Should You Buy a Truck in 2021?

Discussion in 'Ask An Owner Operator' started by SeanQ, Nov 23, 2021.

  1. Freddy57

    Freddy57 Road Train Member

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    Yes, you should buy a truck now...the prices are not going to come down again. Gone are the days of buying a cheap truck...the new era of inflation and currency devaluation is upon us and when it ends, the price of everything will slow down but it will not come back down. It's the 70's relived.
     
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  3. Natty Bro

    Natty Bro Bobtail Member

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    If the cap rate is high, the depreciation doesn't matter, especially on a new truck. This is why carriers have no problems putting rookies in new trucks--the cap rate is their breakeven and it's easy to hit with a new truck because major breakdowns are less likely.

    Ideally, if he has the cash, buying a new truck is best. He hits his cap rate quickly, without major breakdowns, then with proper maintenance he can milk it until it's time to get rid of the old clunker. The icing on the cake is if it's a Pete because there's still some sort of resale value on it, but obviously this is not likely now with the shortage.

    A used truck is completely different: it's a huge gamble, especially if you don't have the ability to fix it yourself or do major repairs. You have to really do your homework, and prepare for the absolute worst. For me, it's not worth it.

    Houses and trucks can't be compared other than cap rates. One is passive, the other is workable. If you like the job, then working it is not a burden.
     
  4. Natty Bro

    Natty Bro Bobtail Member

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    Very true!!! I laugh at people that think we will have any significant price deflation in a few years. They obviously haven't been paying attention to the USD for the past 50 years.
     
    jsnell Thanks this.
  5. TallJoe

    TallJoe Road Train Member

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    Nothing to do with the equipment prices increases in the last 14 months or so. That's driven by a blind gold rush. Nothing else explains 500K mile used Cascadias priced at $100 000 USD vs 45K merely 20 months ago. Besides, USD is still steady as compared to other currencies. Inflation is everywhere. What do say better currency than USD is, even now?
     
    Rubber duck kw Thanks this.
  6. Rubber duck kw

    Rubber duck kw Road Train Member

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    You could spend what he has cash on hand buying a new truck and trailer and getting rolling. A new KW900 is an easy 230k, I saw a used Great Dane reefer that was 2 years old they were asking 130k, granted it was an owner op spec trailer. Trucking has gotten stupid expensive to get into in the last couple years.
     
    Natty Bro Thanks this.
  7. TallJoe

    TallJoe Road Train Member

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    I sort of understand those who just paid big money for their junk, trying not to lose their calm, claiming inflationary theories. Hearing that they overpaid up to 70% of something that nobody wanted to even look at not too long ago must be rather disturbing. Inflation is undeniably real but still, just wait and see what the used trucks will go for at places like Arrow Truck Sales, when the container ships are offloaded, domestic oil fields are shut down completely and the rates are plummeting down below 2 dol per mile again. The pendulum takes its swings. Not the first time, not the last time.
     
    shooter19802003 Thanks this.
  8. Midwest Trucker

    Midwest Trucker Road Train Member

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    I agree with what your saying. It’s easier said then done but your correct for sure.

    Most people on here say buy real estate. Well, that’s great and all but you must have revenue and profits before you can buy these things. If I’m going to go into debt then it’s going to be for something like trucks and trailers that can make you a lot of return and much quicker. That is however, if your profitable and can make these kind of returns. Like I said, easier said then done. Very possible though.

    When I can cash flow my entire business and no longer rely on a bank even a little bit, is when I’ll start buying properties and such. Not until then though as right now I’m focused on generating profits in the short term. It is tough though sometimes to predict or know where to put your money and efforts. Trucking has generated record profits but also property and such has appreciated by record amounts. I suppose that’s why the rich get richer once you reach a certain threshold. You can have your hand in many cookie jars. lol

    And I agree about the new trucks. I’ve found it cheaper and more profitable to run new stuff. Depreciate it down and then sell it while replacing with new. However, right now you just can’t get them like I was saying. This new 680 that finally came in it wouldn’t surprise me if I could get 300k for it right now which is insane. I paid 155 for it. The sister to it built in August still is waiting on parts, so this shortage has not improved at all. Dealer says same truck next year will be 175 IF you can even get one. He said no Cummins and Paccar is a maybe by fall. I’d sell this one I just got but if I can’t get more then what am I gonna do? However, I reckon that’s why it’s worth so much for now.
     
    GYPSY65, Siinman and shooter19802003 Thank this.
  9. Long FLD

    Long FLD Road Train Member

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    If you want to buy a truck and can find one you want then you should buy it. Everyone on this site has been telling people to not buy trucks probably since the message board began.
     
  10. Siinman

    Siinman Heavy Load Member

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    Yep! Always hear that it is a bad time to buy a truck.
     
  11. Pamela1990

    Pamela1990 Road Train Member

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    I'm buying 10 trucks this coming year, in 2022, so it isn't me saying that.
     
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