Let’s talk numbers…
Y’all know we are a budgeting, FIRE Movement, Debt Free account at our core, so let’s talk about the numbers on our new-to-us Jeep Grand Cherokee Limited.
1. We bought it used. Final cost $14,500. It’s a 2014 one-owner that was traded in, sent to auction, & a small town dealer got it before we bought it from them.
2. We paid cash. Left with title in hand.
3. 3 weeks ago we sold our 2010 Ford F-350 King Ranch for $26,000. Our truck had been paid for since 2019. For reference, in 2018 we paid $32,000 for it and spent close to $5,000 in maintenance during the 4 years we owned it. Top end book value on our truck is $24,000. You lose this on trade-ins. Never trade-in in my opinion.
4. Our original budget was $10,000. $11,000 at most. The goal was to have an extra $15,000 cash saved for our historic home renovation.
5. Finding a decent SUV, AWD/4WD with fair miles that fits all 6 of us proved difficult at our original budget. So we upped our budget to $15,000 from $10k. Leaving us $11,000 towards our renovation.
6. We got our Jeep for $14,500. Now, we need brakes for it and a good tune up, so that will alter the $11,500 remaining from the $26k sale of our truck and purchase of the Jeep, but we should still be north of $10k cash saved.
This is how we manage money decisions. This is how we buy liabilities like cars. We don’t buy new, we don’t trade in, and we don’t settle. Fortunately & unfortunately for us, the used car market is CRAZY. We sold HIGH and paid more than we like in this case, however, we leveraged what we were selling to maximize what we needed to buy so that we had remaining funds for service needs & to add to our renovation budget.
Once you become financially savvy and debt free, it’s so hard to both spend money and stay the course of your financial goals. We know that the more improvements we add to our historic home, the more value it adds as an asset vs spending too much money on a car that loses value quickly. Overall, we’re very happy with our Jeep & excited to have a family car for us all to fit in.