Thoughts on not buying right now?

[AZMikeL]

I think Ramsey has it wrong to a degree - debt, if used wisely can be a good thing. Case in point - we moved to the current house in late 2020 right before the big upswing in house prices. Got a 30 year fixed rate of 2 7/8%. Financially, we're coming out way ahead on a house that has appreciated over 50% in 4 years. Even if we return to more normal 3% appreciation, we're still ahead. Our next house will be downsizing, so hoping to pay all cash for that one.

I'm an AZ native and got my 1st ever scorpion bite in my closet about 2 years ago. Hurt like hell when it first happened, but all the pain and other symptoms were gone after 15 minutes. Must have been a mature one and only injected a little poison into my toe. It's always the young poisonous critters here that do the most damage. A juvenile Diamondback completely ruined my weekend a few years back resulting in 2 nights in the ICU and 10 vials on Ant-venom. About 2 weeks later, the same snake was in the chicken coop still not rattling and waiting to strike, so I kindly relieved him of his head!

Sponsored

 

[Soupflakes]

WOW! Quite the response. To answer a few questions, the Badlands we're looking at is at $68k Sticker, but have a price locked in at $54995 on it. However, it's an auto, and I miss having a manual. They're definitely hurting, we got a quote on order a new heritage at 49,752 (2025), 2k under invoice. I just feel like an automatic bronco is like the pumpkin spice latte girls barbie jeep kinda vehicle. If I get a bronco I want to DRIVE it, not ride along sipping my mocha with the top off blaring britney spears. XD (Who's kidding who, I'm still gonna blast britney, just want to shift while I'm doing it, lolol)

The fact is these broncos (and ALL cars for that matter) are tanking. People way over paid due to panic buying during the covid crap, and now things are normalizing and it's gonna be interesting. No reason a badlands bronco was going for Raptor prices 2 years ago, that was just nuts.

 

[MNBigfoot]

WOW! Quite the response. To answer a few questions, the Badlands we're looking at is at $68k Sticker, but have a price locked in at $54995 on it. However, it's an auto, and I miss having a manual. They're definitely hurting, we got a quote on order a new heritage at 49,752 (2025), 2k under invoice. I just feel like an automatic bronco is like the pumpkin spice latte girls barbie jeep kinda vehicle. If I get a bronco I want to DRIVE it, not ride along sipping my mocha with the top off blaring britney spears. XD (Who's kidding who, I'm still gonna blast britney, just want to shift while I'm doing it, lolol)

The fact is these broncos (and ALL cars for that matter) are tanking. People way over paid due to panic buying during the covid crap, and now things are normalizing and it's gonna be interesting. No reason a badlands bronco was going for Raptor prices 2 years ago, that was just nuts.

LOL, you are looking at the LUX package, does it get any more Britney Spears hitting the Starbucks than that?

 

[GoHawks63]

I think Ramsey has it wrong to a degree - debt, if used wisely can be a good thing. Case in point - we moved to the current house in late 2020 right before the big upswing in house prices. Got a 30 year fixed rate of 2 7/8%. Financially, we're coming out way ahead on a house that has appreciated over 50% in 4 years. Even if we return to more normal 3% appreciation, we're still ahead. Our next house will be downsizing, so hoping to pay all cash for that one.

Agree, back in 2020 I refinanced my 30 year mortgage to a 15 year at 2.5% and while not a surprise, it is amazing how quickly the principle keeps shrinking every month with most of that payment paying down the debt. Should have the house paid off in the next few years while it continues to appreciate.

When purchasing my Bronco I had a money market fund that I had for years where $100 was being pulled out of my checking account. It was an account that I really wasn't factoring into my overall retirement projections (I am semi-retired now). I viewed it as my new car fund.

When I decided to pull the trigger on the Bronco, I cashed out that MM fund, and then I called my financial advisor to debate whether I should just withdraw the remaining amount and pay cash for the vehicle.

His advice was that analysts were still projecting an 8%+ growth in the market this year and if I could get an interest rate below that, it made sense to withdraw all the funds out of my investments.

So I only made a small withdrawal out of the investments, combined with what came out of the MM and the trade-in on my 2012 BMW X5, I put almost 65% down on the Bronco and got a 5.5% rate on the remaining amount on the Bronco.

Still higher than I wanted, but I'm comparing it to the 1.9% I was paying when I bought my CTS-V many years ago!

Nonethless, I am paying a little extra every month on the Bronco note. If auto loan rates drop further I'll refinance it and if the market starts to turn downward I'll consider selling some investments and paying the Bronco off.

I would consider paying the rest of the house off now but with a 2.5% interest rate that doesn't make any sense. Only drawback is that my mortgage interest rate deduction doesn't help much at tax time.

 

[UncleBrad]

There is never a good time or a bad time... You may not live past tomorrow- If not now, when?

Yes - especially if you see something that is exactly what you really, really want. In my case, a 2-dr manual. Life is short. Maybe you can bring your thugs into the showroom and shake the sales team down?

