Newer Truck vs. Low Mileage Old Truck

[Dos Perros]

I will NEVER pay $30k for any vehicle. I see all the new vehicles on the road, and I always wonder how much freaking money does everyone make? Is the average income $200k? If it's not, people have lost their minds.

This is the correct answer.

 

[EdP]

I'm a retired diesel mechanic and would not own a diesel truck newer than 2007. I put 500k on an 06 Dodge and never had problems until I over heated it at 480k miles replaced the head gasket and ground the valves and carried on. I've logged over 3/4 of a million miles with the 5.9 Cummins and wouldn't buy an emissions engine. Just my 2 cent. It's worth what you paid for it.

I guess I was lucky because my last new truck is a 2007 Dodge 2500 with its 5.9 Cummins that I love. 2007 was the transition year from 5.9 to 6.7 and I got one of the early ones off the lot. The truck just went over 200K and I will keep it as long as it remains reliable. Not much good is being said about the new trucks so I am concerned about my options in the future. These days my truck spends most of its time in the garage and a 2017 jeep Wrangler 2 dr is my runabout vehicle.

 

[darcytribe]

How many times did you put your truck in 4wd last year? Considering the high depreciation, rising maintenance costs due to onboard electronics, higher insurance, higher fuel costs and higher property taxes associated with a late model truck, you might be better off renting a 4wd pickup when you need it and driving a cost effective sedan the rest of the year. A late model truck costs about $1/mile to drive, whereas a used Camry or similar will cost about $0.30/mile. The average vehicle owner drives 13,500 miles/year, which would be $13,500/yr for a new truck and $4050/yr for a used Camry. In that scenario, the Camry driver would save $9450. If he/she spent $2500 throughout the year renting 4wd vehicles, that would still leave an extra $6950 in their budget to go hunting. Even if I'm half wrong (I'm not), that person could save $3475/year. I'm not saying this is the right option for your specific situation, but a lot of pickup truck owners fail to properly calculate the total cost of operating their vehicles. Money is the sinew of war, the more you can put in your budget, the more options you'll have. Good luck out there this fall!

This thread is an interesting thought experiment and though I’ve contemplated it a fair bit in the past I hadn’t considered this angle much. I’ve read that a fair number of people out west drive economical FWD sedans with good snow tires in the winter and do just fine. My actual need for four wheel drive is fairly limited to hunting season. Gonna mind-chew on this above thought some more.

The only new vehicle I’ve ever purchased was back in 85. Since then I’ve been ultra-frugal with vehicles. I’ve done well at buying from private owners who have been religious with maintaining them. If you buy well circulated models the used parts market is usually pretty robust, even for 30 year old vehicles.

I always have a bit of anxiety taking the old 96 Tacoma on a long road trip out west but she hasn’t failed me yet after 10 seasons of running around the mountains, even with 350,000 plus miles on her.

 

[Yoder]

Once I was able to afford a third vehicle, I always owned a truck. The last one I owned, turned into a pile of rust about 8 years ago. After that I realized how much extra money I was wasting on something I barely used and really didn't need. I bought a trailer hitch for my car and a 5x8 utility trailer. Instead of a loan payment, insurance and maintenance costs, I paid $1k for a trailer. The only things I'm missing out on are ground clearance and 4wd. I don't have anything I need to tow so my car is fine. It's actually way easier loading a trailer than a truck anyway. Just something to consider before getting tied into a $800/month payment for 6 years.

 

[Northpark]

I will NEVER pay $30k for any vehicle. I see all the new vehicles on the road, and I always wonder how much freaking money does everyone make? Is the average income $200k? If it's not, people have lost their minds.

People don’t make $200k/ year. But for those of us who budget appropriately (dont carry debt) you can pay off a truck pretty quick. I also have been putting away $400/ month for the last several years for a vehicle specifically so it’s easy to throw down a sizable down payment then knock the rest out over the next year or two with Overtime checks. My point is you can do it without getting yourself in a hole that you can’t get out of.

Though I do suspect most people are in way over their heads when I see the $80k pickup pulling the $100k boat to the lake on the weekend and there is literally hundreds of people all doing that.

 

[Yoder]

People don’t make $200k/ year. But for those of us who budget appropriately (dont carry debt) you can pay off a truck pretty quick. I also have been putting away $400/ month for the last several years for a vehicle specifically so it’s easy to throw down a sizable down payment then knock the rest out over the next year or two with Overtime checks. My point is you can do it without getting yourself in a hole that you can’t get out of.

Though I do suspect most people are in way over their heads when I see the $80k pickup pulling the $100k boat to the lake on the weekend and there is literally hundreds of people all doing that.

