Buying a new truck or a used one?

[Elite]

Well I am looking for some opinions and some input on my current situation.

I have a 2012 pickup that Is approaching 200000km. I wanting to get into a newer truck. I could probably get 20-25K for the truck selling it privately. Dealer quoted me 15-20K for trade in. I also have a company truck that I drive mostly so I only drive my personal truck about 10000-15000km in a year. With most dealers offering 0% financing it is tempting to get a brand new one but I have not had a truck payment for a few years which is nice. So here are some options I am exploring.

Option 1. Sell the truck private. Put the 20k down on a new truck and finance the remaining. Payments would be a lot lower

Option 2. Finance the whole amount of the new truck at 0% interest rate and put that 20K into a low risk investment account and let it build slowly and if I ever need the reserve money for something it is still there.

Option 3. Buy a slightly used truck for 30-35K with cash money by adding some more on top of the 20K from the old vehicle.

I have only bought and sold a few trucks over the years and have never bought a new one so I am wondering what the best route to go is with only driving that amount of KM a year


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[Hoot]

Option 2a. Invest the money in a down payment on a second house, let the rent money pay the mortgage and some of the truck payment. After the truck is paid off, have monthly cash flow from your rental income.

 

[wapitibob]

Option 2a. Invest the money in a down payment on a second house, let the rent money pay the mortgage and some of the truck payment. After the truck is paid off, have monthly cash flow from your rental income.

A friend does that in NM but it ended here in about 1965.

 

[Scottyboy]

used, truck keep (or lose) there value so much buying new doesn’t make sense. And yes, this is me saying I wish I wouldn’t have bought a brand new F150 2 years ago for almost 60k

 

[pods8 (Rugged Stitching)]

Sticking to the new vs used part I usually look for 3yr old <30k vehicles when shopping for a “new to me”. They typically took the brunt of the depreciation already (slower from here on out), usually have a few years of warranty left, if your registration is based on value or age then a few years old is often notable cheaper in some areas.

 

[BRTreedogs]

I say keep what you got.
Spend the money on trips.
But generally any used truck around here people want pretty good change.
Maybe because I mostly look at toyotas.
But the used ones are generally due for tires, fluids etc.
If you wait for a good deal on new its really not that much more.
But the depreciation on an f150 is double that of a tundra.
I have found the best deals on auto trader.
Use the advanced search so you can find exactly what you want.
I saved $2700 on a new commuter car that way.
Sure I had to drive 12 hrs rd trip.
But I can't make $2700 in 12 hrs

 

[AZ8]

The 0% is a great option. I purchased my last commuter car that way. Worked out great. It’s basically free money for you to buy a new vehicle without using up all your cash reserves. As we all know, Murphy‘s Law always comes into play soon after a large purchase.....New roof, house HVAC unit goes out, major medical....etc. So it’s nice to have your reserves liquid for emergencies instead of tied up on a 35-40K vehicle parked in the garage.

Besides, after a year or two you decide a truck payment sucks, you have the option to pay it off without having accrued any interest. After 2 years of payments at 0%, a big chunk of the principal balance is gone.

2020 Ram 2500 4WD CrewCab Tradesman 6.4 Hemi 8 speed @47K 0%. $650x24=15600....... 47000-10000(down payment)-15600= 21400 which you said you already have.

Sure there’s depreciation, but so what! Life is short. If you can afford it, buy it. We don’t know what tomorrow brings. You‘ll never see a hearse pulling a U-Haul.

 

[sasquatch]

Option 2a. Invest the money in a down payment on a second house, let the rent money pay the mortgage and some of the truck payment. After the truck is paid off, have monthly cash flow from your rental income.

This. Money makes money.


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[KBC]

It's sad to say but anywhere close to me in BC $20k might be 5% down on a condo

We bought a new truck last year at 0%. I looked for months for a decent used truck and everything out there was overpriced junk. It was painful to spend $50k but in the end spending the $20K+ on something with 200,000 kms wasn't something I wanted to do.

I'd only sell yours if it's junk, if not I would drive it as long as you can. My previous truck was around 320K when I let it go and constantly needing repairs.

If you do buy new at 0% just invest the cash from the old one to offset the depreciation.

 

[Marble]

Option 3
Unless you are 100% debt free, have a funded retirement and savings independent or what you are using to pay for the truck, dont buy new.

You can get a 3 year old truck for substantially less than a new truck.

Put your savings from having a payment into a good mutual fund.

 

[pods8 (Rugged Stitching)]

0% interest paying still high monthly principal payments to offset the initial big depreciation hit isn’t a deal just because it’s 0% interest. (Think in the other direction your depreciating at a much higher percentage in correlation). With interest rates LOW in general it would need to be a hell of a deal to take 0% with lots of depreciation built in vs a couple percent loan on a lightly used rig. In either case you can finance at these low rates and don’t have to tie your cash reserves, not sure why that would be thought to be the case with used. It’s not a matter of new or have to pay cash.

 

[WRO]

A friend does that in NM but it ended here in about 1965.

What happened?

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[WRO]

Option 3
Unless you are 100% debt free, have a funded retirement and savings independent or what you are using to pay for the truck, dont buy new.

You can get a 3 year old truck for substantially less than a new truck.

Put your savings from having a payment into a good mutual fund.

Not a Toyota..

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[Beendare]

Do you own a business?Its worth setting one up, IMO.

Even a side hustle 'business' doesn't have to show a profit for 5 years to qualify.

This allows you to utilize tax write off for not just the truck but your fuel, insurance, repairs. Current tax law in US allows you to write off the entire cost of the vehicle against your income in one year.

Depending on your tax rate...the effective cost to you for a new vehicle is sometimes as low as 50%.

_____

 

[Corvus Corax]

Keep saving your money, and looking for the right used truck to come along. It doesn’t sound like you have your back against the wall with your current transportation situation.

 

[Hoot]

A friend does that in NM but it ended here in about 1965.

Yeah, and Oregon is not friendly to real estate investing.

The market in CO is pretty high too, that’s why I shop a few hundred miles away...

Big hint for some people who think their local market has too high a barrier of entry....nothing says you can’t live in one market and invest in another...

If I lived in BC I’d own rentals in Sask or Alberta....

 

[Blockcaver]

I typically buy new trucks and drive them for a decade or longer, paying cash when I buy. Ford usually has employee pricing for everyone in August on this year's model before the release of the new model (this is how it has worked most years, don't know about this year). I've ordered my existing two trucks in June and took August delivery of exactly the trucks spec'd like I wanted, no more and no less options, right color, correct payload for the use, right tires and rims, etc. Good luck!

 

[FLAK]

I'm not paying 70 Grand for a new truck. Just bought a 2016 with 30K miles for half that.

 

[BluMtn]

I just recently bought a new pickup and was offered 0%. But there is a catch to the 0%, you will pay full MSRP or close to it. I went in with my own financing and ended up saving almost $17,000 by not using the 0%. Look for a one year old lease return or something like that, they are usually several thousand dollars cheaper.

 

[Elite]

Sticking to the new vs used part I usually look for 3yr old QUOTE]

Do you pay cash for them? Usually the interest rate is high on used and that is a lot of money to be tied up in a truck


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