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View Full Version : Duramax.......in need


tthomass
08-26-2007, 10:22 PM
Looks like taxes are saying buy before Uncle Sam gets to know me by my first name........he's a greedy old man.

Test drove a '07 GMC thats been on a lot for 1yr, 53 miles on it......that was nice. $36,260 on the tag or + $4k an 0%......crew cab, loaded but cloth seats, short bed, 4x4....seems good deal from the looking I've been doing.

Anyone perhaps know of one for sale thats new or great condition? Prefer blue.......what a suprise right? But color doesn't really matter toooooo much and it will be my personal vehicle.

Just thought I'd ask.....autotrader is so so.

tthomass
08-26-2007, 10:24 PM
auction comes to mind..........guess i could get a car sales license in addition to my contractor license :)

unless someone in my area has access.........

Scag48
08-27-2007, 03:59 AM
I don't know how the auction licenses are in your state, but they're a PITA to get and maintain here in WA, let alone the time it takes to obtain and they cost a few thousand to get as well. A really good friend of mine has an auction license and he's told me a few of the hoops you have to jump through to get the license, probably not worth it if your state is anything like it is here.

They should be willing to deal a little more on a truck that's been sitting on the lot for 1 year, although the price doesn't sound too bad. I'd offer $33K and see what happens, if they bite, you'd have a steal.

Tim Wright
08-27-2007, 08:37 AM
For that kind of money you can go to the dealer and have them pull up all vehicles in a x mile radius, like 1000 and see what they come up with. For the price you are talking you can have a new dually with zero miles on it. I do.

Mine is an 07 classic body style, crew cab, power windows, cdplayer, power trailer mirrors. It came in at 37k or something like that, and 39k something with tax and registration.

Tim

TWUllc
08-27-2007, 09:27 AM
Deleware Auto Auction. They run ad's on the radio all the time.

TXNSLighting
08-27-2007, 11:41 AM
just search. youll find that deal. you just got to be patience. ill be lookin for a truck in deceber. it may take a while to find but ill wait til its there.

Gravel Rat
08-27-2007, 12:40 PM
That truck has lot rot if its been on the lot for a year. The Duramax uses the same variable vain turbo as the Ford if those trucks are not driven daily the turbo rusts up and doesn't work properly. Also with a truck sitting on a lot for a year the seals in the engine and on the axles dry out and may start leaking.

Trucks that sit are not a good deal because they may become problem childs.

mike lane lawn care
08-27-2007, 01:04 PM
That truck has lot rot if its been on the lot for a year. The Duramax uses the same variable vain turbo as the Ford if those trucks are not driven daily the turbo rusts up and doesn't work properly. Also with a truck sitting on a lot for a year the seals in the engine and on the axles dry out and may start leaking.

Trucks that sit are not a good deal because they may become problem childs.

warranty my friend, warranty

Gravel Rat
08-27-2007, 01:57 PM
Why deal with a truck that will be constantly in the shop for nagging repairs.

If this is going to be a work truck and a daily driver you can't be dealing with a truck that doesn't run right.

If the dealer isn't willing to budge on the price walk away because its not worth it.

tnmtn
08-27-2007, 02:35 PM
my duramax gets parked for a month at a time in south louisiana, then for 2 weeks gets the wheels driven off it either making time up the interstate or towing heavy in the smokies. after the 2 weeks it is parked again for a month. no problems so far and runs like a top. also have heard of a couple auction lots off of I-81 near Bristol that don't require you to be a dealer. not sure how far you are from SW Va.
good luck,

tthomass
08-27-2007, 08:08 PM
I'll take my time on the truck. I took about 2 months on my International and also my Chevy.

This is not going to be a work truck. Sure it may get used here and there as a 'work truck' but its more just my personal vehicle and buying to buy really, taxes.

Thanks for the info GRat.

License here are pretty simple really. Ideally you just find someone to tag along with and give them $500 or whatever.

I am very much looking forward to it, guy thing I guess. This is also going to give me the oportunity to get involved in endurance racing with the Honda. Brother and I are wanting to do it but he's in college so no funds for him......ahhh yes, 3hrs on the track :)

Lets see whats on ebay and thanks for the feedback.

Oh yeah, Ford and Dodge suck bwah hahaha....did I just start something???

mrusk
08-27-2007, 08:27 PM
I am itching for a truck too. I won't settle for anything but letter though. I was actually thinking about the cadalliac version of the avalanche!

sgrprincees
08-27-2007, 09:52 PM
Don't take these questions as criticism, I'm honestly curious. If it's not a work truck, what's the tax benefit? I'm semi-clueless about depreciation and the tax benefits from buying stuff. I know you can write off whatever miles are used for work, is there any benefit beyond that?

