Who can afford a new truck anymore?

[houstonscott]

I will never again own a new truck..I will not pay someone that kind of price to eat the depreciation on a new vehicle..

People who make that argument simply codify themselves because they can't afford a new one. HS

 

[buickanddeere]

Sdef. I'm with you. Many people waste more time and money crutching along old junk than what new costs.
I purchase either new or a dealer demo. Then service it properly and drive it until new becomes cheaper per mile than the worn out vehicle.

 

[Bird]

People who make that argument simply codify themselves because they can't afford a new one. HS

You couldn't be more wrong. My Dad could have easily afforded new vehicles, but he always said to let someone else take that first couple of years depreciation. And when we lived in Navarro County, our nearest neighbors who owned more than 120 acres, leased a lot more, ran more than 100 head of cattle, had 3 tractors, etc. and even bought a new haybine and baler, but they both said he told his wife, before they got married, that she'd never have a new car because of the depreciation on new ones. She drove a nice Lincoln, but it was several years old.

I've bought a number of new ones, but probably won't do that again. When I bought our 2014 Escape last year (in 2014), I could have bought a new one instead of one with 16k miles on it, but why should I have done that?

 

[sdef]

You couldn't be more wrong. My Dad could have easily afforded new vehicles, but he always said to let someone else take that first couple of years depreciation. And when we lived in Navarro County, our nearest neighbors who owned more than 120 acres, leased a lot more, ran more than 100 head of cattle, had 3 tractors, etc. and even bought a new haybine and baler, but they both said he told his wife, before they got married, that she'd never have a new car because of the depreciation on new ones. She drove a nice Lincoln, but it was several years old.

I've bought a number of new ones, but probably won't do that again. When I bought our 2014 Escape last year (in 2014), I could have bought a new one instead of one with 16k miles on it, but why should I have done that?

Understand and agree with your scenario and I did similar with my 2008 Subaru Outback turbo purchased in 2009. I got it as a dealer demo with ~ 6200 miles on it and ~ 30% of sticker. I had intended to keep it for many more years, but had to trade it in to get this new truck. So now my 1996 Jeep GC AWD with 173k off road and big boat towing miles (purchased in 1998 with 16k miles) will be my everyday vehicle as it has been anyway, as it is packed full of chainsaws and other support gear, and the new truck will be a limited use vehicle. For a few years I have been working from home (thank you Internet) so my cars do not go many places daily except to work at the property.

In my area used trucks command near new prices- as do tractors. I found it very hard to purchase a 2012 GMC 3/4 ton diesel, 4x4 with 40k miles for $40,000 and that was the rock bottom price. I see now, several months later it is down to $39,500 at the same quality used car dealership. Terrible bang for the buck for me. Most trucks of any reasonable year are priced relatively similar. Really crazy pricing, in my view and I see no good reason to purchase used at these prices. And I emphasize, had the same issue when I purchased my new tractor. I just do not understand the used pricing these days of trucks as the dealers lots are full of them.

 

[sdef]

Just thought of something else to add to my reasons not to purchase a used diesel. I became apprehensive as I was investigating used 3/4 ton trucks. For my situation, I came to the conclusion I only wanted a V10 gas engine for the rated towing capacity with a reasonable gear ratio. In months of looking on the Internet within 100 miles of my home, I found one well used V10 truck and my farmer friend found a Ford with the V10 badging but it was actually a smaller engine.

So I moved to diesels. I became disillusioned as the 6.0L Fords were spotty in performance- meaning one 2006 with 119k miles drove very well with excellent power and another 2006 6.0L diesel (same new truck dealer) with 99k miles had much less power. And the 2012 GM I mentioned in my previous post had a lack of power also. And we won't even talk about all of the Ford diesel issues after the fine 7.3L. My CTD is awesome in the power department.

SO in the end, purchasing new became a requirement and not a want. For me, there were just too many issues with purchasing used for a heavy duty truck.

 

[MossRoad]

People who make that argument simply codify themselves because they can't afford a new one. HS

You really believe that? :laughing:

The last two vehicles we purchased were less than two years old and had several years left on their factory warranty. They were both 1/2 the cost of new. Half. Excellent condition. Low miles. Good tires, etc.... we sent our kid to college debt free on the savings.

 

[MossRoad]

I could never understand that logic. Who is going to turn around and sell just after buying a new truck?

We purchased a used car from a guy that bought it for his wife. All factory options, etc.... after 3 years she wanted a jeep. He sold it to us for half the price of new. Yikes!

