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$50k+ is a lot of money for a new vehicle...

17K views 137 replies 48 participants last post by  bill_de 
#1 ·
I am trying to justify spending that kind of money on a new Overland. I am currently driving a 2002 Honda Accord. It gets me where I need to go, but has a small oil leak that just annoys the hell out of me. I could probably drive the car a few more years if I had to and might anyway. Also, I have a toddler and would love to upgrade to keep him a little safer, not to mention taking it out on camping and fishing trips.
Without getting to detailed into my finances, my wife and I make about 4-5 times as much a year as an Overland costs, but even with that it is hard for me to think of making a $1000 car payment over the next 3 years. I know I would love the new jeep, I went out and test drove one a couple of months ago. My brain just keeps getting in my way of going out and ordering one.
So, how do you guys justify spending so much money on a jeep? I am serious, as I am looking for a couple of good reasons to convince myself to get one. Every time I have just about convinced myself, I think about how having $50k less on my mortgage or $50k invested would probably be the better option.







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#2 ·
First off, order a Limited with Lux II, Tow IV, 8.4 w/Nav and 20" wheels and you will almost have an Overland. That's what we did. And if you negotiate it will be around $40-41K and not $50K. Second, pay cash. Then you don't have to kick yourself over paying interest.

If you'd rather put the money on your house or into investments and reap decades of leveraged return, I can't fault you. That's how we got to where we could pay cash for a Jeep.

Either way, good luck.
 
#3 ·
4-5 times the value of the Overland or of the monthly payment. Big diff. I'll assume the former, not the later.

It really comes down to what you want to spend your money on.

I am assuming you're both pretty bright to make that money AND to question such a large expense (that's what a vehicle is...an expense).

Say you keep your GC for 12 years like your Honda. That's what....$350/month assuming the GC would have ZERO value at then end of 12 years which would not be the case. You also have higher insurance, fuel costs, etc.

There's a lot of factors that go into buying a new vehicle especially when it is $50K which obviously such a price is NOT a necessity.

It does depend on how prudent you are with your other spending. If you're saving 20% of your pre-tax earnings, then you're probably good to go on spending on one thing that doesn't make financial sense.

I will say, vehicle safety has improved a lot over the last 12 years...since your 2002 Honda.

The bottom line is, it is not a prudent financial move if that is your only analysis. It just depends on what you want and how much enjoyment you'll get out of it.

Sounds like someone wants a new GC, but needs someone to give them the OK.

Here it is....OK.
 
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#4 ·
If you're not going to tow anything and you want a new car, there are less costly alternatives.

A subaru outback would probably fit most peoples needs. We have a 2010, but with 2kids and a trailer, we wanted something bigger. I've admired the 2011+ grand Cherokees for a while, but was surprised to find that the weren't any bigger... So we got the durango.

If you don't mind a slightly used car, pick up a 2011 JGC. It'll be a serious step up from your current ride, and the original owner eats the initial depreciation! That's really the smart thing to do... But I look after my stuff and keep it forever. Just got rid of a 2002 Mazda protege and bought the D.

Safety is a valid concern, especially side impact standards, which were seriously revised for 2012. Some cars were built with the new standards in mind (so they wouldn't need to be revised), but our 2002's certainly weren't. With all the jacked up trucks around here, I really wasn't keen on driving the old Mazda with the kids in the back.
 
#6 · (Edited)
I would NEVER pay $50,000 for a Jeep...

With that said, I only paid $43,900 for my straight Overland (no extras), and I'm sure others got an even better deal.

I don't know where you're getting this "$50,000" figure for an Overland, and I can't see how someone who makes as much as you say you do wouldn't be able to afford a vehicle at that price.

:confused:

My wife and I make similar money, I have a kid and a mortage too...but we have no problem with my wife owning a 2014 BMW 328iX Sport...and me owning a 2014 Overland.
 
#8 ·
I never said that I couldn't afford the Jeep. I could just about pay cash for it. It would only be about 1/11 of our take home pay. I said that I was having a hard time justifying spending that much money, not just on a jeep but on any car. The problem is, I really want the jeep. :) $50,000 is just a huge amount of money for me to wrap spending on a vehicle that will depreciate in value so quickly. On the upside, I will probably drive it for the next 10 years or so. One of these days I will have a week moment and buy it, just not sure if I will do it soon and get a 2015 or hold out and wait for the next gen model.

And I was getting the $50k figure by adding options:

Invoice:
Overland - 43940 + 995
Diesel - $4005
ATG - $1776
OR II - $975
DVD - $1776
= $53,467 * .945 (group buy) = $50,526
 
#7 · (Edited)
The dollar figure is "relative"...lots of vehicles these days get into that same price range, especially for upper trim levels. Pickup trucks, SUVs, sedans, etc. Doesn't matter. Nature of the beast...

Choose the JGC trim level that best meets your needs. But consider that the "high" for one trim level may not be as good of a deal...long term...as the "low" of the next trim level up. Or vice versa in some cases. So be sure to compare all the options that are close to what you want to have in the vehicle.