TXNSLighting
08-28-2007, 09:04 AM
Oh yeah, Ford and Dodge suck bwah hahaha....did I just start something???

ya just had to say somethin dumb

tthomass
08-28-2007, 04:49 PM
I thought that would get your attention Texas!

Benefit of the truck is kinda 2 ways:

1) Mileage write off.......$.48 1/2 per mile
2) If I net say $100,000.....I'm taxed on $100,000 but if I buy a $40,000 truck I'm now being taxed on $60,000 vs $100,000 because now I'm not as 'profitable' and can drop into a lower tax bracket

Lawnworks
08-28-2007, 06:31 PM
How much is it actually going to save you in taxes?

It is hard for me to justify spending 40k on something that depreciates rapidly. Is there any other way you can offset your taxes by investing in something that will appreciate?

markam70
08-28-2007, 09:10 PM
I thought that would get your attention Texas!

Benefit of the truck is kinda 2 ways:

1) Mileage write off.......$.48 1/2 per mile
2) If I net say $100,000.....I'm taxed on $100,000 but if I buy a $40,000 truck I'm now being taxed on $60,000 vs $100,000 because now I'm not as 'profitable' and can drop into a lower tax bracket
i may be wrong, but vehicles and such are depreciated over several years. if so, then you would only be able to claim a percentage of the price this year.

TXNSLighting
08-28-2007, 10:37 PM
most businsses need to by this stuff every couple of years weather its vehicles or equipment or whatever, and yes it makes a big difference in taxes. i also have to buy this year.

tthomass
08-28-2007, 11:11 PM
You can write it off on % over years or all at once but limited to writing off about $100k per year.

So, I could write off $40,000 this year or stretch it out over X years regardless if I am still making payments on it.

tthomass
08-28-2007, 11:17 PM
Oh yeah...........appreciate, I'm looking at land next. Possibly this year but probably not. Depends on what tax man says.

TWUllc
08-29-2007, 07:37 AM
Are you still pulling the T90 in the dump trailer? Hows that working out?

sgrprincees
08-29-2007, 04:10 PM
If you're driving it for mainly personal use, I'd assume that you can't legally write off the full cost of it as a business expense though, or can you if you're using it a certain percentage of the time for business?

Lawnworks
08-29-2007, 05:35 PM
As far as personal use goes... the truck is owned by the company so I don't see how it couldn't be completely written off... if it can't ... find a new accountant.

I would never buy a 40k truck to escape taxes. I work too hard to make my dough to just watch it depreciate year after year. I would try to find another loophole to avoid the taxes, or just pay the taxes and put the rest of the money in the bank(if you haven't spent it already). I find life is much less stressful w/ a fat bank account. To me... that is quality of life.

I used to think... I deserve it... but now I am thinking along the lines of "will my net worth increase later w/ this purchase?"

PlatinumLandCon
08-29-2007, 06:44 PM
I hate hearing people complain about paying more taxes. Think about it, that means you're making more money:cool2: . As for the truck, isn't the 6000lb+ "work vehicle" write off still open. As in you can write off the whole value as a one-time thing. I'm currently not at this stage financially so I cannot speak from experience but this is what I've heard.

As for buying property, this is DEFINITLY something to look into. Do you currently lease or own? If you lease, its a no brainer to buy an industrial space, maybe even with a showroom. If you can afford to buy, do it. The value will increase and you have to house your business some where so why not pay off something you own instead of paying off something somebody else owns.
You can always buy a 10 000 sq ft place and lease out a chunk of it to help reduce your expenses and then in 20 or 25 years you're sitting on millions in real estate that is your retirement fund. Personally, I'd hold off on the truck for this year and consider buying a property to reinvest the money to lower taxes and invest in your future.

Good luck with whatever you choose!

-Tom

tthomass
08-29-2007, 07:41 PM
The truck is two needs.

1. I drive a Honda Civic SI that is lowered with a few 'goodies'. Not exactly something useful and it is going to be put to track use. Also doesn't carry the image of my company for when I'm meeting new customers.

2. It is going to be my personal vehicle (keep the Civic insured as 'primary'). I'm looking at used, I may not dive into $40k. If I do dive in, I will not be paying out $40k at once. I will use the 0% financing and pay off the truck over 3yrs while reducing my up front 'risk'.

The truck is both a want and a need. I need a vehicle for both work and pleasure. I will not be purchasing another one next year for the heck of it, this truck will be around for quite a while. Also, by purchasing, I'm avoiding $10,000 in taxes.......thank you Mr. Accountant man back home! Now, purchasing doesn't have to be a truck but then there is the need blah blah blah. I'm looking at both truck and some form of investment (land, house whatever)......ROTH IRA is maxed.