 

[Roger123]

Dave Ramsey, is that you?

No, it's your Grandmother, common sense for your dollars and cents.

 

[Roger123]

I bought my 22 Bronco in March 23 for MSRP ($36K Bronco Base). One year later Carvana offered me $46K. Its not worth that much today but you would be hard pressed to buy any new Bronco for $36K or any similar vehicle. I have no regrets, it was the right time for me. Dave Ramsey is not always right. He recommends never buying a new vehicle.

Not true, if you have a million $ net worth and pay cash, go for it.

 

[Roger123]

Dave Ramsey is a boomer carmudgeon who doesn't have any understanding of the modern economy, still preaching what worked well in the 1970s and 1980s...

If I had lived my 44 years according to Dave, my life would have been a shit ton less enjoyable than it has been up to this point.

I.e., living within your means... add 90's, 2000's, 2010's, 2020's, etc.

 

[Roger123]

Fair enough. MSRP $67140, Purchase price $58000 which equates to 13.3%. This did not include TTL. Salesman said they lost "$2k-3k" on the deal. Didn't move the needle with me.

We lose money on every sale but we make it up in volume.

 

[AZ_Craig]

Not true, if you have a million $ net worth and pay cash, go for it.

Ahem...

Nope.

https://www.ramseysolutions.com/ins...PHxz4xonaputqoEm7f_WnH9ykNUlDzRElCA5PsFIWcnCj

The depreciation alone he cites as a reason you should never buy new, even if you are a millionaire.

Better invest in some multi-level-marketing instead...

 

[Roger123]

Ahem...

Nope.

https://www.ramseysolutions.com/ins...PHxz4xonaputqoEm7f_WnH9ykNUlDzRElCA5PsFIWcnCj

The depreciation alone he cites as a reason you should never buy new, even if you are a millionaire.

Better invest in some multi-level-marketing instead...

If you listen to the show he will tell you, one million net worth, buy a new car if you want.

He buys new cars.

 

[C6ZZGT]

But you could get hit by a bus tomorrow and never have that enjoyment. When I retired, I bought a new Bronco, wrote a check and never looked back. I cant take my money with me, and I'm damn sure gonna enjoy it. Since retired two years ago, I've visited 11 countries along with the continent of Antarctica. I don't wait for price drops on anything, I just go.

Since we lost our 15yr old six months ago, I have been a lot looser with the wallet. More travel, more concerts, dinners out, And our second Bronco.

 

[AZ_Craig]

If you listen to the show he will tell you, one million net worth, buy a new car if you want.

He buys new cars.

It will be a cold day in hell when I listen to Ramsey. He's only what he is because of advertising revenue derived from the sheeple who listen to him.

I don't care that he buys new cars. My point was his website explicitly calls out that nobody should ever buy a new car. Just more evidence of him being a hypocrit .

 

[Gregus73]

To me, I work in tech and from what I can tell gov jobs and tech are a sh.. show now. Holding off any big new purchases at the moment.

That being said, I have seen some great deals out there now. I recently noticed a new 2024 Braptor going for over 20k the price since the vehicle was not moving. My mom recently picked up a new AMG SL for 35k off the price.

 

[timhood]

Just my opinion but see what news you all have. With Stellantis rumoring massive MSRP cuts and 10's of thousands of new 2024 broncos still sitting on lots, I'm feeling I should just wait a few months to buy.

That isn't necessarily abnormal. A 60-day supply is about what manufacturers target. If Broncos sell at 9,000/month, there should be 27,000 on lots right now.

They are NOT moving high cost vehicles right now, and it's only getting worse. I think we're seeing the collapse of the car market that was sure to happen after then insane high in the market a couple years ago.

I'm not sure who "they" is, but there are high-cost vehicles selling. But the reality is that the rise in interest rates has had a significant effect on car sales in general (as is to be expected, because that is the whole point of raising interest rates--to slow the economy and curb inflation.) I think collapse is an overstatement and the slowing of sales has already reached equilibrium.

I'm already seeing high level badlands for 10 to 15k off (Have a quote IN HAND for a lux badlands hardtop sasquatch for $54,995 Right now). If Stellantis DOES slash MSRP's that much, everyone else is going to have to follow (Only diehard bronco lovers are going to buy a Bronco when a similar Jeep is $20,000 less.) Thoughts?

The question is whether you think you'll be able to get a better deal than that and how close to your ideal configuration that vehicle is. I can't imagine that vehicle selling new for much less than that, if at all, but some factors depend on the dealer.

First, make sure you feel comfortable affording it. If it isn't close to your ideal configuration, maybe keep looking for one that is. But if it's exactly what you want and you're ready to buy, it comes down to how much you'll be bothered if you find out you could have gotten it a little cheaper if you had waited. It probably helps to know when the slow months and when the peak months are for Broncos and Jeeps in your area. The closer you get to peak selling, the less the incentive will be.

Sponsored