As I have posted on another thread, I am in the market for a truck, and am still contemplating on purchasing new vs. used. Will be going with a 3/4 ton. If I get a new Chevy/GMC, I have relatives that work for them and I can get a great deal on a new one. Figured that I could get a new 2500 HD for around $350/month if I don't make a down payment (less if I do). I will have to finance whatever I get, so the monthly payment would probably not be that much higher than if I bought a decent used truck, I would just be paying for the new one longer. Anyway, my question involves tax savings. Here is the way I am trying to figure out exactly what it will cost per year for new vs. used. A truck is to be depreciated over a 5-yr period. I am not quite sure exactly how to use the MACRS depreciation (haven't learned that yet), only straight-line, but I am assuming that roughly the depreciation for each year will be 1/5th of the cost for either method. If this were the case, and the truck cost $22,000, then I would have a depreciation deduction of around $4400/year. Am I correct in assuming that I will actually be saving 30% of that $4400 in taxes (because of deduction), or $1320/year, that I would otherwise probably be paying? Maybe this is just some crazy idea that I had, but it makes sense to me. Will be glad when I get my accounting degree in a few years....will make things a whole lot simpler.