Buying a new truck or a used one?

[BC_CO-OP]

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

Agreed I made the same mistake a year and a half ago.

 

[pods8 (Rugged Stitching)]

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

Glancing at one of my banks they're posting 3.5% for a used loan right now, doesn't seem high in my mind, esp. to hold back cash in present times. I just bought a house and only put 5% down rather than more to keep cash back (and also invested some during this down market) rather than paying down principle in the short term with rates so low.

But to answer the direct question, it has varied, I try to buy ~3yr old when replacing as I think that's the best bang for the buck but its not like I do it every couple years, I drive them a good while. My truck is a 2007, our van is a 2012.

My 2007 I bought in 2009 for a $15k differential cost after trade in which I financed, rate at the time was 5.5% BUT keep in mind online savings accounts were delivering 3.5+% at the time, mortgage rates were in the 4-6% range, etc. so comparatively the interest was still cheap (<2% over what a savings account could deliver).

The way we run our finances once we got to that position is the vehicle payment was a few hundred a month (not $500+), once it was paid off we kept most of that money going to a vehicle fund to pay for future repairs/tires/etc. and downpayments. When we bought the van we paid the differential cost after trade in in cash.

If I was replacing my truck today (and realistically will likely need to within a couple years) I'd likely finance the difference initially if rates are still something like 3.5%. Nothing saying can't pay it down faster but as you said its alot of money to tie up. But I also don't like having high payments due monthly either (mortgage is bad enough).

 

[Marble]

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

That's kind of the point I was trying to make earlier. I dont know if I'll buy another new truck ever. But I will buy a 3 to 5 year old truck for half or more of what it originally sold for.

I save money each month to replace the truck eventually and get to put more into retirement.

 

[USMC-40]

FYI - for most brands you exchange the 0% loan for rebates. I’m in that business - both Ram and Chevy/GMC that’s the case. Sometimes it can be 5-6k worth of rebates.

 

[N2TRKYS]

Buying new is usually always the best deal for me. I'd be hard pressed to ever buy used again.

 

[dtrkyman]

I have seen some crazy prices for used vehicles lately. Last new one I bought I bought it after the next years models came out, lots of discount and I paid cash for it.

The last person you want to see at the dealership is the finance manager!

 

[SWOHTR]

If it’s a 2012 GM with the 5.3 I would get rid of it, that engine will give you fits if it hasn’t already, possibly requiring an engine changeout.

 

[pods8 (Rugged Stitching)]

Buying new is usually always the best deal for me. I'd be hard pressed to ever buy used again.

What are the circumstances out of true curiosity, business write off?

 

[TSAMP]

So many people say don't buy new. I don't agree. I buy new trucks, but they are bottom trim option trucks, and it doesnt make sense to.buy used financially in that case. I buy them new and i let the dealer do all sched maintenance which prolongs my warranty to this day. My current 14 f150 has 110k but still has significant warranty coverage (which besides a water pump at 62k) i havent needed. I plan to keep it a couple.more years and buy the next one with cash again. The money waste and depreciation come when you get all those options. If u buy the bottom.tier truck and pay it off in 3 or 4 years you won't have a payment by the time the dealer maintenance starts up.

 

[hobbes]

You mean a 2012 isn't a new truck?

I just bought a newer used truck than what I've been driving. It feels like I'm driving a new truck........I bought a 2012 Tundra with 147,000 miles. I upgraded from an 06 Tacoma with 229,000 that I've been driving since 08. I suppose it's all relative. I'm keeping the 06 and planning to make sure it sees over 300,000.

 

[bowieknife50]

Just don’t buy a truck from a hound hunter


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[Nutsknr]

Depreciation only matters if you sell it in that first few years window.

Holding one for a decade makes that initial depreciation meaningless.

Also depends on what your looking at?

Nissan makes tough as nails trucks, but some of their creature comforts aren’t as cutting edge, and they are more desperate to sell with their current situation. Real good value.

My “new” truck is an 04 Cummins. It blew the tranny headed camping with the fam last memorial.
$6k, plus a lost trip with the kids. Pretty steep cost to not have a payment. You only get so many of those trips in your life, I’m looking as well

 

[pods8 (Rugged Stitching)]

Holding one for a decade makes that initial depreciation meaningless.

Disagree, you still have to adsorb that steep loss that occurs in the first couple years. Which with new trucks in the 60s and 3yrs old used <40s will still cost you in most cases at least $1000/yr more over a decade depreciation vs buying a 3yrs old and if using the same endpoint keep it for only 7yrs. If that $1000+/yr for a decade is worth those first 3yrs in the seat so be it. I'd rather have that budget for hunts or such.

 

[KBC]

I forgot to mention in my earlier post, if you buy new, get last years model. We got a 2018 at the beginning of 2019. it was brand new but had about 10k off the price and it was still 0% to finance it.

 

[N2TRKYS]

What are the circumstances out of true curiosity, business write off?

Not a business write off. Used vehicles have new vehicle prices around here. I can get a new one for the same price or cheaper in some cases than the used ones.

 

[Opah]

Unless you are having issues with your present truck I would Keep it, 200,000.00 is not a huge amount of mileage for a well maintained truck My 96 S10/ZR2 had over 300,000.00 on it when I came across a free rebuilt 4.3. It is my Goat, take me anywhere truck, My 05 Yukon is coming up on 200,00.00 and its running great.
I never liked buying someones problem vehicle, figure if it was running great why would they sell it
Invest a little bit into what you have, add an accessory you have been looking at and put what you would be paying in payments into a IRA account.

 

[Jimss]

It may take a while to find but you can likely get a great deal on a nearly new truck and save yourself a pile of cash. Not only will the sticker price be lower but you also will pay lower taxes each year.

I bought a loaded 2008 Tundra with topper with only 23,000 miles 3 years ago for only $25,000! An older lady owned it and it mostly sat it a garage. The sticker on it new was $41,000. It took 2 years of hard searching on Craigslist to come up with that deal. If you have patience and are quick on the draw you may luck out!

 

[Elite]

Unless you are having issues with your present truck I would Keep it, 200,000.00 is not a huge amount of mileage for a well maintained truck My 96 S10/ZR2 had over 300,000.00 on it when I came across a free rebuilt 4.3. It is my Goat, take me anywhere truck, My 05 Yukon is coming up on 200,00.00 and its running great.
I never liked buying someones problem vehicle, figure if it was running great why would they sell it
Invest a little bit into what you have, add an accessory you have been looking at and put what you would be paying in payments into a IRA account.

The truck does run great and I haven’t had any major repairs yet. But at what point to you keep driving them till? A truck with 300000km is very hard to sell here and will have rust by then around here. My o my thinking was use the money I have from the truck sale and get into a newer truck with a lot less km while it’s still worth something


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[N2TRKYS]

It may take a while to find but you can likely get a great deal on a nearly new truck and save yourself a pile of cash. Not only will the sticker price be lower but you also will pay lower taxes each year.

I bought a loaded 2008 Tundra with topper with only 23,000 miles 3 years ago for only $25,000! An older lady owned it and it mostly sat it a garage. The sticker on it new was $41,000. It took 2 years of hard searching on Craigslist to come up with that deal. If you have patience and are quick on the draw you may luck out!

You paid $25,000 for a 9 year old truck?

 

[Jimss]

You bet I paid $25 for a Tundra with only 23,000 miles. It pretty much looked like a new truck until I started hitting the hills with it. Toyotas are known to go 200,000+ miles and keep ticking! I think I got a great deal!