Finance vs paying cash?

Discussion in 'Ask An Owner Operator' started by magellan, Feb 17, 2016.

  1. magellan

    magellan Light Load Member

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    I am finally in the market for an additional truck (currently doing a lease purchase).
    I want to get some opinions from you all.

    Let's say you saved up a maximum amount of $20k to spend on the truck alone. Would you find an older truck around the $10k -15k mark or would you pay $5k-$10k down and have extra for expenses, repairs, etc? I know any purchase can be a risk and anything can happen. I have of course been spoiled by the brand new trucks from one of the large companies and it sure is nice having that 5 year warranty, but all good things must come to an end. Time to raise those sleeves and get on the grind. I am just unsure of the best option. Even if I did go the financing route I would not be looking at a vehicle over $35-40k. Would that buy me a more dependable truck starting out? I guess there is no way of telling. I am leaning towards finding one to pay cash for and just having some extra money in reserve to take care of the issues as they come. I just fear the stories that I read where it is problem after problem after problem. What would you guys do? I am looking at pre ear, I really want the best mpg possible, comfort in a Big 780 has been nice, but I can do without.

    Throw some suggestions out there if you guys don't mind.
     
  2. sawmill

    sawmill Road Train Member

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    I'd say it all depends on how hard you want to run and/or how steady your work is. I choose to run an older truck and do most of my own work on it. If I want to come home and not go back out for three weeks I don't have any truck payment hanging over my head. $10-15K isn't going to get you much of a truck, you'll likely need that much or more to make a truck that cheap become one you can rely on.

    I've also had new trucks as a company driver, but it seems like when I had to consider that payment it was pretty easy to choose the older paid for truck. Warranty would be nice, but if you're not in a burning rush you could find something in good shape for the right price. FWIW the truck I have started out as a $2500 non-running truck and we spent $13K getting it running and another $15K fixing it to my liking. It's not new or fancy but I trust it to help me make money.
     
  3. rickybobby

    rickybobby Road Train Member

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    If you want to build some business credit. I would put half down and finance the rest. Having business credit is important in the business. Some may disagree with me. In 2010 I bought a 06 9400 for 23k. I finance it for 3 years. i was building credit and I also had a $767 monthly payment. I had purchase a warranty for 2k.
     
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  4. ttyson

    ttyson Medium Load Member

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    Cash is king, when you finance you pay more..If you cant buy a brand new truck with cash, your not ready..
     
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  5. rickybobby

    rickybobby Road Train Member

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  6. DUNE-T

    DUNE-T Road Train Member

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    Lol you are crazy, who the hell spends 150k cash on truck
     
  7. Lone Ranger 13

    Lone Ranger 13 Road Train Member

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    I spent $84,900 cash for a new truck in 1998.
    I traded in 2003 for a $106,500 truck. Wrote an $86500 check after trade-in. Biggest check I ever wrote. The salesman called my bank to make sure it wasn't borrowed money.
    I can pay cash for a new truck today, but I don't want the new bs. The 2003 has non-egr, etc.
     
  8. ttyson

    ttyson Medium Load Member

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    People who ready to be business owners and not just truck drivers with a truck
     
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  9. Bdog

    Bdog Heavy Load Member

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    I paid cash for mine. When it's not running I am not worried because I don't have a big fat payment to make. I don't have to take crap loads just because I have a payment due.
     
  10. fordconvert

    fordconvert Light Load Member

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    An intelligent person can make it happen with very little cash and a prayer. Anyone can do it if they come in waving a lot of cash around.
     
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