The Payoff For a Brand New Jeep Gladiator

Car debt has been on a rampage lately. The APR has been awful with the average being 7.58% in Florida. So, today we will be doing a little math to get a feel for the numbers of buying a brand new 2023 Jeep Gladiator Let’s check out different Annual Percentage Rates, term lengths, and different down payments just to see the difference you have to pay to get in a brand-new car.

This vehicle I have to say is one of my least favorite looking vehicles on the road today. Doing some quick math to add to the terrible decision seemed very fitting.

Total Estimated Selling Price is $60,215

An AWFUL APR of 20%

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20% no trade-in value 72 months = $103,896 financing paid after a down payment per month is $1,443. Total paid: $103,896

20% APR 10% down 60 months = $86,220 financed paid after a down payment of $6,000 AND Per Month is $1,437. Total: $92,220

20% APR 20% down 60 months = $76,680 financing paid after a down payment of $12,000 per month is $1,278. Total: $88,680

20% APR 50% down 36 months = $40,428 financing paid after a down payment of $30,000 $1,123 a month. Total: $70,428

Hideous APR and hideous payoffs. $43,000 more dollars than the original purchase price. You can buy a really nice car in cash for that money.

Let’s look at a good APR now.

Great APR of 3%

3% no trade-in value 72 months = $65,880 financing paid after no down payment per month is $915. Total paid: $65,880

3% APR 10% down 60 months = $58,500 financing paid after a down payment of $6,000 AND Per Month is $975. Total: $64,500

3% APR 20% down 60 months = $52,020 financing paid after a down payment of $12,000. Per month is $867. Total: $64,020

3% APR 50% down 36 months = $31,644 financing paid after a down payment of $30,000. $879 a month. Total: $61,644

These payoffs didn’t even get over $6,000 in interest, no matter the length or down payment. Even the one with no down payment and six years. This is not financial advice but there is a way that the math would work if you wanted to extend the term length to six years and use the down payment into investments, not financial advice. Look for more qualified people. But if you put that $12,000 or $30,000 in investments the rates of returns should be greater than the 3% interest lost.

Now that we got both extremes out of the way. Let’s get closer to the average of a new car.

An Average Chrysler’s APR of 6.9%

6.9% no trade-in value 72 months = $73,728 financing paid after no down payment per month is $1,024. Total paid: $73,728

6.9% APR 10% down 60 months = $64,260 financed paid after a down payment of $6,000 AND Per Month is $1,071. Total: $70,260

6.9% APR 20% down 60 months = $57,180 financing paid after a down payment of $12,000 per month is $953. Total: $69,180

6.9% APR 50% down 36 months = $33552 financing paid after a down payment of $30,000 $932 a month. Total: $63,552

You will have to pay $13,513 more than the car is worth with the interest payments if you extend it out for six years with no down payment.

Let’s double the APR and give it to the next person.

Pretty Rough APR of 14%

14% no trade-in value 72 months = $89,352 financing paid after no down payment per month is $1,241. Total paid: $89,352

14% APR 10% down 60 months = $75,720 financed paid after a down payment of $6,000 AND Per Month is $1,262. Total: $81,720

14% APR 20% down 60 months = $67,320 financing paid after a down payment of $12,000 and per month is $1,122. Total: $79,320

14% APR 50% down 36 months = $37,188 financing paid after a down payment of $30,000 $1,033 a month. Total: $67,188

With 14%, you must pay $29,137 more than the original purchase price if you extend. This type of APR can really screw you in the long run.

These are just some examples of pricing if you are in the market to buy one of these cars. Please just use this as a starting point for your research. There are lower lengths and longer ones. 84 MONTHS is offered at some places. Seven years of your life being plowed by interest. At least if you want to pay $100,000 for a vehicle at least make it a good-looking one.