My plan to actually operate at a profit!

Discussion in 'Trucks and Trailers' started by Howie's Lawn Care, Jun 8, 2006.

  1. Howie's Lawn Care

    Howie's Lawn Care LawnSite Senior Member
    Messages: 512

    Hey guys,
    I made a post about purchasing a 1989 Chevy 1500, but most probably didn't see it so I'll tell you about the truck first. One of my customers has the following truck and his bottum dollar is $2500.00. He is selling it for $2800.00, but $2500.00 slipped out. Hereis the details.

    1989 Chevy 1500
    5.7 L V8
    126690 Miles
    All power
    Regular Cab/long Bed
    Good tries
    Excellent body condition with one dent at the top of tailgate
    running floorboard
    tonneau cover
    new exhaust
    new water pump
    new battery

    Here is my plan. I am currently paying $152.21 per month on my truck and $141.00 per month on full coverage truck insurance. My truck gets 12 MPG pulling and less in the winter when not pulling. I'm not concerned about gas consumption.

    I owe around $5600.00 on my truck and the private party value is around $7900.00 in fair condition. If I put it for sale at $7100.00, I think I could sell it and come out with $1500.00 in pocket. I would then be $1000.00 behind even though I would pay for the truck in cash. This $1000.00 would be made up in four months of driving the Chevy because I wouldn't be paying the truck payment and I would carry liability insurance on the Chevy. I could then get my ZTR paid off. I would only have to pay for gas, internet, insurance, and cell phone throughout the winter. Then I could go for a dump truck or F-250 like I've been wanting pretty bad. I could just keep the 1500 around.

    If something went wrong with the Chevy, I wouldn't even have much money invested. What do you guys think about this idea? It's only a two wheel drive truck, but I would be out of debt faster and be able to save more money so my business can grow. Thanks for any advice or ideas.

    -Nick Howard
  2. NNJLandman

    NNJLandman LawnSite Bronze Member
    Messages: 1,306

    4.0L to a 5.7L that $1000.00 will go right to paying for gas....QUICK. I have a 98 Chevy 1500 5.7L fill it up sometimes twice a week.

  3. Howie's Lawn Care

    Howie's Lawn Care LawnSite Senior Member
    Messages: 512

    I'm only getting 11.75 to 12.5 right now and I got a staggering 10 during the winter months. I think I could handle the difference in gas consumption, don't you?
  4. Fubba

    Fubba LawnSite Senior Member
    Messages: 360

    You'll be able to. That truck will pull much better. Probably will get between 9 and 10 if I had to guess while pulling.
  5. Howie's Lawn Care

    Howie's Lawn Care LawnSite Senior Member
    Messages: 512

    One of my friends has a 1990 full size Jimmy with the 5.7 and says he gets around 9 or 10. His dad has a 93 or 94 chevy and get the 12-14 area. It doesn't seem like a big deal to me when you consider the extra power. I could also route my jobs more efficiently and make up the difference if it was that big of a deal.
  6. Envy Lawn Service

    Envy Lawn Service LawnSite Fanatic
    Messages: 11,087

    It's a thinking mans game...

    Yeah, geez, I would think you could average 10 mpg with EFI and 2wd.

    I had a '78 shortbed 4x4, 350 HO carbed, granny 1st 4 speed, low positive traction rear, 35-12.50's and I got 5 mpg hotdoggin around in it, better if I didn't.

    But yeah, it's a thinkin man's game. You are paying right at $300 a month now for 12 MPG. Sell that at your asking, come out $1,500 to the good. Put $1,000 up, buy the used truck cash... bye-bye payment and high insurance... hello no payment and cheap liability insurance. The purchase re-pays you for the investment 3-4 months. Every year thereafter it saves you like $3,000-$3,600 yr depending on cost of liability and additional fuel deducted (if any) from the $3,600.
  7. howardsells2000

    howardsells2000 LawnSite Senior Member
    Messages: 355

    I say go for it. I think you will like to full size truck better and I think the gas will probably even out. The hard part is going to be selling your truck. Selling is a pain in the butt. People are going to call and say they want to see the truck and you will stay home and wait for them, then they won't show up. Some will come over and talk up a good story and say they want to buy the truck but they still need to talk to their wife. Bla Bla Bla. Selling is a pain. Hopefully you will luck out and the first person to look at your truck will buy it. I don't know if they have Car Max's in Ohio but in Maryland we do. They are a big car sale operation that will buy your car or truck and you don't have to buy one from them. Good Luck.
  8. hosejockey2002

    hosejockey2002 LawnSite Bronze Member
    Messages: 1,195

    In your costs you're not figuring in what it will cost to keep the truck running. Old trucks have a way of breaking and costing you money. Also, when they're broken, you can't work, so it costs you even more. I'll never own an older truck again.
  9. lwcmattlifter

    lwcmattlifter LawnSite Senior Member
    from NC
    Messages: 859

    True but they are only going to buy the vehicle at wholesale value which isn't more than 4,750-5250 on his truck.
  10. Jeds_Lawn_Care

    Jeds_Lawn_Care LawnSite Senior Member
    Messages: 304

    I spent $50 a couple of days ago filling uop a 97 Z71 1500. But you have to consider the fact that it is 4x4 (bad 4 mileage) Fuel Injected (good 4 mileage).

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