Lease new vs buy old?

Maybe.

Today that same farm, barn, house is worth over $500,000. And then you'd need to buy the farm equipment. You'd be needing a million bucks. That's if a farmer could make a living off 100 acres today.

 

I know many that do, just in my little local area. A million today sounds like a lot, but how much was it back then after adjusting for inflation? And compare that to wages at the time. I know many older guys that talk about working 14 hour days for an eighty dollar pay check. And they dont mean the 1920s.

I consider myself to have a very strong work ethic, and not to bad with taking care of my money. But compared to that generation, I'm a lazy s.o.b. And blow money like it grows on trees.

 

G/MAN what do you consider a cheep or low payment?

 

Anything under $1,000/month would be considered a cheap payment these days. Starting out I would not want a payment higher than $1,200 at the most. In fact, if I were starting out the cheaper the better. The highest payment I have ever had on a truck was $1,200. That was a long time ago. I would not want to commit to a very high payment in this economy. I think the last payment that I had was less than $600.

 

That's why i have allways bought "plain jane" fleet spec'd trucks.(brand new,not used)
Added "stuff" on them when it was shure that it wouldn't impact on my savings.

 

Many new owner operators spend a lot of money on cosmetics starting out. A decked out truck with all the bells and whistles and chrome will not make any more money than a plain jane truck. Starting out, it is critical to keep costs down to a minimum.

 

Especially if you are just starting out as a O/O.

 

I have always said I don't need to look good going down the road but I need to look good in the bank account......

I remember years ago I owned a Kenworth cabover and ran from Ma to Va with paper there was another oo who had a brand new Pete he always bragged about his 600 hp and Quod box with 900 lights and every piece of chrome that was available every time we ran into each other he would say when are you going to junk that sh## box and buy a real man's truck......I would just laugh because I always made more miles and revenue than him and I only had a $400 payment his was $2000+ he eventually had his truck repoed and dissapeared

 

The problem with the new truck is the payment and the unknown costs of the emissions problems.

The problem with a used truck is that you have no idea what the future repair costs are going to be. Keep it a year, then you can look back and see what it cost you.

For the most part, I do believe a pre-emissions truck is going to be cheaper to operate, but they can get expensive as well. The biggest problem I have with the pre-emissions trucks is their age at this point. If I had one that I had owned for a while, I would hold onto it. But buying one that old, I just don't want to do....especially at the prices they are bringing these days.

If I wanted a pre-emission truck, I would buy a new OR used glider.
If I were buying an emissions truck, I would want some warranty. Either a new truck with all the warranty I could get or a pretty low mileage truck with warranty...and I would extend that as far as possible.

Rough numbers, a new truck is going to cost 25-30 cents per mile for payments alone. Repair costs direct and indirect will vary.

A used truck (with a $1k/mo payment) is going to cost 8-12 cents per mile for the payment and then you'll have some repairs. How many repairs? Who knows it's a really old used truck.

 

Let me start by saying I'm a newb and I don't know ####!

Then again, after years in the financial services business, Then starting a recycling company from nothing and building into a nice company for 15 years and thriving and expanding during the worst economy this country has seen in years, maybe I've learned a thing or two.

I am amazed that no one has brought up the actual cost of financing anything. I personally cannot stomach paying double the price by the time the loan is paid off.

I have a written budget. There is no line in that budget for some bank CEO's European vacation.

This country was built on "work hard save your money and invest in yourself." It is crumbling because so many are spending tomorow's income today.

Work hard, save money pay cash!

I'm shopping for my first truck. This is not an emotional event, it is a business choice. It WILL cost under 35K. I will have enough reserve to easily replace it if aliens beam it up and it's not covered by insurance, as well as my trailer. THIS IS A VERY SCARY ECONOMY!!!! Our markets are fragile. World markets are fragile. If things collapse those who have working capital will survive, maybe even thrive. Those who are highly leveraged will stand in line for food. That's the way it has always been, that's the way it is now.

But what the hell do I know? I'm just a newb. Discount everything I say, borrow all you can, If things go wrong I will buy your house and your truck at auction for pennies on the dollar.