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When to bite the bullet and buy a new truck?

Started by KBforester, February 23, 2012, 05:08:09 PM

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Black_Bear

Quote from: snowstorm on February 26, 2012, 09:53:34 AM
a good reason to buy new... depreciation if your self employed and you make any money at all you almost have to buy something or you end up paying more in taxes

aaah, the decisions that come with being self employed. Even in this economy I talked to many self employed people who had to buy something at the end of 2011. I'm not in that boat, but I do get paid the federal mileage rate to help defray costs, including purchase price.

I failed to mention earlier I just bought a 2012 Tundra TRD Double Cab 4WD, mainly for the double cab that fits two car seats. It's my first new truck and have always bought used up to this point. I plan to run my 2003 Tundra until May or so and then start running my 2012. I'm having a hard time giving up my 2003. She's tough.

Brucer

Quote from: snowstorm on February 26, 2012, 09:53:34 AM
a good reason to buy new... depreciation if your self employed and you make any money at all you almost have to buy something or you end up paying more in taxes

A few people have told me that. I worked the numbers. It doesn't add up. I would pay less in taxes but I would pay even more for the truck.

When I calculate the total cash flow I get money out of my pocket and into the vehicle.
Bruce    LT40HDG28 bandsaw
"Complex problems have simple, easy to understand wrong answers."

snowstorm

maybe not in canada but it dose here. if it wasnt worth it then no new equipment would be sold

westyswoods

Ah new is nice, while old can be gold. If one looks long and hard the finds are out there. Depends on what you want as to how easy it will be to find.

I could never justify buying used for a work truck. All the points made in prior post I agree with.

After a long search I finally ran across a 2000 F350 dually about three weeks ago. 102k on it and paid 5750 for it. Very clean body and interior. This will be a project, I took the bed off and will replace with a dump flat bed. Most likely will have to fab my own as plans are to bury a goose neck below the bed with acess door to it. Will present some challenges nothing that can't be worked out.

Westy
Stay Safe and Be Healthy
Westy

Brucer

Quote from: snowstorm on February 27, 2012, 05:55:26 AM
... if it wasnt worth it then no new equipment would be sold

I was commenting on the financial side. I can pay $30,000 for a new truck or $10,000 for a good used truck. For either one I can claim the cost as a business expense (but not all at once).

The new truck would increase my business expense by $30,000 and reduce my income by the same amount. I would pay (very roughly) $6000 less in taxes. Net cost = $24,000.

The used truck would increase my business expense by $10,000 and reduce my income by that amount. Taxes would be $2000. Net cost = $8000.

There isn't a cost advantage to buying new in this case.

Cost isn't the only factor. If I can't find a suitable used truck, then I would have to consider new. If I just want a new truck (and can afford it) then that's what I'd get.

When I'm buying a business truck I have to think about the impression I make on new customers. If the truck is rusted out and falling apart, that makes the customer wonder about my product. If I buy a brand new F350 dually just to pull my mill around, that leaves the customer wondering how much he's contributing to my fancy machine.
Bruce    LT40HDG28 bandsaw
"Complex problems have simple, easy to understand wrong answers."

KBforester

Ok well... I think I'm going to look at some trucks. Hoping to end up with a used one. I'm going to try to refrain from a new one.

Now, what to do with the old one? Trade her in? Sell her private party? Retire her as a "farm truck" just on the property?
Trees are good.

Ironwood

Too many variables to recommend. For me, I buy used, and drive very little with my "bigger trucks" (F-550) and drive alot with my F-350.  I bought a motorcycle for some quick trips into town and into Pittsburgh where I volunteer and attend meetings with folks. A few of my trucks will get the new sheet metal and new engines and parts when needed. I just got this one back from the paint shop today. Not too new, paid for and dependable. Works for me. I even have done a trip to town in the truck with the bike on the back, then when close, drive the bike downtown to meetings, I even parked it once in the "soon to be" dining room of the italian resturant I was working on (told the owner sorry it isnt a bulgati, or ducati ::)) They really got a kick out of that one. It was pretty cold and it is next to impossible to get parking in a BIG truck in the downtown.

I thnk as fuel gets pricier you will see ALOT more scooters and motorcycles. My used 1987 XT600 (my third nearly exact model/year) are going for $1500+ or so, and will easily out run a stock new Honda XR650. About 40 mpg (drivn like I stole it).

Gotta do what works for you and your cash flow.

 

  

  

 


  

 
There is no scarcity of opportunity to make a living at what you love to do, there is only scarcity of resolve to make it happen.- Wayne Dyer

SwampDonkey

My experience being around fellas with used trucks is that they are always sinking $400-700 in repairs and parts a month even if they do it themselves. Might as well make that payment on a  new one and not waste time on the hoist or under the hood every month. Of course no one listens and they keep throwing good money on troubles.  :D Wasted time in the thinning business bytes you both ways. 1) not out there cutting to make money, 2) plus the repairs to pay for. So at least with a new one, your about par for money in your pocket and no headaches of fixing worn out trucks. ;)
"No amount of belief makes something a fact." James Randi

1 Thessalonians 5:21

2020 Polaris Ranger 570 to forward firewood, Husqvarna 555 XT Pro, Stihl FS560 clearing saw and continuously thinning my ground, on the side. Grow them trees. (((o)))

Todd

QuoteI used to own a 1980 GMC full-size half ton diesel. Bought it when it was 3 years old. When the engine started giving me trouble I had it rebuilt. When the body rusted out I had all the sheet metal replaced. When the transmission let me down I had it rebuilt.
Brucer....that reminds me of the guy who claimed his grandfathers hammer had lasted 80 years...he put 5 new handles on it and changed the head once, but that hammer was still working!  :D
My '97 F-250 HD is getting to decision point too...rust is taking over the body and if my seat leans back much farther I won't be able to stay awake while driving it!  But theres no way I can get anything new that can do what it does...think they'd give me a 15 year loan on a new one? ;)
Making somthing idiot-proof only leads to the creation of bigger idiots!