I'm looking at property too to see what I can find. Chances are I would buy out of the area due to pricing in this area but that is an uneducated statement as I have not looked very hard in my area yet. The lot I wanted I know went for around $1.2million......zoned commercial, small building and 2.5 acres = ouch.

tthomass
08-29-2007, 07:43 PM
Dump trailer is good, not as easy as on the back of the truck though......pulling out the ramps and putting them back up is a pain.

Check out my 'International Construction' post for some of today's fun!

Lawnworks
08-29-2007, 08:40 PM
Are you set up as an S-corp? It seems like w/ all you have purchased you would have to pay nearly nothing as it is.

I would pay the 10k and put 30k in the bank... especially going into winter.

tthomass
08-29-2007, 11:23 PM
Yes, I am S-corp. Lots of purchases but also lots of growth. The International was first purchased in December of last year so its already written off for the most part.......no taxes last year.

So yeah, I'm kinda running out of things to write off BUT rememeber this is not just to write something off on taxes.......there is the need and I do agree it is nice to have the money in the bank but I'm not hurting and I need more write off.

Could look at it this way......I'm gett'n a $40k truck for $30k. I could really use the truck ASAP and I'll see what I find this weekend. Come November I'll have pretty hard numbers to go by and see where I stand. If November is strong I may need to spend again pending where I am at for the year.

Additionally I refinanced the International from a 10% loan (ouch) to a 7.6%. The 10% is a fixed rate that the bank had for 'equipment purchases' and had nothing to do with credit........my credit is very strong.

mrusk
08-30-2007, 08:32 PM
tthomas- When we met up over the winter for lunch, i think i will let you pay the bill. I figure you could use the right off!

PlatinumLandCon
08-30-2007, 09:31 PM
Additionally I refinanced the International from a 10% loan (ouch) to a 7.6%.


Goooood idea. That 10% would be killer over the life of the loan.

tthomass
08-30-2007, 10:18 PM
Thanks RUSK! I bought donuts etc tonight for all of us tomorrow.....and guess what.......I'm writing it off :)

I also got $170ish in diesel....not bad, I have paid $223 to fill up from empty before, gah.

tthomass
08-30-2007, 10:29 PM
I did run across some property today.........about $100,000 per acre. Hmmmm.

Purchase, lease 1/2 and cover my payment.

PlatinumLandCon
08-30-2007, 10:33 PM
I did run across some property today.........about $100,000 per acre. Hmmmm.

Purchase, lease 1/2 and cover my payment.

Nice work. Definitly the best thing to do if you can afford to buy.

mrusk
08-31-2007, 07:05 PM
I did run across some property today.........about $100,000 per acre. Hmmmm.

Purchase, lease 1/2 and cover my payment.


Be carefull on speculation, its a good way to loose everything when things do not work out like you planned. Put the money back into the business.

Lawnworks
08-31-2007, 08:36 PM
or put the money in the bank! Lack of capital is the #1 reason small businesses fail.

tthomass
08-31-2007, 08:55 PM
The mortgage would only be $1600ish on the land......I've yet to really look into it and will not seriously anytime too soon.

The bank is just fine, I just need more to write off. I didn't get here being stupid. I'm already 200% up of last year and still have fall to come......with current backlog, no problem hitting 350% by Christmas. Thank you for the concern though. People often post up with an empty mind.

mrusk
08-31-2007, 09:31 PM
The bank is just fine, I just need more to write off. I didn't get here being stupid. I'm already 200% up of last year and still have fall to come......with current backlog, no problem hitting 350% by Christmas. Thank you for the concern though. People often post up with an empty mind.


Thats what i like to hear! One thing i think you should consider dumping money on is professional designed brochures and web sites. Pay good money to have some copy written and it will pay off. I am planning on dumping some serious money on this even though i am booked out into next june.

twj721
08-31-2007, 10:00 PM
try ebay u might find something there

Lawnworks
08-31-2007, 10:27 PM
Thats what i like to hear! One thing i think you should consider dumping money on is professional designed brochures and web sites. Pay good money to have some copy written and it will pay off. I am planning on dumping some serious money on this even though i am booked out into next june.

I thought you weren't giving away your secrets!

tthomass
08-31-2007, 10:51 PM
Website will be up this winter.

99% of my work is through referrals. I want the website so that before I visit their home, I can have them visit my website to get the wheels turning so to speak.

Give them the oportunity to gather ideas, see proof we're very capable of handling their project and to see that, basically, anything outside we can take care of for them.