BTW, I'm not sure how you would end up with a $1000 car payment...unless it's zero down and a short term loan. Be sure you're getting all the available incentives, too.
 
#57 ·
My household always owns my commuter car and leases the family car now. I want one car in the family that is ALWAYS under warranty, and I don't mind "throwing away" that money every month as it's a predictable amount that I can account for every month, no unexpected expenses (repairs). At the end of the lease, I can either buy it and flip it depending on what the final value ends up being, or I can turn in the keys and walk away.

I don't put any money down (made that mistake before), so I don't really assume any risk. Basically, I'm renting a car. I'm fine with that. And the nice added bonus is that there's always a great deal out there somewhere, and I can drive a better, safer car than I could afford otherwise.

To me, there are really no negatives. If it depreciates, I lease it. I've been lucky with my 2002 (which I bought). According to current offers on cars.com, three years later I can still sell it for what I paid for it. But for me, no way I'm buying a $40K car anymore. But the high residuals make it very easy to lease Jeeps.
 
#15 ·
I personally justify my SRT just from the pleasure I derive from having it. I'm a car freak and it's just my main "hobby", I'm always in the garage doing something whether it be detailing or installing new parts. The wife thinks it's insane, while she likes the car, she thinks 70k was a bit much. I sold it that it's safe and will be useful, LOL. I think it all comes down to how important a car is to you. I don't drive much at all since I travel for work during the week, but I've always had nice cars and it's an addiction at this point. Do I need it? Heck no I don't, and I'm sure the money would be smarter to use elsewhere, but we already have the home we want, don't go on fancy vacations and can afford it while still saving my wife's whole salary. Some people spend money on vacations or other hobbies, I just justify mine by the enjoyment I get out of having it. I realize it's a complete waste of money LOL. Just some people are car people and others aren't. You'll see fancy cars parked at an apartment complex while you see 2002 accords parked in the driveway of mansions, just matters what your priorities and interests are.
 
#16 · (Edited)
I am trying to justify spending that kind of money on a new Overland. I am currently driving a 2002 Honda Accord...

So, how do you guys justify spending so much money on a jeep? I am serious, as I am looking for a couple of good reasons to convince myself to get one. Every time I have just about convinced myself, I think about how having $50k less on my mortgage or $50k invested would probably be the better option.
So this is one of those adult choices we all have to make. I justify spending a lot on my Grand Cherokee Overland (with hemi so that includes a ton on gas) because all of the comparable vehicles with the features I want cost considerably more. More specifically, show me a vehicle with actual ability off road, adjustable air suspension, with the equivalent speed/power of the hemi, the pano sunroof and other luxury features (including ATG) for significantly less money? How about the same money? How about not much more money? Long story short, if you want this kind of car with these capabilities and features it is going to be expensive. Personally, it is a no-brainer for me and my lifestyle. I have a huge dog that often rides in the back seat. I live in a location where there is heavy snow and flooding rains and I have a very long drive to work. I put on 2000+ miles every month. In addition, I like skiing and hiking. So I definitely feel like I get my money's worth and I enjoy driving it every day, whether I am going 90+ mph on the road or whether I'm on some crap trail getting to my hiking destination or deep snow.

Yes, it is an expensive car. Whether it is worth it depends on your perspective. If you decide that you would rather not spend a lot on a car then you can save a ton getting another Accord. But you simply cannot get another comparable SUV for less money.
 
#18 ·
Buy it, drive it, love it! I have no regrets with my purchase. You only live once. If you can afford it, and you want it, why not. Lots of people who can't afford things still buy them. We're all kids in a candy store. :D
 
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#19 ·
In case you didn't know, the chassis was developed when they were owned by Mercedes.

It's a lot of money, but it comparison it is a good value. Cross-shop this one:
M-Class SUV: Luxury All-Wheel Drive and Diesel SUVs | Mercedes-Benz

One of the selling points of a diesel is longevity, but the new diesel in the Jeep hasn't been proven yet. If you really want a diesel, I'd consider a used BlueTEC.
 
#25 ·
... but the new diesel in the Jeep hasn't been proven yet. .
That is not really an accurate statement. While the engine is new to the North American JGC market, it's not at all new to Jeep GC globally nor to many other vehicles.
 
#20 ·
Derek do you work for MB? The jeep diesel is a mature design and implementation with tens of thousands (maybe even hundreds of thousands) and literally years in the field - oh and you'll note the MB telematics lags the jeep also - but you can pay thousands more to have that star on your grill. :)



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#21 ·
No, I definitely don't work for MB.

If he really wants a diesel, he'd have to buy a new Jeep (or an older WK). The ML is a good option for a used vehicle... and new one is a good comparison to illustrate the good value of the Jeep.
 
#22 ·
I have to agree with OP; 50K is way too rich for me. I went the used route, got a base laredo for just over half the original sticker price. Was 1.5 years old, non rental, spent 6 months (off and on) looking and keeping an eye on the market before snapping it up the day I saw it for sale.

You don't have to "go new" to get a very nice GC :thumbsup:
 
#26 ·
There are always issues with new production (the DEF injector wiring is a good example here).

Personally, I just wouldn't spend that kind of money to be a guinea pig.
 
