dcsimg The Get Rich Slowly Forums • View topic - New Truck or stay with old one.....

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It is currently Sun Nov 23, 2014 1:43 am




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 Post subject: New Truck or stay with old one.....
PostPosted: Tue Sep 16, 2014 12:56 pm 

Joined: Tue Sep 16, 2014 12:46 pm
Posts: 3
Ok this is a tough debate right now. I have a 2005 F250 Diesel that has become very unreliable. In the last year I have put about 6k of repairs into it, and I just can't find myself trusting it, still owe about or just under what I could trade for it.

I have a 2003 Dodge Durango that runs but it has a few little hitches to but it is fully paid off.

I have needed a truck multiple times for projects as well as taking my family camping. Having a truck for my young family I think is pretty darn important. I want to dump both my vehicles and pick up a new truck that is hopefully 100% reliable. I think in the long run the ford is the cheaper route, but I am tired of the mechanical issues and paying someone to work on my truck.

What is your advice? I work as a Police officer and National Guardsman. So I do alright financially.


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 Post subject: Re: New Truck or stay with old one.....
PostPosted: Tue Sep 16, 2014 1:20 pm 

Joined: Sat Jul 19, 2014 10:16 am
Posts: 38
My opinion is do what makes the most sense financially. The old me would have that brand new truck sitting in the driveway before I finished typing this reply. But I was dumb then. With that said I would do this.

Sell the Ford and pay off that loan. Since it is running well now and you just repaired it, it should be easy to sell. Then fix the Durango's minor issues. Then start a car replacement fund while driving the Durango into the ground. Pay cash for your next vehicle if possible.

Benefits to this is you will have no car loan debt and can contribute heavily to your retirement funds, emergency fund, mortgage, car replacement fund, kids educations, whatever...


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 Post subject: Re: New Truck or stay with old one.....
PostPosted: Tue Sep 16, 2014 3:08 pm 

Joined: Sun Jan 06, 2013 10:30 pm
Posts: 150
Seem like the truck is giving you more problems than it’s worth. I say get rid of the truck and buy a used truck not a brand new one though. Just my two cents.

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 Post subject: Re: New Truck or stay with old one.....
PostPosted: Wed Sep 17, 2014 8:08 am 

Joined: Tue Sep 16, 2014 12:46 pm
Posts: 3
Well sat down with wife and looked at the budget and then followed some steps to determine in 4 years the cost of the two vehicles.

Thanks to the above posters.. you made me think of lower cost in the long run, and that a truck is not a life investment.

Going to sell Durango,Trailer, and use savings to pay off truck. Then save for a newer truck but drive this one into the ground.

The only reason I was going to keep the durango was it got me from A to B. I wanted the bed of the truck for home projects, moving things.... etc. I looked at that if I kept the truck going, and maintained it over 4 years, it was thousands of dollars cheaper (20k). I looked at that and I was a little floored.... and I was like why am I doing this....

So after reality hit I looked at solutions to get out from under this, and one thing I need to do is trim the fat at the house of stuff we arn't using this moment, i.e. Durango and Trailer.


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 Post subject: Re: New Truck or stay with old one.....
PostPosted: Thu Sep 18, 2014 8:13 pm 

Joined: Thu Aug 28, 2014 10:31 am
Posts: 130
Location: Southeast US
Your experience is one of the reasons it's really important to avoid car payments (at all if possible!) on old vehicles. There's nothing worse than making a note on something that's leaving you on the side of the road or eating you alive in repairs. You're in a worse situation because diesels can be outrageously expensive to repair. We have several in our fleet at work and I'm always disturbed by how expensive they are to fix.

If you can sell the truck and break even, you might be better off going that route; a diesel Ford will still be worth something; a 2003 Dodge Durango is just about fully depreciated. From a financial standpoint it's almost always more sensible to drive the fully depreciated vehicle and sell the vehicle that still costs money.

Example: 2005 F250, worth $15k, owe $15k, $300/mo payment; 2003 Dodge Durango, owe $0, worth $4000, no payment

If you sell the truck and break even, over 1 year you will save $3600 in cash (let's assume no repairs for simplicity). The Durango might be worth $3000, so you've got $6600 in equity. If you drive the truck and sell the Durango, you'll get $4000 for the Durango, spend $3600 on the truck, and maybe "earn" $1500 in equity on the truck. That gives you $1900 in equity, but you've still got an old truck. If you do this for 2 years, you save $7200 in cash, the Durango is worth, say, $2000, so you've got $9200 in equity. If you drive the truck, you spend $7200, you get $4000 for the Durango, and you maybe have $4000 equity in the truck. That leaves you with $800 in equity. See how you keep going backwards? There's no way to overcome the vehicle payment until it's gone.

So what you really have to gauge, from a financial point of view, is how long you can do without the truck until you save enough money to not have a payment at all.

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 Post subject: Re: New Truck or stay with old one.....
PostPosted: Fri Oct 03, 2014 9:23 am 

Joined: Thu Aug 28, 2014 10:31 am
Posts: 130
Location: Southeast US
Original Poster (OP), I'm curious - what did you decide, and what did you do?

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