 

[downsizingnow48]

When I bought the 2012 F150 (sticker 45k) the out the door price was 37k. At the time, 3-4 year old used trucks with similar equipment and 30-40k miles were going for 33-35k. From my point of view buying used did not make sense.

 

[houstonscott]

The only reason to buy used is because you simply can't afford new or you need the saving for other expenses. People who buy new get the best and most reliable part of the vehicle, are not subject,to poor break-in periods, other abuses with long term effects, hidden stupid modifications and accidents or flooding. If you are buying used you may not fully understand just how ahead of you others may be financially. On top of that you haven't avoided depreciation. HS

 

[MossRoad]

I have purchased mostly used cars most of my longish life and repaired them as required, including a few engine rebuilds or crate motor replacements, rebuilding automatic transmissions, etc. and have spent many hours at the drag strips with cars I built, all of this with seldom having concrete to work on or a garage to work in. I have even blueprinted my own motors, as much as one can do at a home shop.

I grew up in the muscle car area as a teenager and lived that life to its fullest for many of my years. However, while I really enjoyed that era, those cars and trucks can't compare to vehicles of today in terms of safety, build quality, reliability, handling, fuel mileage, power or anything else germane I can think of. I remember those days fondly, but will never own another vehicle of that era out of choice. The only positive attribute for me of those autos over today's autos is those earlier generation autos were easy to work on and had so much room to do so, while today's are nigh impossible for the home mechanic. Easy repairability was a good thing as their life span was relatively short and so was their reliability.

I drive all of my vehicles for many years and rarely purchase new or semi-new, so depreciation is never a concern. My new Ram 2500 diesel 4x4 is most likely the last vehicle I will purchase and I expect no major maintenance problems during its life span with me, which is important at this stage of my life and a primary reason I purchased new. Was it expensive? Oh, absolutely. But at this stage in my life it was worth it for the peace of mind and long-term reliability I expect to have.

I purchased a new tractor two years ago to clear my densely forested retirement property that has heavy clay soil and layers of rocks- many very large that required a tractor and grapple to move. I purchased new as I needed the reliability to complete this task whenever my employer decided it was okay for me to work on my own things. And now it is completed and the tractor and implements have paid for themselves while working very hard and providing supreme reliability when used at their maximum capabilities. A farmer friend of mine still has to work on his old Ford's on a regular basis just to do regular grounds maintenance around his place and there is no way his equipment would have completed my tasks in the time frame I needed. My stuff needs to work hard when I need them to and old and worn out does not work for me anymore.

So for all of you guys who want to purchase old vehicles and want to spend the labor to keep them going and are content with the reliability on long trips with your loved ones and the potential lack of safety should that vehicle be involved in a serious accident- good for you. I am no longer in that group. Oh, BTW, I no longer repair dishwashers, clothes washers, clothes dryers, coffee makers, home electronics, etc. But I do my own tractor preventive maintenance, modifications and troubleshooting as prior tier 4 tractors are still relatively easy to work on.

I agree with your outlook on things. However, near the end, you mention old vehicles... two-three years old isn't old. 8-10 is starting to get old and maybe out of date on advances in safety tech., etc...

And yes, this thread is on trucks, and they don't seem to depreciate as fast as cars. But any buck you can save and still get a good vehicle is a buck earned (my apologies to Ben Franklin).

 

[MossRoad]

The perennial debate. New or used? Lease or purchase?

Last time I purchased, because the truck was cheap, and the lease rates were high. This time I least because the lease rates were virtually zero. So, with the small amount of interest and the depreciation I'm only paying about $400 per month for the 2014 F1 50 super crew with the XTR option. And, in two years, I get a new truck!

So that equates to renting a truck for about $10,000 for two years?

 

[sdef]

I agree with your outlook on things. However, near the end, you mention old vehicles... two-three years old isn't old. 8-10 is starting to get old and maybe out of date on advances in safety tech., etc...

And yes, this thread is on trucks, and they don't seem to depreciate as fast as cars. But any buck you can save and still get a good vehicle is a buck earned (my apologies to Ben Franklin).

Agreed. My reference point in years for "old" is similar to yours and I was most likely thinking back to my muscle car era. .

 

[kenmac]

You really believe that? :laughing:

The last two vehicles we purchased were less than two years old and had several years left on their factory warranty. They were both 1/2 the cost of new. Half. Excellent condition. Low miles. Good tires, etc.... we sent our kid to college debt free on the savings.