#30 ·
I am trying to justify spending that kind of money on a new Overland. I am currently driving a 2002 Honda Accord. It gets me where I need to go, but has a small oil leak that just annoys the hell out of me. I could probably drive the car a few more years if I had to and might anyway. Also, I have a toddler and would love to upgrade to keep him a little safer, not to mention taking it out on camping and fishing trips.
Without getting to detailed into my finances, my wife and I make about 4-5 times as much a year as an Overland costs, but even with that it is hard for me to think of making a $1000 car payment over the next 3 years. I know I would love the new jeep, I went out and test drove one a couple of months ago. My brain just keeps getting in my way of going out and ordering one.
So, how do you guys justify spending so much money on a jeep? I am serious, as I am looking for a couple of good reasons to convince myself to get one. Every time I have just about convinced myself, I think about how having $50k less on my mortgage or $50k invested would probably be the better option.



Sent from my iPhone using JeepGarage
every once in awhile in life you need to buy something just because you want it not because it makes sense or you got a good deal or whatever. So live responsibly but just buy something because you want it sometimes.
 
#31 ·
Perhaps lowering your sights just a bit. You can get a pretty nice V-6 Laredo for just over $30k.

Much lower depreciation, and still the same basic Jeep, just without all the options (that you might want, but not really need)

You still get most of what you want, but no payment anxiety (might even pay cash). Invest the left over $20,000 or pay down your house a bit.

Your taxes, registration, fuel, etc will all be less too.
 
#35 · (Edited)
I think my (and mswlogo's) confusion came from this wording:
I could just about pay cash for it. It would only be about 1/11 of our take home pay.
You have two "it"s back to back that refer to two different things. One the cash price of the vehicle and the other the monthly payment of the vehicle.

Anyway, $50k is a lot for a car. I'm not enthused about the new monthly payment, and my wife is even less so, but we'll be fine as we're going to keep the car a long time.

As far as justifying it, we do a decent amount of offroading/dry camping as well as long road trips and I wanted something that is very comfortable as well as very capable, both in off-road ability and towing/cargo capacity. As others have alluded, try finding another vehicle that combines those attributes like the Grand Cherokee that costs less. In the end it's still an unnecessary luxury to have a car this nice, but my wife and I will get many years of enjoyment out of it. (knock on open-pore wood ;))
 
#37 ·
If you read the original post, it is not about a Jeep, nor is it about financing. It is about the posters hang up about spending money.

I always figured it is easy to die rich, just save all you earn. But, life can be a lot more fun if you plan to spend your last dollar on the day you die.

Somewhere in between is the compromise we chose. It's a decision every individual (or family) needs to make for themselves. I don't think a consensus on the internet is the best tool, but I'm old school. ;)



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#38 ·
If you read the original post, it is not about a Jeep, nor is it about financing. It is about the posters hang up about spending money.

I always figured it is easy to die rich, just save all you earn. But, life can be a lot more fun if you plan to spend your last dollar on the day you die.

Somewhere in between is the compromise we chose. It's a decision every individual (or family) needs to make for themselves. I don't think a consensus on the internet is the best tool, but I'm old school. ;)



---
Exactly !!

Too much of anything isn't good. Spend a little, Save a little, Work a little, live a little.
 
#41 ·
Some justifications are:
1. Fun to drive
2. Safe
3. Towing
4. Can take it where most factory SUVs can't go
5. Feels good to be higher up than in an accord
6. You work hard, you deserve it

Reasons not to buy:
1. Not as fuel efficient as other vehicles
2. Lotsa tech and mechanical to potentially have issues with down the road (pun intended?)
3. You want to do major off roading
4. As an investment

The main reason I got mine is because it's fun and I enjoy driving it. I like that it's American. I like that it's fairly capable off road. I like the looks inside and out. Mines a basic unlimited but am very happy with the joy the vehicle provides. If you plan to drive it more than 5 years, I don't see how the purchase could be a bad thing.
 
#42 ·
Actually all the guy needs to do is shop smarter: ditch the $4000 Diesel and the $1776 DVD options. I have no clue if the DVD option is really that much but you can buy a few I-PADs, SURFACEes and other tablets for that money. And if he has been driving a 2002 Honda Accord for that long, he really doesn't need towing prowess, hence the diesel. I understand the ORA-II and the Advanced Tech Group - I have those options as well, but they are not critical. And if he wore to get those two packages in a Limited along with the Luxury package, he would save an additional $2000 vs the Overland.

Damn dude, I just saved you some $7700 dollars ! and got you all the essentials that you need, the creature comforts you'll enjoy and all the features you will not use to make your money's worth.

If you want matching reliability of your Honda, do yourself a favor and buy a Highlander. Much less of a truck, much more of a crossover, but better (predicted) reliability.
 
#43 ·
I'm sure it was said, but didn't feel like reading all the off topic comments.

Buy a low mileage 2012-2013, JGC Overland (like I did). You get a $50K (Window sticker for mine was $47K) vehicle for a lot less. Yeah you don't get the new car smell (however a good detail brings it back) and someone probably farted in it a few times.
 
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