Putting $$$ into an old truck vs. depreciation on a new one

have you looked at an amortization schedule to see what the interest payments will be?

I am guessing you'll be financing $90,000 or better for 84 months at about 9% interest. (seems to be the going rates now)

http://www.amortization-calc.com/#loan-90000-7-9-7-2013-2

$1,448.02 Monthly Principal & Interest
$121,633.43 Total of 84 Payments
$31,633.43 Total Interest Paid
Jun, 2020 Pay-off Date

The only part that is really deductible is the interest, but you can depreciate the $90,000.

The $30,000 to do the work you are talking is a capitol expense and pretty much expensed out when you perform the work.

If the body is generally in good enough shape to continue to use, then it would make sense to me to update the drive-line as you are talking.


I'd take it to the shop, take momma and go to the bahama's or Hawaii for some much needed R&R and come back to a "new" truck.

 

Seven years at 9% interest? Who in their right mind would do that? I would do 5 years at 7% or less, maybe.

 

I agree. Had a dealer offer it to me on a new truck. Just saying.


Follow the link and see the difference terms and amounts make.

It's just one scenario that seems common from dealers.

 

Any idea what the insurance cost difference is on a new, expensive truck?

 

I have an app on my phone that does amortization schedules. With the price of new trucks it doesn't surprise me that they are writing 84 month loans.

 

Not sure what insurance costs in Canada, but figure down here $1.85 per thousand.

$140,000 would be $259 per month
$40,000 would be $74 per month

 

here's a thought, finance it for 84 but pay off in 60. keeps payment low in those lean months.