When is the best time to trade a truck?

[Topkicker]

Here's another angle. Why not put the truck on craigslist or traderonline and sell it yourself? I never trade in anything. Why let the dealer make the extra $$ on resale when you can put it in your pocket? If its a clean KR, it will sale. Just my 2 cents.

 

[5030]

The best time to trade a vehicle, truck included...

Is when you want to...........:laughing:

 

[bdog]

Would you be looking to buy another late model used truck like you did with this one, or are you thinking brand new? Also you don't really say whether you did the last transaction late or early in the model year and how many miles were on the current truck when you bought it and how many miles you put on each year. All of this will have a bearing on your decision.

I feel if you're able to pick up a slightly used truck still under warranty like it seems you may have done with this last one, then I would look at upgrading to another slightly used unit. It all depends what the availability of late model used is in your area, how much it will REALLY cost you and how much time and interest you have in shopping for a used truck.

Late model used. Probably 2 years old.

I bought my 08 in September 09 with about 40k miles on it.

 

[bdog]

The depreciation isn't evenly spread over the years. You figure it's cost you ten grand for the two years you've owned it. It cost the first guy ten grand or more for one year. If you buy a new truck, you're going to be that guy.

Your truck, assuming it doesn't explode, ought to be worth four or five grand even when it's ten years old. That means the depreciation hit is less and less the older it gets.

You only need decide if the increased maintenance costs for an older truck adds up to more or less than the depreciation saved by keeping it. On my 2003 Super Duty crew cab 4x4 diesel that is the case. I've spent a couple grand in the last two years on repairs, but my depreciation loss is getting pretty low.

Yes I know it is not evenly spread and the guy that buys it new takes the huge hit. That is why I never buy new. I just wonder about years 4-7 and how that shakes out. My dad always kept his trucks 6 years and I saw him several times sell trucks that cost 30k+ new for 3-4k with 250k miles on them. Seems like he "lost" 25k over 6 years by keeping the truck and driving it into the ground and maybe if he traded every 3 years and lost 12.5k each time he would be in the same position money wise but would be driving newer lower mileage trucks. I don't know just thinking.

 

[TroySD]

Being that the question was "when should I trade", I'm assuming you are implying what is the best time in a vehicles life span to trade.

Having worked in a dealership's finance office here are some things to consider. In a vehicle of that size, with that high of a value, most customer are going to have to finance the amount in order to afford it. Banks tend to not lend very willingly on vehicles that are older than 7 years or have over 100,000 miles. There are exceptions to those rules but generally they require large down payments and excellent credit.

The best option for trading is to trade a few thousand miles before 100k, making sure your vehicles are less than 7 years old. That allows the dealer to resell the vehicle rather than taking a wholesale bid from an auction or wholesale dealer. (buy here pay here lots).

As far as timing...end of quarters, end of months and end of year are the best time due to bonus programs, quota's etc for the dealer to hit. We would literally lose $2-3k on a new car sale at the end of the quarter to hit manufacturer quota in order to hit a $250-300k bonus. Salespeople tend to be rewarded for those kind of bonuses so they are more apt to push for your business during those periods. Just my 2 cents

 

[slowzuki]

Around here once the odometer hits 200,000 km (120,000 miles) or 5+ years old the dealers won't touch it and it goes to wholesale auction, second tier lots or private sale.

As an example, I bought a 2001 F-350 4x4 crew cab gas in 2010 for 1350$, most were about 5-6000$. At the time a 2005 with the same mileage was about 10-15,000. New was about 35,000$. The depreciation is pretty steep then starts to tail off after 5 years or so.

 

[bucktaker]

I think drive it into the ground and make car payments to yourself is the best money wise. That truck should do another 100-150k easily then sell it on CL to someone with cash for a cheap work truck. The poster about fianicing problems is spot on anyone with enough cash reserves is not going to buy outright at 25k

 

[xtn]

Yes I know it is not evenly spread and the guy that buys it new takes the huge hit. That is why I never buy new. I just wonder about years 4-7 and how that shakes out. My dad always kept his trucks 6 years and I saw him several times sell trucks that cost 30k+ new for 3-4k with 250k miles on them. Seems like he "lost" 25k over 6 years by keeping the truck and driving it into the ground and maybe if he traded every 3 years and lost 12.5k each time he would be in the same position money wise but would be driving newer lower mileage trucks. I don't know just thinking.

I follow your line of thinking. But since the depreciation hit harder in the early years, buying newer means you might be losing 15k instead of 12.5k each time, while buying and owning from years 3 to 6 might only lose you 10k each time.

 

[jcmseven]

I have come to the conclusion that "never" is likely the correct answer. Unfortunately, that is not much fun. I do know, as others have stated, that for the best deal getting a truck out of existing inventory toward month's end tends to make a big difference. With regard to depreciation, I suppose one advantage of having a diesel truck (I hope I read that correctly) over gas which costs more at purchase is it tends to bring more on the other end with sale. The 6.4L engine has had mixed reviews, but I had one and liked it. The depreciation curve on these type trucks tends to be quite flat after two-three years and even with higher mileage. Part of this is the market in which they exist. Folks looking for an HD level truck usually know that is what they want, regardless of economy and get it. The other group are the schoolboys that want a big, cool truck but do not have a particular need (I was once in the first group, now maybe have gravitated to the second--though I am not in school). That group tends to buy also, with less effect of outside economy. My point here is that a truck like yours, in good shape and well-maintained, will hold its value in my opinion fairly well over the next 20-30K miles, allowing you to decide what you want because they seem perpetually popular. I view it as being OK to look and even buy if you can get that "end of month" deal. I know that I was looking seriously at a new GMC about a month ago and my dealer called me three days from month's end cutting another $1500 off the price. I decided not to buy then, but I think this action shows the thinking expressed by many in this post.

John M

 

[MF 1532]

You say you use the truck in your work , the dependability and tax depreciation would help make my mind up . I just traded one of our work trucks off . 2006 with 96,000 miles , always before 100,000 miles and/or when depreciation runs out . My CPA says always trade , never sell , messes up depreciation schedule , if business truck .