Can you help me with expensive decision??

   / Can you help me with expensive decision?? #1  

jcmseven

Veteran Member
Joined
Dec 19, 2004
Messages
2,314
Location
western NC
Tractor
JD 2320; 4520
Fellow Posters:

As some of you know, I have a 2009 GMC 2500 truck with the Duramax diesel engine. I bought the truck new in May, 2009 and have since put a bit over 50K miles on it. It has been trouble free and done everything I have needed. Like many of us, my situation is one of nearly constantly evolving needs. When I first bought the truck, I towed a heavy 4520 JD tractor back and forth on mountainous roads to my parents' place 2 1/2 hours one way about four times monthly and towed generally about five to seven times more monthly and some distance each time. Now, with my parents selling off some of the property associated with their place due to aging, I sold my big tractor and use just a 2000 series JD and a couple of Gators, none of which weigh that much. That said, I use my truck as my daily driver--and I drive a lot. My wife drives an Acura MDX that we bought new in 2005. She drives a lot, too and has 145,000 mile on her car. We have had it regularly serviced; replaced the timing belt at 100K with spark plugs and redid brakes and tires recently. It literally runs the same as it did new, burns no oil and gets really good mileage for what it is. It is also our grunt car; we have 5 year old twins that are neat--but they are 5. We keep the Acura mainly for local driving, though it is certainly reliable enough for us to take on trips, which we do often (this weekend, in fact). I am very particular with my truck and both interior and exterior I try to keep spotless, a challenge due to it being black in color on the exterior.

About six months ago, I informally spoke with my selling GMC dealer about the new Denali 2500 pickup coming out. I had heard they were coming and wanted a chance to look at one when one came in, which it did last week. The dealer called me and I had a chance to drive a beautiful 2500 Denali Crew Cab diesel, fully decked out and unfortunately with a $64,000 sticker. It was white (not a color I generally like in trucks but this one looked great). I would have to say it drove great (I kept it overnight and put about 150 miles on it) but honestly without towing and on my usual drive it did not drive any smoother than my current GMC, but looked more flashy. I did not tow with it, obviously. I asked the dealer to work up a price for me. It is a very good price in my opinion for the truck and they offered me a more than fair price for mine if I wanted to trade. Thus, I am in the dilemma of whether this makes any sense or not. My wife and I both work and our jobs are high stress and in my case poor hours too. I have gone through the "you work hard, you deserve it" spiel to myself, but we all know this is really not true in real life. We have had the good fortune in this economy to have kept our jobs and done about the same financially as last year, but I feel a little uneasy about spending on a larger scale just yet. Can we afford such a purchase? Sure, but like everyone else I also have other obligations such as continuing to fund our retirement and the kids college fund, etc, that I could and probably should continue to fund (we already do this anyway) even more vigorously. On the one hand, that seems logical to me to be concerned about these things, yet on the other hand, we always have something I could prioritize higher upon which to spend or invest, so I keep coming back to that.

My question: the 2011 GMC has an upgraded frame, brakes, front axle, larger fuel tank, upgraded engine power, supposedly 1-2 mpg better highway economy, engine exhaust brake now, and in the Denali case a few additional bells and whistles--and a rewound 3/36000 warranty. This could be had for essentially $17,500 price difference in trade. Is it worth it given the situation noted above? Am I making a mistake looking at a truck when I have one with low miles for a diesel that has given no trouble. Should I just forget this, and run our vehicles into the ground and look for different ones then?? I am not looking to justify buying something I do not necessarily need, I am looking for input from folks who buy and use trucks as do I to make sure I am not blinded by the new truck envy and make a bad decision. On a side note, I have even considered going with a less expensive gas truck now due to my reduced towing need, but I really think I would have a hard time going away from a diesel at this point regardless so that though has not made in far in my little brain.

Thanks for the input, John M
 
   / Can you help me with expensive decision?? #2  
It's your money. Do what YOU want to do.

I have a 2005 F250 Powerstoke pickup. I just turned 180K miles. I plan on running this truck into the ground. It owes me nothing and is extremely reliable. I alos don't tow as much as I used to, but 4 wheel drive is a requirement where I live in Vermont (private road). In 2008, I installed a Vegistroke kit, and now can run waste veggie oil or diesel fuel. Great money saving system!

I also have a 2005 Ford Focus for commuting to and from work when the weather cooperates. This car has over 70K trouble free miles on it. The Focus is also so much easier to park then the truck! And the Focus gets better than 30mpg, compared to the truck at 17mpg!

Maybe you should keep the truck and get a "commuter car". Mustang, Camaro, or something along those lines?

I have already started to look for another vehicle to add to the "fleet". I'm looking for a 2008 or newer Ford Expedition to use for towing lighter loads. (My biggest fear is that I will have a catastrophic failure of some sort while traveling cross country this coming summer with the F250.) A newer Expedition will alleviate those fears. And with the SUV body style, it's easier to transport the pups.

If I were you, I would look at a 2011 F250 - but then again I'm a Ford fan. And you probably won't get as much money in trade at the Blue Oval dealer.