Some people spend what their friends think they make

 

[RollingsFarms]

I recently bought a 2006 Z71 crew cab with only 75k miles. It was owned by an older gentleman I know and was always garaged. You can't find a scratch on this truck anywhere, not a ping, not a ding, not even a rock chip. The leather seats aren't even showing hardly any wear. I also have a 2014 Z71 but wanted this truck for second vehicle and I knew how well it had been cared for which is why I bought it.

 

[dmccarty]

There was an article in the Wall Street Journal in the last few days about a new F150 model, yes 150, that is aimed at high dollar buyers. This F150 model STARTS at $60,000. :confused3::shocked::shocked::shocked:

The article mentioned a guy driving a high end Mercedes selling his car to get the F150. This F150 cost more than a Porsche SUV.:confused2:

Later,
Dan

 

[Will_C]

I am the perfect candidate for a used truck-I only drive a truck 6,000 miles a year or so. My 2004 needs a bunch of repairs-mostly for emissions related items and exhaust. The truck has spent 11 years on the salt drenched roads of the Northeast, and I am reluctant to spend $3-4000 on an 11 year old truck-it also needs some other maintenance.

All I can find are 3-4 year old trucks that cost 80-90% of what I can buy new for. I am willing to take that kind of depreciation to own a new truck. I have owned my 3 trucks for 7.5, 8, and 11 years each. If I can find a 3 year old truck, 30-40k miles for $25,000 that is the same as a new one I can buy for 35-36 thousand-I'll be all over it. In 2 months of searching, I haven't found a single one within 100 miles of home.

Will

 

[Jstpssng]

We purchased a used car from a guy that bought it for his wife. All factory options, etc.... after 3 years she wanted a jeep. He sold it to us for half the price of new. Yikes!

I worked for myself for 10 years. One of the biggest mistakes I made was buying used vehicles. At 50K miles you're looking at tires ($800-1000) brakes, and any number of other miscellaneous things.
I was traveling all over 4 states, about 50k miles per year... I really lucked out because every time I had a major breakdown I was close to home.

Contrast that with a friend who buys a new truck every 36k miles when the warranty wears out; sometimes trading after 8 months. He takes exceptional care of it, banks his mileage check, uses his GM credit card for everything and puts his "GM bucks" toward the purchase; all he pays in maintenance is oil changes and car washes, he still has the original tires when he trades. He once told me that he gave his old truck and 4K toward his new one... at that time they had 3 of his used trucks on the lot.
I've spent as much as $7500 in a year on repairs, because the 4year old truck wouldn't run long enough for me to get ahead.

 

[houstonscott]

I worked for myself for 10 years. One of the biggest mistakes I made was buying used vehicles. At 50K miles you're looking at tires ($800-1000) brakes, and any number of other miscellaneous things. I was traveling all over 4 states, about 50k miles per year... I really lucked out because every time I had a major breakdown I was close to home. Contrast that with a friend who buys a new truck every 36k miles when the warranty wears out; sometimes trading after 8 months. He takes exceptional care of it, banks his mileage check, uses his GM credit card for everything and puts his "GM bucks" toward the purchase; all he pays in maintenance is oil changes and car washes, he still has the original tires when he trades. He once told me that he gave his old truck and 4K toward his new one... at that time they had 3 of his used trucks on the lot. I've spent as much as $7500 in a year on repairs, because the 4year old truck wouldn't run long enough for me to get ahead.

If it has gaskets or hoses 4-5 years. Hoses, brakes, coolant, tires, plugs, serpentine belts, lots of stuff at 50k. HS

 

[buckeyefarmer]

I have never ever seen a 2 yo vehicle for 1/2 price of a new one. Matter of fact, most 2 yo vehicles are usually priced HIGHER than new, when you factor in rebates, lower interest rates, etc... Wish I could find one of those deals.

 

[ultrarunner]

I grew up in the car business... family always drove used cars or demonstrators... not a new car to be seen going back decades.

Something nice came in and it would be the new family car until something better came along.

People that buy new cars and keep them do very well... especially if they avail themselves of rebates and promotions.

The ones getting killed are often the ones shopping payment without regards to term or with no so good credit that are willing to sign just to drive new.

Cars are not the same as they once were... a new car was a real symbol that you arrived...

The hospital where I work is full of new cars... even those that make a little above minimum wage are driving new...

It seems the schools of thought are buy new and sell with a little warranty remaining so the new buyer has confidence... keep forever... lease... or find a good deal on a used car with a known history.

Sometimes you have to buy new to get exactly what you need... sometimes the model you want has not been around long enough for used to be available.

One thing is for sure... every new car becomes a used car as soon as someone buys it.