Who can afford a new truck anymore?

[MossRoad]

Some people spend what their friends think they make

Nice! :laughing:

 

[MossRoad]

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.

50K per year is more than 3 times the annual average. You're going to wrack up three times the repair bills in the same amount of time.

 

[MossRoad]

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

Seven years ago we bought a 93 suburban with 68K miles on it for $6000.00. It now has 109K miles. Last week I put $950 in steering, suspension, fuel pump, distributor and power steering pump and hoses and a brake line. Also put a set of tires on it for $700. So, I've got about $7650 in it for 7 years, so $91 per month. 41K miles in 7 years, so about 5800 miles per year. I forgot I put two tires on it soon after I bought it, so that's another $300. So, lets say $8000 if 7 years, or about $1150 per year, or $95 per month.

Anyhow, I plan on $1000 per year in car repairs per vehicle and put that money aside every year. If I don't use it, I keep adding to the fund anyway. After 35 years, believe me, we have plenty for emergencies! :laughing:

With that said, its an old truck! It has anti-lock brakes and that's about it. No airbags. So, its not a very safe vehicle by any stretch of the imagination. But its dependable and suits my needs. Its comfortable and rolls down the road just like anything else. It gets my tractor to the farm and back and hauls big stuff for the family. And that's all I need it for. We have a 2013 car that meets my wife's criteria, that being nice enough to drive to funerals and weddings.

 

[kenmac]

All my personal vehicles are purchased used... All my company service vehicles are purchased used...
I don't care what the interest rate is.... Mine is always O%

People haven't heard ,that the paid off mortgage has taken the place of a NEW vehicle ,as the status symbol of choice !

 

[MossRoad]

All my personal vehicles are purchased used... All my company service vehicles are purchased used...
I don't care what the interest rate is.... Mine is always O%

People haven't heard ,that the paid off mortgage has taken the place of a NEW vehicle ,as the status symbol of choice !

Sounds like Dave Ramsey talking! :thumbsup:

We've been in the black since we said "I DO" and are debt free for the most part for 15+ years. Life's good.

 

[kenmac]

Sounds like Dave Ramsey talking! :thumbsup:

We've been in the black since we said "I DO" and are debt free for the most part for 15+ years. Life's good.

Then, You know U ,and I are on the same page.. I have been debt Free for about 15-20 yrs myself.. Ever since I started listening to him.. If you do as he says,, It will change your life !

Like you,,I paid all of both of my son's college,so they wouldn't come out having student debt..

I make payments to no one
Now I have CASH !
Debt free is the only way to be !

I watched my mom ,and dad struggle to the end of their lives..I knew I didn't want l
to live all my life owing someone.

I knew I had to change the family tree

In a couple more yrs , I'm going to sell off this business ,and retire !

Freeeeeeeeeee Doooooooooom !

 

[ultrarunner]

Could I afford a new truck... yes... even the license and insurance.

Do I see value for my money... no

As long as my older trucks continue to provide good service... there simply is no need.

The funny thing is keep a vehicle long enough and many will start appreciating...

Today, we had mandatory home fire inspections... happens every year for compliance... the fire inspector was very much interested in two vehicle... my 68 Mustang Convertible I have in the carport out back... and my 91 Stepside Silverado... neither are for sale... yet people are always asking about the Silverado because I drive it... most never see the Mustang... I've got less than 4k tied up in both of them together and the Mustang has a rebuilt 302 in it...

 

[kenmac]

Could I afford a new truck... yes... even the license and insurance.

O don't get me wrong.. I could buy all new vehicles tomorrow If I wanted them..
I just don't see where I would come out ahead in the new vehicle game !

 

[MossRoad]

Could I afford a new truck... yes... even the license and insurance.

Do I see value for my money... no

As long as my older trucks continue to provide good service... there simply is no need.

The funny thing is keep a vehicle long enough and many will start appreciating...

Today, we had mandatory home fire inspections... happens every year for compliance... the fire inspector was very much interested in two vehicle... my 68 Mustang Convertible I have in the carport out back... and my 91 Stepside Silverado... neither are for sale... yet people are always asking about the Silverado because I drive it... most never see the Mustang... I've got less than 4k tied up in both of them together and the Mustang has a rebuilt 302 in it...

You know you're killing me, right? :laughing:

 

[MossRoad]

Then, You know U ,and I are on the same page.. I have been debt Free for about 15-20 yrs myself.. Ever since I started listening to him.. If you do as he says,, It will change your life !

Like you,,I paid all of both of my son's college,so they wouldn't come out having student debt..

I make payments to no one
Now I have CASH !
Debt free is the only way to be !

I watched my mom ,and dad struggle to the end of their lives..I knew I didn't want l
to live all my life owing someone.

I knew I had to change the family tree

In a couple more yrs , I'm going to sell off this business ,and retire !

Freeeeeeeeeee Doooooooooom !

Just don't forget to be thankful.

We often think how fortunate we are to have had good, long-term employment and that we had a plan from the start and weren't thrown many curveballs on our journey. Its too easy to forget that even with the best planning, double job loss, catastrophic health issues, act of god, etc... we could be over the falls in a barrel. Sometimes it happens to folks through no fault of their own. However, we don't see a lot of folks out there with "a plan" that they've had since marriage.

There seems to be quite a few sensible people here on TBN. I think its just the demographic. But I can guarantee that most folks in this country are not even remotely aware of where their finances go on a daily basis, let alone weekly, monthly or annually. They have no clue as to how much a new car really costs in total and how much they will spend in their lifetime on automobiles.
:confused3: