Tips on Buying Cars: buying used grand cherokee 2000, minor scratches, high mileage

Question
QUESTION: Hi jeff, I just looked at a five door 6 cylinder grand cherokee 2000 with 105,000 miles on the clock. Dealer is offering it to me for $7600, this price includes the trade in of my currant 1997 jeep.(He is giving me $1000 value for it as a trade in). The interior of the car is in very good condition, with minor scratches on exteriour but Im concerned about buying a jeep with such high mileage. It comes with a cd player and sunroof. Do you think it would be a good buy? Although this price helps my budget Im not sure if its a good investment or not. Any advise would help! thank you, Gary.

ANSWER: 2 things you have to consider here: condition, along with previous repairs and maintenance. I believe condition is more important than mileage, but you have to weigh that against the Grand Cherokee's less-than-stellar reputation of the last few years.  So, you have to consider how this vehicle has been cared for, and what they've fixed lately.  Do you have access to this info- does the dealer have all the repair and maintenance records for the Jeep?  If not, I'd be very careful.  You may be looking at some significant repair expense in the near future.  If a lot of work has been done recently, then you'd be in a much better position.

---------- FOLLOW-UP ----------

QUESTION: Hi jeff,
I decided not to go with the last cherokee you advised me about it was too expensive for what I was getting.(sorry if I sent that question to you twice,didnt realize that.) I looked at another one it is a 2000 with 92,405 miles 6 cylinder 4wd with a sunroof and cd player. It has a few nicks and dints on the exterior while the interior is in good condition. Dealer is looking for $6950 but will reduce price to $5650 with the trade in of my car(giving me a value of $1500 for it). I will be paying cash so maybe I could get in for even a little less.(tax will be be an additional $400 or so). Do you think this is a good buy? Ive been told that high milage on cherokees is not too scary as they are good trucks. Any advice on this too? thank you so much. Thank you, Gary

Answer
It's impossible to judge an individual used vehicle without seeing it for myself.  The price is certainly better, and the Jeep-AMC 6-cylinder engine is one of the best.  Jeeps overall tend to have problems with the other stuff: A/C, secondary mechanicals, sound systems, electricals, etc...

The one thing I can advise is this: finance it through the dealer if at all possible.  Dealers make money on the financing, but get nothing if you pay cash, so forget about the idea of getting a better deal by writing them a check.  You'll get your BEST price if they figure out they can arrange the financing for you, and you don't know or don't care about the interest rate.  Negotiate a good price, and let them finance under their terms (several years at a high rate).  When the first payment becomes due, pay off the whole loan with the cash you were going to use to buy it, but whatever you do, DON'T LET THE DEALER KNOW UPFRONT THAT IT'S YOUR INTENTION TO PAY OFF THE LOAN EARLY.  They'll lose the kickback they got from the bank if you pay off the loan early (within the first 60-120 days), and so won't be willing to give you a good deal on the Jeep upfront.  In other words, play dumb and let them think they're putting one over on you.  You'll be far better off dollar-wise, even if you have to pay a little interest in the 30 days you'll have the loan out.