View Full Version : is buying a new truck financially the right choice for me?

grass disaster
06-07-2009, 05:32 PM
i'm part time lco...seems like 2 full time jobs
i have a 2001 chevrolet hd ext. cab which i bought with 50,000 for $20,000 5 years ago.

it's fully depreciated this year.

it's been a fantastic truck no problems, i have 82,000 on it now. so i don't put on many miles as you can see. it's just a work truck. i have a car for going to my f.t job

i got kinda beat up on income taxed last year. this year is tracking to be the same as last year(income speaking)

i lucked out and won a big contract this year. i lost about 1/2 my residential work though.

i forcast this year to be my last good year. next year i plan on being slow i'm getting tired of all the lowballers. the market's just flooded with lco now days.

would it be a good idea to get a new truck this year. i'm thinking a new truck is what 30k i could probably get 10k for mine.

06-07-2009, 09:05 PM
now is the time to buy.... dont forget you can write it off

grass disaster
06-07-2009, 10:06 PM
now is the time to buy.... dont forget you can write it off

yes i know i can write it off. i got that figured out :hammerhead:

06-07-2009, 11:22 PM
It is only a tax advantage if you are paying cash for it. If you finance you are still paying interest on it. How much will you be able to right off each year with the new truck?

06-07-2009, 11:26 PM
I'm not really sure what your question is? If you're projecting paying a boat load of income tax, it may make sense to buy the truck and take section 179 to get your income down to a manageable level. (if you're planning on buying a truck in the near future anyway) It may not make sense however to spend $20,000+ on a trade in just to save $2,000 in taxes. The tax write off only recovers part on the cost. Make sure the truck does not fall under the "luxury automobile" limitation. Most full size pick ups don't.

06-08-2009, 01:23 AM
run some numbers and see what tax bracket it will put you in...

numbers don't lie... it's the guessing them that is the hard part.

06-08-2009, 03:39 AM
now is the time to buy.... dont forget you can write it off

I useally agree with you from your other posts until this one...

06-08-2009, 11:37 AM
Simple Math

Amount of $ saved by not paying taxes = Truck depreciation

If you can afford it, buy a slightly used truck. Let someone else take the depreciation.

06-08-2009, 12:40 PM
No it does not sound to me like it is a good idea.

For one you said you have no problems with the truck. Sounds like a keeper.

Two, it should be paid off by now correct? You will not come out ahead by having a new truck payment even though you can depreciate it. It will cost you more.

Three, you said you expect this to be your last good year. Why get yourself locked into payments for the next 4 -5 years if you don't expect anymore good years?

It is never smart to "buy" deductions.

grass disaster
06-08-2009, 08:31 PM
what if i paid it off right away and deduct it all in one year?

i just thinking of getting rid of it before i blow a tranny or blow a motor.

06-08-2009, 09:28 PM
Off topic, but where in MN are you?

grass disaster
06-08-2009, 09:47 PM
Off topic, but where in MN are you?

down by lakeville. you?

06-09-2009, 10:43 AM
is that anywhere near long lake I used to live their