Is it better to buy brand new?

Well 25% of $25,000-$40,000 ain't really a huge chunk of change imo. I mean, it's a lot of money for sure but I figure anyone running a truck ought to be able to cough that much up for something. I had assumed 25% was standard. I see guys on here telling people they will need 25% down in most cases for a new rig.

 

Maybe I am out of touch. I’d be happy to loan someone money if they put 25% down. Maybe they will make payments for a year while I collect the bulk of the interest, and then default so I can sell the equipment. Rinse and repeat.

I’ve been putting 10% down but it’s my goal to not need the bank at all one day. Hopefully sooner then later.

 

Think about it from the banker’s perspective. If he pays $40K with $10K down, how much is he going to get for that truck when he has to repo it?

Then, how much is he going to spend on transaction costs (towing, legal, auction fees, etc) to get that money?

No wonder it’s hard to get financing on a used truck.....

 

Lol, they ran so good and made so much money it was just unbelievable!

 

Lending money at interest has always been a lucrative business. Beats having to actually work in some sort of productive occupation for a living!

 

I guess I can see that. I had in my mind new trucks. 150k - 37,500 for $112,500

$2281.09 monthly payment at 8% interest. Which doesn’t seem uncommon at all from the OEM’s.

First year interest paid $8311.12

$85,126.86 is how much of your original money as the banker that you still have “out” after one year.

After the 2nd year looks like you would have recovered all but $57,000 or if no default then made $15,000 on your money.

So, true it’s probably much harder then someone with a calculator can think of, but I do see why bankers get rich. Especially if all you do is loan out money that’s from the government and not your own.