Again, it's your money and only you know your true financial situation.

Good luck with whatever you decide.

Marc
 
   / Can you help me with expensive decision?? #3  
I'm sort of in the same situation but different:laughing:, I'm sick of driving a truck! I wanted to drive one "do it all vehicle" so I have been driving a Ford F150 Crew for a few years. Other then daily business use I use my truck to pull my MasterCraft boat once in the spring and fall and twice a year ferry the 2520 tractor between my Company shop to the cottage and back. A truck is easy to throw a bike in the back and head to the local Mountain Bike trail ( I hate having to tie it down on a rack) but it is a pain parking.

I want to downsize to the Ford Explorer or Flex, I can pull the boat when I need to and throw the bike in the back if I drop the rear seats. When I need to move the tractor I can use the Company pick up.
 
   / Can you help me with expensive decision?? #4  
I am not looking to justify buying something I do not necessarily need, I am looking for input from folks who buy and use trucks as do I to make sure I am not blinded by the new truck envy and make a bad decision.

John,

I don't fall into the referenced category, but I do have a few thoughts on the "economics" of your quandary.

There is a substantial operations research/management science literature on "optimal" machine/equipment replacement policies. The general focus there is on minimizing the cost of obtaining machine/equipment services over time. The models used in that literature vary in their assumptions and often require sophisticated math for their solution. Here's an example.

http://css.snre.umich.edu/css_doc/CSS04-01.pdf

I speculate that if your only objective is to minimize ownership/operating costs, it wouldn't pay to trade. But many (most?) folks, myself included, trade vehicles more frequently than would be suggested by the models and thus incur higher costs. That's not to suggest that they (or I) are acting irrationally, they (and I) obtain satisfaction from owning and driving a new/newer vehicle. Each of us has different preferences, so only you can decide what is "best" for you.

Your post mentioned that you are funding your retirement plans and your kids' college funds. Again, each of us has his/her own preferences, but fully funding those items and a rainy day account would have a higher priority in my preference ordering. But that's just me.

Steve
 
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   / Can you help me with expensive decision?? #5  
I have the same issue, drive a truck as a daily driver, need it to pull boat and is very handy to have when you need one. With the price of fuel going as it is, and you know it will only go one way UP. I am inclined to get a very small car and keep the truck for when I need it. In your case I think you have all the truck you need that will last for a long time especally if you get a gas sipping commuter car, bet one can be had used for less the 17K so you can put the difference in the rainy day fund. You will have the best of both worlds. I can understand the call of the new car sirens but they only cost you big $$ in the long run.
Good luck w/ your decision
 
   / Can you help me with expensive decision?? #6  
My two cents: You are getting caught up in the consumption trap / keeping up with the Jones syndrome. Take a cool look at where your money is going and whether you are on track with your emergency fund and retirement funding.

You will need $25 saved for every dollar you take out yearly of your savings once you retire. So, even a million dollars only provides $40,000 a year income. That includes everything - taxes, health care, you name it.

I know that with a high stress job it is easy to think that a new truck salves away some of the stress, but there is an older you in the future that is depending on you now to look out for him by setting aside adequate savings, so a job loss or forced early retirement isn't a disaster.

Been there, done that. :2cents:
 
   / Can you help me with expensive decision?? #7  
I will tell you there is no better feeling than paying off a nearly new vehicle.

As you all know I have 3 trucks. 04 & a 06 Ford diesels and a 08 Titan. I just payed off the Titan. Took me 23 months and 33,000 miles. Bought it in 09 as a dealer leftover.

I was like you 10 years ago and always wanted new and just accepted payments. Now I pay myself those payments in savings, in the case of the Titan its $700 per month now or $8400 a year.

Keep your truck. It does three times what you need. Pay it off quick by doubling payments, tax returns, bonus monies, ect.

Chris.
 
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   / Can you help me with expensive decision?? #8  
I will tell you there is no better feeling than paying off a neatly new vehicle.

Chris,

An even better feeling is paying cash. I'm getting old, but I seem to recollect even better feelings. They didn't involve trucks.;)

Steve
 
   / Can you help me with expensive decision?? #9  
The decision problem??:)

From someone who drives most vehicles till the cost of repairs for reliability become exorbitant all I can say is keep the present truck. Save some money, put it in an account for future vehicles or whatever?:thumbsup::thumbsup:
 
   / Can you help me with expensive decision??
  • Thread Starter
#10  
Regardless, I would plan to pay cash, even for the new one. The opinions I hear here are similar to my own. I drove the truck for a day and liked it, but the entire time I drove I was mentally calculating how many funds intended for something else I would have to give up. In my mind I just have felt as much as I would want something like this, it is not worth it in the long run. I maintain my vehicles well and under these circumstances they last a long time. My truck is in showroom condition and to me it does not seem these upgrades noted are worth the difference in cost. Interestingly and for those contemplating such a buy, I did notice some difference in ride quality between the two, but did not notice any real difference in perceived power, though on paper there is supposed to be some. What I am hearing here echoes what that little voice in my head is saying: it is not worth the money.

Thanks, John
 

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