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When do you bite the bullet and buy new trucks

Discussion in 'Trucks and Trailers' started by dmk395, Nov 28, 2019.

  1. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 17,515

    We have several plow trucks that old we bought new.

    no blown transmissions
    The chevys needed some frame welding but the fords are still running fine.
    They’re beat and worn , but they go out every day.

    min the process of updating the fleet.
    Goal is to get none older than 2011-2012 to replace the 99-06 trucks
     
    Cam15 likes this.
  2. rclawn

    rclawn LawnSite Bronze Member
    Messages: 1,483

    I know a guy that is upside down on 4 new trucks he bought... I can’t even imagine lol. If you do buy new trucks don’t spend $70k a truck and finance for 7 years with nothing down. RAM has 0%
     
    Cam15 and sjessen like this.
  3. Mowing monkey.

    Mowing monkey. LawnSite Bronze Member
    Messages: 1,093

    I can’t imagine spending that much on a truck. Half he the people I know with new vehicles have more trouble than my old junkers. From a more realistic option I think buying 100,000 mile vehicles makes a lot more sense.
     
    Cam15 likes this.
  4. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 17,515

    Why would it matter?
    The only time being upside down is a problem is if you’re trying to sell/trade the vehicle or the insurance totals it after an accident.

    otherwise it’s a monthly payment/investment/write off on your business

    if you’re not upside down on your vehicle only because you made a substantial cash down payment, your still upside down because now you’re out that cash as well.

    better to finance the vehicles and keep the fluidity.
     
    Land1 likes this.
  5. rclawn

    rclawn LawnSite Bronze Member
    Messages: 1,483

    I see your point, but this guy in particular buys a new fleet every few years... Trading in with negative equity is what I was meaning.
     
    Cam15 likes this.
  6. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 17,515

    Well
    If he can afford to do it
    It’s not really negative
    The business is buying/paying for it

    it’s simply an expense / investment

    how much downtime does he have?
    How much in repairs does he have?

    pretty much zero

    in many cases it maths out.

    typically
    After three years of payments
    Trading in on new commercial vehicles, after incentives and rebates, you don’t have much negative equity to speak of
    When factoring in the equivalent of keeping the trucks past warranty and factoring in repairs/maintenance
    He may come out of that math very favorably for his business model
     
    Mark Oomkes and Mdirrigation like this.
  7. Cam15

    Cam15 LawnSite Fanatic
    Messages: 6,377

    That's cause you drive a ram....
     
    Bitches_Brew and That Guy Gary like this.
  8. UpNorthMowing

    UpNorthMowing LawnSite Fanatic
    from Ontario
    Messages: 20,011

    :popcorn:
     
    Bumpmaster and Cam15 like this.
  9. 4 seasons lawn&land

    4 seasons lawn&land LawnSite Gold Member
    from NY
    Messages: 3,753

    Actually the 3500 got traded in on an F350. And the 5500 got sold for a Volvo tri axle. The Chevy did seem to hold up better underneath.
    I figure a new HD pickup is $40k, in 10 years is worth $10k. So $3000 per year. So if I can trade in every few years for $4500 per year or less, I’ll do that.
     
    Mark Stark and Cam15 like this.
  10. Mdirrigation

    Mdirrigation LawnSite Platinum Member
    Messages: 4,499

    I just ordered the Tesla Cyber truck , 69k . I will get to my jobs much faster . Next I am ordering the Tesla zero turn
     

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