My house is almost paid off, I have no car payment or credit card debt. I could afford a $80k truck. It's just not something I value that much. The way you did it makes a lot of sense. If you save up and have something to trade, you wouldn't be carrying too much of a payment. I just can't wrap my mind around paying that much for a vehicle. I bought a 2200 sq ft house in VA on 3 acres for $105k in 2000. Now that's a truck? Even now I can buy a 1200 sq ft house in my area on 1/3 acre for $250k. Prices of vehicles are not real. There is no way in hell they cost that much or are worth anywhere near that. I don't think it's sustainable. I think we are going to see a crash, just like the housing market in 2007-2008 but this time it will be vehicles.

 

[CorbLand]

My house is almost paid off, I have no car payment or credit card debt. I could afford a $80k truck. It's just not something I value that much. The way you did it makes a lot of sense. If you save up and have something to trade, you wouldn't be carrying too much of a payment. I just can't wrap my mind around paying that much for a vehicle. I bought a 2200 sq ft house in VA on 3 acres for $105k in 2000. Now that's a truck? Even now I can buy a 1200 sq ft house in my area on 1/3 acre for $250k. Prices of vehicles are not real. There is no way in hell they cost that much or are worth anywhere near that. I don't think it's sustainable. I think we are going to see a crash, just like the housing market in 2007-2008 but this time it will be vehicles.

Tell that housing price to me that was 9 when you bought and I would say "you mean you bought 3 acres and a house for less than half what my .4 acre cost?"

Whether we like it or not, we live in an economy where things generally just get more and more expensive. Its not that things are worth more, its that what your using to buy it is worth less. Nearly 50% of the money in circulation today was printed in the last 15 years...we are just now starting to feel the pain of doing that. There is just flat too much money chasing too few goods.

There is always a crash brewing, we generally experience one every 10 or so years and consumer debt could be the catalyst of the next one but the question is when and to what level? How long does one wait for it to happen?

 

[CorbLand]

People don’t make $200k/ year. But for those of us who budget appropriately (dont carry debt) you can pay off a truck pretty quick. I also have been putting away $400/ month for the last several years for a vehicle specifically so it’s easy to throw down a sizable down payment then knock the rest out over the next year or two with Overtime checks. My point is you can do it without getting yourself in a hole that you can’t get out of.

Though I do suspect most people are in way over their heads when I see the $80k pickup pulling the $100k boat to the lake on the weekend and there is literally hundreds of people all doing that.

We did the same thing. Saved some money, got a check from State Farm for my old pickup and financed about 10K of my used Tacoma. I will have the 10K paid off in less than 18 months. I dont make anywhere close to 200K a year.

 

[YMR]

If you have time just keep looking. For me I would be looking for about a 10 year old truck with under 100k miles. They can be found in the $20k range and have most of the new bells and whistles. I can’t wrap my head around the new truck prices.

 

[bucksnbirds]

In a 2010 ram 2500 cummins and love it. 225,000 miles and wouldn't trade it for a new one. As long as you know what to look for, go with an older model. Love being able to work on my own truck without having to plug it into a code reader and dealing with sophisticated electronics. Parts are also cheap

 

[Idaho4x4Bronco]

My house is almost paid off, I have no car payment or credit card debt. I could afford a $80k truck. It's just not something I value that much. The way you did it makes a lot of sense. If you save up and have something to trade, you wouldn't be carrying too much of a payment. I just can't wrap my mind around paying that much for a vehicle. I bought a 2200 sq ft house in VA on 3 acres for $105k in 2000. Now that's a truck? Even now I can buy a 1200 sq ft house in my area on 1/3 acre for $250k. Prices of vehicles are not real. There is no way in hell they cost that much or are worth anywhere near that. I don't think it's sustainable. I think we are going to see a crash, just like the housing market in 2007-2008 but this time it will be vehicles.

In 2 posts you went from 30k to 80k in regards to a vehicle purchase. 30k isn't really that much if done right, 80k is silly though. Ifnyou're paying 800/month (as you mentioned) for a 30k rig, you have made very poor decisions somewhere along the way.

You have to weigh your needs and the value of your time, then count in the risks. I personally didn't want a nickle dime vehicle and I didn't want the risk (higher risk, anyway) of my truck ruining the limited amount of time I have to spend outdoors, I feel a 10ish year old rig properly cared for has a much better chance of not causing issues during hunting trips.

The OP didn't really say if he even needed a truck, he simply said he had a 05 chevy truck. That could be a 2wd half time or a fully loaded Duramax, we don't know. He didn't really give nearly enough info for anyone here to make a reasonable reply directed at him. No yearly mileage, towing, terrian he's hunting, ect.

Food for thought.

 

[bpeay4]

Lot of different opinions shared here but overall I think the general consensus is that these new trucks just aren't worth the price tag dealerships are asking for them. Did some shopping around in my area and I am realistically looking at $30K for a 6-10 year old truck with under 100K miles. A rough estimate on interest rates with a 60 month loan equates to about $500 a month.

