'02 Jeep Grand Cherokee vs. '03 Chevy Trailblazer

Pretty easy, IMO. Take the new car.

 

Cherokee.

 

trailblazer.

 

Cherokee.

 

Sit down and do the math on it. I've built a quick model that looks at the car buying decision -- which unfortunately is saved on my work computer and I can't access it at the moment (and my Excel isn't working at the moment on this computer). It's not hard to build however. Project out your payments on each note and figure out how much of each payment is principal and how much is interest. Assume a depreciation schedule for the value of the car (roughly 10% a year -- probably more in the first year of a new car). Assume you sell the car in Year X at the book value of the car (purchase price less accumulated depreciation). Subtract the principal remaining on the note from the sales price in Year X. This is your "terminal value" or in other words the gain on sale. Add up all your payments which you made over the life of the car and then subtract out your gain on sale. This is your overall capital investment in the car. Discount the cash flows appropriately (probably at a low rate since inflation and interest rates are very low at the moment). Assuming you are indifferent with regard to your opinions of the cars, choose the car which requires less investment. My guess is that the Cherokee will be cheaper, but you might be willing to pay more for the warranty on the new car as well as not having to worry about what the previous owner did to the used car. Keep in mind there are a *ton* of Cherokees (Laredos) on the market. It won't be easy to sell it when the time comes unless you slash the price.

 

new car is the best way to go, that way u get a lot more with your vehicle. like roadside Assistance, and you know the history of it if its new. ;o)

 

With such a careful analysis I am surprised you ended up with a "luxury SUV" instead of a Honda Civic So much for using a rational decision making model when the overall assumptions going into that choice are biased by emotional attachment.

BTW I am half kidding about the above.

Well TJ, from the above is it safe to say you have/lease a BMW or Lexus. Of course if you got the Lexus you could have had essentially the same far for a few thousand less with close resale under the Toyota name plate. Same is true for the Cadillac SUV with the other GM models. How could any rational consumer model end with a decision paying 5-10K extra when a lower price car with 99% of the same parts except a little different $10 Caddy or Lexus symbol is not on it?

Hear is a hint, for most people, for most large life or consumer decisions, they are not foremost made logically.

Drewdog--from the above I think the GM will be the nobrainer if you are set between these two cars--but I would think the payments would be less than you project for the Trail Blazer if you are getting close to 0 or 1% GM financing that should still be going.

If you really want an SUV, and don't mind a slightly smaller model for a similar price--I would suggest the CRV, RAV4 or the Forester. You would have a much more reliable, better driving, better milage, vehicle that would do everything the others would off-road 99.9% of the time, unless you are pulling a boat, three-wheelers on a trailer, or something like that.

 

I would go with the older one, only because of the fact that you will be putting so many miles on it.

Putting heavy miles on newer cars, especially brand new, destroys the value VERY VERY quickly and youll find yourself upside down on the loan/value ration for as long as you own it.

By investing in an older one, you dont get hurt as much on the resale/trade in when you eventually decide to get rid of it.

PS - With the heavy miles, I would invest in an extended warranty (through the dealer (dont go 3rd party on that)). Keep in mind too that GM cars are much cheaper to repair should something go wrong than most others (including Chrysler).

 

Trailblazer.....Be careful using Trader_Jorge's TOOL

 

Trailblazer has 270HP I think. Just remember, if you're buying a JGC, buyer beware. Look at the reviews on edmunds if you don't believe me:

Jeep Grand Cherokee consumer reviews

 

Here's some of the feedback

Review: Since my purchase of the Grand Cherokee, I have experienced multiple suspension and steering problems. After the amount of repairs I have incurred in just 9 months, I will most certainly never purchase another Jeep.
Favorite Features: Good looks, very spacious and comfortable interior.
Suggested Improvements: Need major improvements in quality and durability.

Review: Terrible vehicle. Have owned another GC and it have had to spend $$$ in repairs at 50K.(Happened after buying lastest and last Jeep). Both differentials went as well as Xfer case.

Review: DO NOT BUY a Jeep.3 recalls, in the 1st year. Head gasket is leaking oil, The dealers service advisor calls it, "sweating", and states that it is normal. Took me to see another Jeep, and said that this is normal, and acceptable. Seems to me that DC has a quality control problem.Will not be keeping after lease expires. Too bad, it is a beautiful vehicle, with crappy quality

Review: Coming to the end of a 3yr lease on a 1999 Grand Cherokee. Here are some of the lowlights of my last 3yrs. Doorlocks went out twice,1st year and again in the last 6 mos. . Drivers seat weld broke. Mickey mouse plastic trim shows much wear . Trasmission occasionally slips. No guts at all. All my driving was onroad, I couldn't imagine taking this wimpy POS offroad. I would absolutely never buy or lease another Daimler-Chrysler product ever again. Just a terrible product! Good luck to anybody who would buy one of these in any year. Every other Grand Cherokee owner I've spoken to has had a similar experience

Review: Bought new (for a really good price) in March of '02. Started having trouble from the get go. Had the left rear tire blow out every 3,000 miles, then at 11,500 the tranny blew up. That's just the beginning. Nonstop problems...gas guzzler...inside is bland. If you do get one get the V8

 

Trailblazer. It has so much more power than a Grand Cherokee. I've driven both and the Trailblazer wins hands down in my book.

 

I say Cherokee because my f*cking Tahoe has broke down three times in the past 20,000 miles

 

Buy a used 4-Runner. I had a '97 & then sold it to my wife's cousin, neither of us have ever had a problem with it. You don't go wrong with the Toyota brand.