Brucer

It still had the original frame and cab :D.

Before each major repair I checked out the cost of a new one vs. the cost of upgrading plus the gradually increasing maintenance costs. I also tried to make things better with every major repair -- when the body got replaced, I had the body shop coat the entire frame and the insides of the body panels with an anti-corrosion coating.

One of the really, really nice things about that old truck was ... no electronics!
Bruce    LT40HDG28 bandsaw
"Complex problems have simple, easy to understand wrong answers."

Ironwood

You hit the nail on the head, with no electronics. The newer vehicals, say post 2003, have so many systems that it is a NIGHTMARE. Even the medium duty trucks have puter boxes that go, and cost 2-3-4K to replace and ONLY by the dealer as it "needs the codes reset"  what a scam. My buddy does ALOT of repairs on trucks and man does he have the stories.  ::) he is a fleet maint. guy and fixes everyone elses that no one else can fix. IT IS BAD. I think I will keep my "old "trucks thank you very much. I gotta say I have had EXCELLENT luck with repairs on my Fords over the years. Rarely anything major, perhaps a clutch on my old 550, but that is normal. Other than that fuel and oil changes, occasional brakes, or ..... can really think of anything else,...suppose tires. .... no complaints here.

Ironwood
There is no scarcity of opportunity to make a living at what you love to do, there is only scarcity of resolve to make it happen.- Wayne Dyer

SwampDonkey

The guys I'm talking about buy trucks that are worn out and might be worth $2000-$3000 on the book or a lot less and keep poring money into a junk truck. I think a few of them the inspector is looking the other way when he attaches the decal to the windshield. :D :D
"No amount of belief makes something a fact." James Randi

1 Thessalonians 5:21

2020 Polaris Ranger 570 to forward firewood, Husqvarna 555 XT Pro, Stihl FS560 clearing saw and continuously thinning my ground, on the side. Grow them trees. (((o)))

westyswoods

I have a friend who started a Ma and Pa auto maintenance shop about six years ago. We are in rural America where people are struggling. His main customer is the person who can not afford new used, while having to keep junk running. He fixes junk and it is booming.

A good indicator of the what the real economy is out here, not Wall Street, is that his business has increased dramatically over the past couple of years.

The point of the above being there are good used deals out there, I found one after looking for months, problem being they are becoming fewer and fewer. People just need to hang on to there used for economic reasons.

I for one would never buy new, can not justify the cost.

To those who may take the above as some kind of political statement, don't as I am sick of the whole dysfunctional system.
Stay Safe and Be Healthy
Westy

KBforester

I bought a 2009 Toyota Tacoma with 30k on it. Manual, 4cyl, 4wd, access cab. I'm happy with it.
Trees are good.

sprucebunny

MS193, MS192 and an 026  Weeding and Thinning. Gilbert Champion sawmill

KBforester

Trees are good.

SwampDonkey

Nice little woods truck. I would have got one 5 years ago, but they didn't have 4 cyl in the models in Canada. Now they do. I found the 6 hard on gas. The price has also come down a lot. They were 45,000 grand here for a 6 and now they are 34,000 for same truck. My buddy got a brand new one in Idaho for $23,000 back in 2009.
"No amount of belief makes something a fact." James Randi

1 Thessalonians 5:21

2020 Polaris Ranger 570 to forward firewood, Husqvarna 555 XT Pro, Stihl FS560 clearing saw and continuously thinning my ground, on the side. Grow them trees. (((o)))

Bobus2003

Quote from: Woodchuck53 on February 23, 2012, 11:03:16 PM
Evening Caveman. What repairs have you to do on the F-350? What engine do you have? I have one

   also now and need some more info on them. It has the dreaded 6.0 Turbocharged. Thanks Chuck

Do a EGR Delete, ARP Headstuds, and a Oil Cooler at the time of EGR Delete.. That will cure 99% of the 6.0l Problems.. Without you may see blown head-gaskets, leaky oil coolers, and the EGR leaks and the valve sticks. Ford told me not too use Rotella 15-40, use Motorcraft 10-30 (Makes a big differnce in cold weather). If the truck idles alot, you can expect the Turbo vanes to "coke up" and will require cleaning.. Can be done yourself if your handy with a wrench and have a few hours. Keep the fuel filters clean (every other oil change is good, or every 10,000 miles) Any loss in fuel pressure from clogged filter or Gelled up fuel will result in "Dropped" Injectors.. gets spendy quick.. I also learned the hard way to only use Motorcraft filters, NAPA Gold tend to not seal all the way in the oil canister causing the Pressure relief valve to come undone, which results in hard starts & rough idle/operation. Another thing to watch is the STC (Snap-to-Connect) Fittings on the HPOP (High Pressure Oil Pump) Lines, the tend to come undone and leak , causing hard starts, Rough running

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