Ok buying a NEW truck questions.

Discussion in 'Ask An Owner Operator' started by Computertrucker, Dec 18, 2013.

  1. Computertrucker

    Computertrucker Light Load Member

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    Hello fellow owner operators. Here's my issue.

    I'm a current owner operator. I started off as a lease operator. Did that for a few years. Then back in 09 when the economy was in the toilet I practically stole my current truck which is an 06 KW T2000 with only 1500.00 down no one could buy anything that year on credit hardly, so truck prices had fallen really low. I paid 34,900.00 for a 3 year old truck. Now granted I had a 798 credit score, so that really opened up doors for me, even as a first time truck buyer....found out then that leases did not count towards a truck purchase.

    So onto now. I have been eyeing new trucks for a few months now. And decided to call up GE Capital and see if I could get a Pre Approval. I was skeptical new trucks just cost so much. I figured I would need a huge down payment. Which I could always just use my truck as a trade. Well to my suprise they approved me with 100% financing (once again it pays to have good credit.) . I figure if I sell my truck I can pay off my 2 cars which would cut 1025.00 out of my bills which would be better than using it as a trade and only knocking 200 to 300 a month off my truck payment.

    So here is my question. I've never purchased a brand new truck, and I've pretty much been given a blank check to work with. Now I have figured what I want my payments to be around, and how much I need to stay around for that to happen. But in negotiating a new truck purchase. What's a fair price reduction to ask for? I also realize I have to deal with FET and sales tax. I mean if I'm looking at 150k sticker price. Would I be laughed out of the dealer by saying I want to be out the door at that price? When I realize there is probably 25k in taxes due to FET and sales tax.

    For the guys and gals who have bought NEW trucks, how much have you seen a dealership reduce their price by on such a high ticket item?

    Right now I have an international dealership running 2 spec builds for me on a lonestar. I expect to hear back from from the salesman tomorrow. I am also planning on speaking to a Volvo rep in the morning. Now that I've gotten this approval I actually feel a bit overwhelmed.
     
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  3. baha

    baha Road Train Member

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    to recapture the write/off you got on t2000 will come into play. trade in might be easy on $.
     
  4. Computertrucker

    Computertrucker Light Load Member

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    I don't quite follow you... Can you please clarify?
     
  5. Saddletramp1200

    Saddletramp1200 Road Train Member

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    The window. Use it for a weekend. It's a used tractor. Trust me. If I can, I will.
     
  6. Marlin46

    Marlin46 Medium Load Member

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    Keep in mind depending on what state you are in you can file for the Sales Tax Exemption Certificate if you are in the transportation business w/ authority and insurance. You have to submit reports saying what month you used it in, etc...but it would be worth doing if I was dropping that kind of cash. GA is where I have the experience but I would think a lot of states do it.
     
  7. nawarra1

    nawarra1 Light Load Member

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    I ordered brand new cascadia evolution with new automatic manual transmission, factory installed apu and full of options for 142 grands. Including fet. There is no sales tax in NY on trucks.

     
  8. Richter

    Richter Road Train Member

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    I've never bought new, but i like to finish all my negotiation and then walk out. The sales man starts crying do tot he work they have put into it and will offer you anything to come back. Never by the truck the first time you see it. Let them know your serios, but act like your just kicking tires. Make them work for your business and then get the little extra off when you walk out and say...na, to much. Be unpredictable and remember you cant get what you don't ask for. The sky (or floor) is the limit on negotiation. Another tactic I like is to work with 2 or 3 dealers at a time and keep telling them what the other is offering to get them to fight for my business. I recently got a used truck listed at 36,000 for 24,500. I found 3 used trucks i like that were similar miles and specs and basically negotiated with a ll 3. When I got the final truck to 26,000, I told um changed my mind and anything over 24,000 would be to big a risk and left. The next day they offered 24,500.
     
    milskired, 04 LowMax and 281ric Thank this.
  9. Hammer166

    Hammer166 Crusty Information Officer

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    The depreciation you took on the KW. There are rules on recapturing (by the govt) some of that when you sell the truck. I don't remember the rules off the top of my head.
     
  10. 04 LowMax

    04 LowMax Medium Load Member

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    Richter is absolutely right. And, with pre-approved financing, you are a step further up the negotiating ladder. However, my opinion on new trucks these days I'm afraid is a bit skeptical, due to all the problems new ones have, a sensor leaves you stranded 250 miles from nowhere and you have to get towed. Also, suppose you buy a new one for, lets say 125,000, by the time you get to the end of the block with it, it's depreciated down to maybe 110,000 or less. After 2 years it might be worth 80,000. Now, if you put 45,000 into your kw, it should be in premium condition. And you'll have a truck that you know. I have had brand new trucks, and I have bought used. I understand the magic of a brand new unit, the smell, the feel, etc. There's nothing like it. Just be prepared that it's a really poor investment from a business perspective unless you plan to keep it for the long haul. Those new truck payments do also get rather tiring after a while, especially when you reach the point after a few years when you have both payments and repairs.
    Pretty much takes the magic out of it then. Anyway, just wanted to share these ideas with you. I wish this forum had been around 15 years ago, cause it's really great to get helpful feedback on these kinds of things as well as mechanical, and all the other topics on here. Good luck with whatever you decide to do.




    i
     
  11. Computertrucker

    Computertrucker Light Load Member

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    I want to thank everyone for all the helpful comments and suggestions. As for buying new ya.. I am excited and nervous all at the same time. This last year I have sunk as much money or more into repairs in this truck than I would have a new truck payment. It's also time to start looking at a in frame/rebuild if I keep it which doesn't fix all the components around the engine.

    Also getting finance to do a complete rebuild including engine, rear ends and most of the major components. Where do you do that? I actually spoke to GE Capital about doing that as an option before my credit was ran. They said my truck would not have the equity to back the loan do to the age.
     
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