Really cheaper to run a new truck?

Truck609....

SOOO much truth in that 1200 or less.

 

Well, I think so, but then again everyone's situation is different.

 

I can see getting a $15-20K truck. Driving it till paid off, then investing another $40K in cash and trading up.

Keep doing that and in 10 years, should be able to almost pay cash for a new truck like you did for that first truck.

 

You also have to remember that on top of all the extra taxes and tariffs and anything else they want to charge you, the minute you drive a new truck off the lot it isn't worth what is was yesterday. Depreciation on a new truck is brutal.

 

Buying a new truck, especially starting out, is a bad idea. Those big payments will go on whether the truck is working or not. Buying new you will be required to buy collision insurance on the truck. The premium is usually 3-5% of the stated value of the equipment. That cost difference can be considerable from a $20,000 truck and a $150,000 truck. Unless you want to pay for collision on the older truck, you can save the money. Collision on the $20,000 truck will run $800/year at 4%. The same insurance on a $150,000 truck will cost you $6,000 for the year. That is a truck payment for an older truck. You will breakdown, whether you are driving a new or used truck. Even if you have a warranty, repairs are not always covered under the warranty. You could be required to pay for the repairs and try to get reimbursed by your dealer. You may or may not get much better fuel economy with a new truck than one that is older. The driver mostly determines the mpg. If you keep your speed down you can get much better fuel mileage.

With an older truck you will have low payments. A new truck will usually result in a $2,400+ payment. If you have an older truck with a $800 payment you can save $1,600/month for maintenance. If you want to take a few days off, it will be much easier in an older truck. If you keep up the maintenance your upkeep costs will be much less than if you let things go. It is a myth that you will spend a lot more to maintain an older truck than one that is new. I have owned a number of older trucks and have spent many thousands of dollars less on them than I would with a new truck. I remember one year that I spent $11,000 on one truck. That was unusual and included a new transmission. I would have spent at least twice that on new truck payments alone. By the way, that truck was free and clear. No payments. Tires, oil changes, belts, lights, etc., will cost the same on most trucks. Once the repairs are made on the older truck you are done. Payments go on along with the repairs.

If you want to buy a new truck, then start with an older truck and save the difference between your payment and that of a new truck. I have known of some who will trade up every couple of years until they get into the truck that they want. Let your business pay for the equipment without sticking your neck out. The economy is still soft. I expect to see another downturn. If you have cheap truck payments then you should be able to weather a down economy. If you have big payments then you need to run hard all the time, just to stay ahead of the game. If the economy takes another dive, you can survive with a cheap payment. If you have a big payment you may not survive.

Another factor to consider is depreciation. A new truck will depreciate at least 20-30% the first year. That is not the case with an older truck. Most of the depreciation has been taken with the older truck. You can drive it for a year or two and get most of your investment back with an older truck. You could buy a nice used truck for cash for what you will lose on depreciation with a new truck.

The idea is to make money. Don't believe everything that you hear when it comes to which truck to purchase or whether to buy new or used. Do your own research. It may sound great to say that you own a new truck, but the bottom line is profit. You will usually clear more money with a good used truck than with a new truck.

 

one guy, 2001 pete 379, getting 5.5ish to 6.

I am in an 09 Cascadia. History has it at 5.8 Mpg with a DD15 and 10 speed. Lately I have gotten that up to around 6.4ish mpg. Still seeing some at 5.8 but common to see 6.6 to 6.8 mpg. Didn't start seeing that though till I went to add some lucas injector cleaner to the truck. I had one of the trucks on the lower end of the fuel mileage chart.

Some of our 10 and newer cascadia's are getting 7.2-7.4 mpg.

For 25 cascadia's, our fleet avg is 6.3 mpg.

 

Last week at the Flying J in Kansas City I met a young driver who had just bought a 1970's model Kenworth cabover. (The truck I want).

Steel spring suspension, short wheelbase, no extras- mechanical cummins and I didn't ask, but probably a straight-seven speed. (No upper and lower range, just seven gears).

He said he paid $7,000.00 for it and another $1,500.00 to have someone drive it to him. A few dollars in minor repairs and it's hauling freight. A Florida truck, no rust on it but two coats of paint on the frame. The kit to rebuild a big cam 400 is around $2,600.00. My guess is that he's getting around six mpg's if he's careful.

I say he's a winner and doing things smart. Wish I had found that old cabover and got it first, but he's going to come out way ahead in the end.

Oh- and don't fall for that crap about new trucks saving money- I tried it more than once and proved that it's not true. The "new truck" that I'm in now is junk- they don't build 'em like they used to- and never will again.

 

I paid $7,300 for my 97 LTL and it makes just as much money as the $50,000+ rigs that i haul with everyday.