My 20 year old truck keeps looking better and better the more I truck shop.

I am also considering a "work truck" model. I know the resale is not great but I really don't plan to part ways with my new ride until I absolutely need to.

 

[Jason Snyder]

The best option if you don’t need to get something different is drive the one that is paid off. If for some reason you have to replace a vehicle, it’s not a cut and dried decision.

We’ve bought plenty of used vehicles over the years. Last year we bought a brand new RAV4 because the price difference between it and 4-6 year old vehicles with 60-100k miles wasn’t that big. It’s probably the last car we’ll need to buy.

Unless I can find a smoking deal on low miles used pickup in 5 years, there’s a decent chance we’ll buy a new pickup as well. Part of that depends on if the reliability of the TTV6 Tundra improves. If not I’ll find a 2017-2021 instead.

 

[TrackerG]

My current rig is nearing 300k miles and I will likely be in the market for a new truck in the near future. Truck prices are outrageous right now and I can't rap my mind around paying $30-40k for a 5-10 yr old truck with 60-100k miles.

I'm seeing 20 yr old trucks with 100k miles for $10-15k and it's very tempting. My current truck is an 05 Chevy and has everything I need and serves me well but unfortunately they don't last forever.

I will likely not attempt to resell my new truck in the future and plan to run it into the ground so resell value isn't much of a concern.

Someone convince me that spending over double for a truck that is 15 years newer is a better idea than buying an old truck with identical miles.

I found an 01 Tundra 4x4 with low miles (which is super rare) and very happy I went that route.

Runs great, it will go anywhere you point it with good tires and a few mods. And it’s easy to work on

 

[Orlando]

I've driven rebuilders mostly all my life. The last truck was a 2000 F250 I drove for 20 years. Decided I wanted a new truck as it would likely be my last one and ordered a 2023 F350. Had it for 15 months and put 4,400 miles on it. So, probably will be my last truck. It was waaay too much money and is just an XLT. I heard a discussion about farm ground being too expensive. Someone said no one ever regretted buying farm ground they had paid off no matter what they paid for it. There's something about owning your own piece of dirt. Not sure if that truly applies to trucks. But the truck sitting in the shop having made the last payment feels pretty good.

 

[RockSlip]

I went from mid nineties Chevy truck to a 2016 f150. Rides much better, has more airbags and there are many many parts available and I can get motorcraft parts right from the dealer still, not that I have to do much work on it anyway.

 

[Orlando]

I went from mid nineties Chevy truck to a 2016 f150. Rides much better, has more airbags and there are many many parts available and I can get motorcraft parts right from the dealer still, not that I have to do much work on it anyway.

My wife drives a 2016 F150 2.7l. 95k on the clock. Pulled our tritoon probably a couple thousand miles and never wanted for more power. Plus, acceleration is crazy good. Only hiccup has been the oil pan leak, which I hope they have fixed for good. Great truck.

 

[Northpark]

My house is almost paid off, I have no car payment or credit card debt. I could afford a $80k truck. It's just not something I value that much. The way you did it makes a lot of sense. If you save up and have something to trade, you wouldn't be carrying too much of a payment. I just can't wrap my mind around paying that much for a vehicle. I bought a 2200 sq ft house in VA on 3 acres for $105k in 2000. Now that's a truck? Even now I can buy a 1200 sq ft house in my area on 1/3 acre for $250k. Prices of vehicles are not real. There is no way in hell they cost that much or are worth anywhere near that. I don't think it's sustainable. I think we are going to see a crash, just like the housing market in 2007-2008 but this time it will be vehicles.

Ya that’s my thought on vehicles for the most part as well. I do live in AZ though so a house is generally gonna cost you $250k on the very low end for a 1950s built 1200sqft home that needs work. A newer 1500sqft 3 bed 2 bath will go in the $350k plus range pretty quick. It’s all expensive and it all might just pop. Or it might not. Only time will tell.

 

[KenLee]

Ya that’s my thought on vehicles for the most part as well. I do live in AZ though so a house is generally gonna cost you $250k on the very low end for a 1950s built 1200sqft home that needs work. A newer 1500sqft 3 bed 2 bath will go in the $350k plus range pretty quick. It’s all expensive and it all might just pop. Or it might not. Only time will tell.

Housing prices have to drop soon.
Doubled in Upstate SC in last 5 years

 

[HuntHarder]

I just bought a new pickup, So I am little biased. They are really expensive and it took me about a year to talk myself into it. I am really happy with my new truck, the ride is better, the fuel mileage is over double my 2014, but there are a lot of things to go wrong imo. So much tech in this truck that I know it will eventually need some time at the dealer. Vehicle prices are starting to drop and inventory is starting to stack up. A little digging and you will find parking lots leased by dealers, holding excess stock. There has even been a few car makers repo'ing new vehicles from dealers. Another 6 months and I am sure you can save a few more k$