Age old question: New truck vs used truck?

Something else to look at is even brand new trucks have the habit of needing repairs sometimes. Even though any repairs should be covered under warranty, that doesn't pay for all your lost time while the truck sits at the dealer. This can be huge if you have a big payment and a lot of other bills to pay.

I'm of the opinion, if you want to go old, you've got to go really old. Like pre-emissions old. A later model used truck right out of warranty can be a gigantic money hole. I'd say these trucks have a pretty good potential of being more expensive than a new truck.

I've got a project in the back of my mind that I'd like to do if I can find the right truck. I'd like to find a mid 1970s Brockway 761 with a decent body. Put a 3406b or N14, 18 speed, and a late model air ride cutoff in the back. Go though the truck front to back and make as good as new. Add a fresh paint job and body work, and ride in style.

 

It's hard to play the game the megas play because they get new trucks much cheaper than you or I. I've been told that they get new trucks so cheap that they can run them for 3 years and sell them for almost what they paid for them. I don't know how true that is, but you know that they are buying trucks a lot cheaper that anybody else when they order 100s or 1,000s at a time. It's for sure they don't have to take as big of hit trading at 3 years than any smaller operator would have to take.

 

Yes I know, but obviously a new truck costs much more therefore more to depreciate. What do you mean by easy enough to find? I deduct everything that’s legal to deduct but I’m not going to make up stuff or deduct personal things that could come back to bite me during an audit. My accountant tries to keep me mostly in the 15% (or whatever it is now) bracket but no way I could do this without buying significant amounts of equipment each year.

It was just an observation for those that are fairly profitable. If you don’t make much past paying yourself then by all means...

 

Nice. That’s how it’s done right there ladies and gents.

 

It’s hard to tell the exact costs, given all the hypotheticals, I agree though, if keeping an old Truck, Unless you do as much of your own work as possible, it can be very costly. It seems to Me, Trading 3 -4 yrs. is best, if done right, that is, the old fashioned way. Putting money down, and paying extra when possible, saving on repair bills, and applying a portion of unused escroll fund to each purchase.Takes a lot of Disipline and Commitment.By the time the 3rd new Truck is purchased, all the discipline and hard work really starts to pay off. I’ve never been able to do it myself.Always bought Used, and compromised on things.Buying a 3-4 yr old Truck with 400k -500k, can easily be just as costly as a new Truck, if not more over 3-4 yrs. Then add depreciation and residual value differences. On the other hand, keeping a Truck you like, and spending $$$ to keep it in good shape,will also pay off, only if You keep it long enough. I think either of the extremes is best overall.

 

Well one truck or a couple truck fleets don't seem to come out ahead when it comes to this issue. New is preferred based on the idea that it costs less to operate avoiding breakdowns but it always is a crap shoot. I've had a few trucks were new and such a PIA that it was almost impossible to keep them on the road.

I still have a near brand new truck sitting in my yard ... can't do much with it so it just sits.

The one thing that seems not to be mentioned is how you run a maintenance program for your single truck - fix it when it breaks seems to be the norm.

I have said this before, a bunch of us little fleet owners amortized components for our maintenance program to ensure up-time of the truck, this means not thinking fix it when it breaks but to actually fix it before it breaks. Tires are one such item that has a specific life and are replaced at a specific time. Belts, hoses and even alternators are all on the list. The list is long and it has a larger up front costs to it but dependability is what I strive for out of the truck.

 

Well, it's how I've done it. There's a whole lotta folk on this forum who disagree with how I chose to do it, but frankly, it was the best way for ME

 

I drive a 2013 Freightliner Cascadia with a DD 15 engine. My repair cost has been as under

2013 - $5,916
2014- $ 12,000
2015- $ 34,915
2016- $ 22,070
2017- $ 39,355 ( one box and injectors replaced here)
2018- $ $ 22,376
2019 (so far) - $ 40,000 and counting ( Transmission gone + countless problems with ATD)
All money in Canadian Dollars before tax. Phone bills and Hotels included

 

Gotta love those automatics

 

I don't like borrowing money and old trucks that are already depreciated fully is where the value is anyway.