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XK or WK2?

  • Keep XK and pay it off

    Votes: 11 91.7%
  • Trade/sell, buy WK2

    Votes: 1 8.3%

  • Total voters
    12
  • Poll closed .
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Discussion Starter #1
I'm thinking about trading my Xk in on a new 2011 Grand Cherokee. My local dealer has two 2011s on their lot at a good discount, with full leather, towing and other toys. I estimate that I'll be in my current budget for payment, with about $10. Here's my dilemma: My XK has 90k miles on it, and I have another 25 months to go before its paid off. There's nothing physically wrong with the XK, but I'd like to get into something newer and more comfortable, as well as a little easier for the wife to drive if needed. Maybe I just have car fever, so give me your thoughts!

XK:
-owned since new
-90k miles now
-no issues currently, have had some previously, but they were lift related
-25 months to payoff, owe ~$14600, worth ~$10k on trade.

WK2:
-New 2011
-72 month note would have payments within $10 of current payment
-already $7k off, should be able to fight for more
-Fully loaded (Laredo, 25X package, Hemi, Off Road, Towing VI pkgs)
 

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In my completely unbiased, been there/done that, opinion.... out of those two options, keep the XK!

OR add a 3rd option: Trade in on another vehicle, slightly used, that you'll have the same payment paid off in 3 years or less.

Considering that you owe more than trade in value, so that's getting tacked onto the loan, and you'll need 72 months to make it "affordable" (in quotes because thats a relative term), that's just not something you want to do with a baby on the way.

NOT because i'm questioning whether you can afford it or not. It's because, i've been there, and while I could have kept my 2008 Sierra Denali (that i got for 15k off MSRP out the door) i realized how much cool stuff i could be buying for my children instead of paying that monthly note. (or saving for them)

In addition, with the scenario you mentioned, you'll basically be "locked in" to that vehicle for a long time (unless you left out the part where you're putting $10k down).... so if you realize you've made a mistake, or something unfortunate happens with either your wife or the child that results in a a hardship, you'll be in a really bad position.

.... I'm trying to keep this short....

Ok rather than go on and on, let me sum it up with this: Take whatever option leaves you in less debt until you get settled in after a few months with the baby. Make sure everythings cool and your budget is what you expected, and make the vehicle change ~5-6 months after birth (if you still want to).
 

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Don't dig yourself into a hole like my mom did. She had a Pacifica with $20,000 still owed on it I believe. Her ex-bf talked her into buying a fully loaded Aspen (45k + the 20k she owed) put her at almost $1000 car payment. Topped with the price of gas and the horrid gas mileage, she spends more on her car than she does the house. The fact that her trip to and from work is about 90 miles daily doesn't help either.

If you really want a new car, you'd better be able to afford it, especially one like this.
 

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72 months is a long time for a car loan. Especially considering that there are many new car deals avaialble with 0% financing these days. Just my $.02...
 

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Man-O-Man,

Thats kindof a tough one.
I really don't like the finance deal you have on your Commander.
Gotta ask.....how long did you finance it for......this 06 purchassed new and 25 payments left.....see my confusion?
The interest rate you currently have comes into play on this question as well.

My very first thought is.....is there any way you can get this paid off sooner.....like double payments or something along those lines?

Rolling $4600.00 into a new loan....thats a lot of money going to waste.

I know new car 'itis' well......got ten cars to prove it, but no loans.

So, conservitism is kicking in on your behaf........my advice, keep your well maintained Commander for now and try to double/triple pay to offset the current interest rate.

Jeep will keep making Grand Cherokee's for when it's your turn to buy.

Hope I didn't burst any bubbles......besides, I want you to stay on this forum.

Rob
 

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Discussion Starter #6
Robby, I had it financed for 72 months, but I've had to bump a couple of payments due to some financial & work related issues, so that's pushed it out. Plus I rolled several other bad deals into the XK, hence the longer term.

That's why I said I've got new car fever more than anything. I'm really not keen on restarting a clock that's already ticking down to the end. And you're right, they'll keep making WKs long after mine's paid off.

I'll keep the poll open, but I'm leaning toward keeping the XK and getting rid of the note on it.
 

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I will vote for keep the XK but it is really a vote for NO CAR LOANS. Car loans are terrible and rolling a current loan in to a new loan is even worse. I owe 9 payments on my smart and then will NEVER have another car loan.
 

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Oh man, this is almost worse than just new-car itis, it's male nesting! I've gone through this several times (still going kind of with a baby due in March), where I get over excited about upgrading everything I know how to, which is always good-intentioned efforts in the wrong directions (bigger car, bigger house, bigger other car, bigger wheels for the first car, etc). Have to join the bandwagon and say hold steady with what you've got right now, there's enough adjustments on the way and the last thing you'll want to be bound to is more monthly payments.
 

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I also say keep the XK, and for the same reasons as a49erFan mentioned.

It's just a bad idea to roll a remaining loan into a new vehicle. ALL vehicles, unless it's a Rolls Royce Silver Cloud kept in a museum, is an determent to your finances rather than an investment. Vehicles depreciate in value fast, (especially if they're new) and a loan on one you didn't roll another loan into becomes a "gap" in value. (You owe more than it's worth) Add in your remaining loan on top of THAT loan, and the gap becomes all the wider. Then... you need "Gap insurance" to fill in the gaping insurance payoff hole should you wreck the thing, and that adds more costs.

That being said, if you do buy a new vehicle, bypass the dealer's high interest rates and get set up ahead with a good credit union. Dealer's get a cut on most car loans, (It's a bank or C.U. THEY like to deal with) so there's just about ALWAYS extra percentage padded into the deal that's good for THEM and not you. Walk into the place with the backing of a C.U. loan's $$$, and you can then deal as if you have CASH for the rig you want. That will get rid of the "I have to go check with the manager" crap (i.e. they smoke a cigarette while you sweat and wait) as they drop your initial deal from something like 14% interest and high payments.

I'd say if the XK is starting to fall apart, it's time to dump it with a credit union pre-setup, and only then. Otherwise, keep it and get rid of the current loan. The XK will be worth less for a trade-in two years from now, but the difference will probably be less then rolling its loan in would cost you right now.
 

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I got new car itis (even though I plan on keeping my XK forever) and picked up a Suzuki GS500 motorcycle for $1000. Now I get 50mpg+ for my commute.

But, short advice - keep the XK until you pay it off and see how you like not having payments. Then if you like payments more, trade it in.
 
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