Some numbers for new O/O

Not much.

 

Do you think it's better to buy a new truck to avoid costly repairs and have a warranty? Depreciation the first few years would save a lot on taxes too. I don't know if it would be better to pay cash for a new truck or finance it. Cash in the bank isn't earning much these days.

 

Ive had family members who hauled fuel got new trucks.... They regretted that. For the first 5 years warrenty then year 6 and then the company got winy. 2012 and it's been in the shops more times in a year then the old truck in its entire life.

 

Please recognize that I'm not familiar at all with you or your finances, so I'll speak in generalities here - and some of it might not have much relevance to you.

If you are not a mechanic or have access to one you trust who can work on modern trucks, then buying a recent model used truck with more than a few hundred k miles on it is a risk.
Modern trucks are designed to run 400-500k miles with minimal preventative maintenance, then megas sell them before the deferred maintenance can't be put off any longer, leaving you to pay for all the maintenance the megas didn't do in a timely manner.

I bought used because I bought a truck I had already been driving for 250k miles. I was confident that the truck was solid. So far I've been right.

As for the cash vs. financing, if you can pay cash for the truck, then it is likely you have good enough credit that you can get an affordable note on it. Sinking that much of your money into a truck that might get it's nose ripped off in the truck stop next week is not a scenario I like to think about. It would suck to put yourself in severe financial stress because you tapped your cash reserves to avoid debt.

Now, if your mortgage is paid off, the kids aren't going to college on your dime any time soon, your retirement is fully funded to the max every year, and you have no other debt, that equation might change.

It's all a matter of risk. Think about what would happen with your finances if your truck (or you) are sidelined due to an accident or injury. If it would put you in severe financial pain, then finance at least part of it.

Nothing says you can't put a 50% down payment on the truck, after all. Or even 75% if you want to keep a solid emergency fund at the ready.

 

I'm divorced and have no children. My house is paid off and I don't have any debt. My only obligation is a $2,000 per month alimony payment. I've owned my own construction business for 30 years and I've managed to save a lot of money. I have a shop and have turned wrenches all of my life although not on a big truck. I don't want the hassle of major repairs but oil changes, small repairs and servicing are fine.

I ride motorcycles so accidents are a real threat. That's why I was thinking about buying outright so that if anything happened I could just park the truck and not worry about it. I see a lot of guys numbers and that big truck payment is right at the top. I figure if I can make that payment to myself with interest it would be better than letting the money sit in the bank. I've seen guys get in trouble with that big payment and something major goes wrong with the truck.

If I do shut down my construction company I'm going to have a huge tax liability. I could really use that accelerated depreciation to reduce my tax liability.

Thanks for the advice.

 

Define costly repairs?

I bought my '12 Cascadia with the ISX death engine 30 months ago for $42.5K. 399K miles.

I'm at 670K miles now. It's made enough money I now have 3 more trucks and a couple hundred U's in the bank.

Many are rooting for me to fail.

I will tell you my insurance is about $170 month on it, with another $80 for BT.

You're brand new truck, you're looking down the gun barrel at $700 or better plus the $80 month, just for insurance.

Warranty-

At one point do you plan on going in for warranty items?

Light bulbs?
Air leak?

I mean, are you gonna lose 3 days at a dealer for a $100 item?

You're brakes and other wear and tear items aren't covered btw.

Just sayin.

 

If I were to put myself in your shoes, based on what tiny bit I know about you, I would lean towards buying outright. Maybe try to find a year-old truck with lots of warrantee on it that you can pay a bit less for.

 

Or maybe find a 1999 Truck that's been rebuilt

 

How long generally do truck engines last? Are they pretty tired at 750K or will they go a million miles or more? I never thought about the insurance, that's significant. Does your truck have an APU? If not do you have 110 power on the truck?

 

Do pre DEF trucks get better mileage?