase things out the norm with my living money.
     
  4. eye4details

    eye4details Registered Member

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    Nah, it's not a requirement, current vehicle is alright.

    Yeah, we're on a making money forum, I'm always thinking of ways to make it.

    I actually found a 1 owner, TJ. 2002 Sahara, black, stock but beautiful, it took 4 months to find it. 55K miles. It matched all my criteria.

    I had no plans to offroad it, my current truck is alright for local, but wanted a more dependable ride.

    But yeah, I'm getting down to crunch time and it's more serious now.
     
    Last edited: Dec 14, 2011
  5. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    You do realize that you can't withdraw your money without repaying the loan right? You would be paying a 9% interest for the fantasy that you have money on the bank :eek:

    Do the hummingbirds fly? Does the sun shine? Is the Earth round?

    Who would have guessed? :D
    Only few people actually need a Jeep.

    So, you plan to have no savings as well? Nice :)

    Here 's my advice...
    Spend a few grand to fuck some very beautiful women and you will not need a Jeep any more.

    You are going to spend all that money on something that deprecates its value rapidly only for your ego. You seem wise enough not to do such a foolish thing.
     
  6. eye4details

    eye4details Registered Member

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    Ah, well if I only had a d*ck, lol.

    And I had no idea a 2002 Wrangler was a status symbol.

    Jeeps actually do retain their value really well.

    But I'll take your last comment seriously @ foolish thing to do.
     
  7. hispdcha

    hispdcha Regular Member

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    Money comes and goes, happiness doesn't. If it's going to make you happy to have this jeep and you can afford it, then why not? Everyone will tell you how to live your life, but doing so won't make you happy. Be happy, enjoy yourself, and if at a later date you're out of cash, you can sell it (for a loss obviously but not a total loss) and move on. For now though? Enjoy the happiness this jeep will bring to your life. :)
     
    Last edited: Dec 14, 2011
  8. Union

    Union Power Member

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    Go for CASH !!!,
    But if you decide to go thru Bank, it will be better to LEASE a new one...talk to your accounter and see why...
     
  9. imlol

    imlol Regular Member

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    Only you really know if you can afford the car. I dont know what your monthly expenses are or your current income.

    Well, you could but a website for 12k that makes 1k/mo and lease a brand new one (350ish?) for 2 years, not sure if they do a 1 year lease. You could look on leasetrader to pick one up with 10 months left. As long as the site doesnt die you still have your 12k in the site and you got to use the car you want for free.
     
  10. titties420

    titties420 Registered Member

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    Give Suze Orman a call let her decide
     
  11. eye4details

    eye4details Registered Member

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    I just wanted to update.

    Thanks for replies.

    I opted out.

    I'll start a fund specifically for the Jeep and hopefully when the used ones start hitting the market again next winter I can land one and feel better about it.

    Thanks =)
     
  12. SilverSultan

    SilverSultan Regular Member

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    Where you think ? xD
    if this is a "want" not a requirement why do you need it? impressing girls? I would advise against this move, lol look at me, I sound like that Susie Orman lady XD
    seriously my mom still drives a 96 toyota, I say if you don't need it don't buy it. better Jeeps will come along, but if you must, why not sell your old truck, and cover of the expenses for the Jeep?
     
  13. eye4details

    eye4details Registered Member

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    Well the truck was a gift, it was my first vehicle given to me by fam, so it's kinda of sentimental.

    I could prob only get 8K-10K for my truck anyway.

    I had thought about that, but my fam would have been really hurt about me selling it and it's a nice truck.

    Story short, it's so lifted/big tires, it's a pretty much just a local ride now.

    Plus, I've had it for around 3 years or so now, I wanted a 2nd vehicle.

    I just wanted the option of a change and it's def not to impress girls, lol - I'm a chick.

    Plus I've got in involved in a Jeep Wrangler community and I like the Jeep culture.

    But alas, it's on hold now, I decided not to do it.