Forum Discussion
noteven
Oct 19, 2014Explorer III
mich800 wrote:06Fargo wrote:
We are looking at class 8 because of these highly suspect economics:
2015 Ram 3500 Laramie DRW 6.4 gas - $58,000? Diesel $66,000? ciphers inta "bi weekly payments" of $340 for only 8 years according to the build and price website. Add depreciation over 8 years of RV towing 10,000 miles a year of say $32,000 for easy figgering? So pay back $58,000 and absorb $32,000 = $90,000 minus the residual value of the truck of $25,000 = $65,000 spent before the fixing. Not to mention the lost opportunity value on the $65,000 paid out.
Compare to a fleet maintained $20,000 Class 8 tractor that has more brakes in one front wheel than the above pickup, and own it over 8 years and put 80,000 miles on it. How much less is it going to be worth?
Please note we live in a place with room to park and store it, and a province that allows class 8 trucks to be registered as personal trucks like a pickup if that is what you use it for.
You do not add depreciation to costs. It is solely an accounting number. Your cost is the purchase price plus interest minus residual only if you sell it. There is no opportunity cost on $65k as in your example you are financing it.
As you can see my figgers were highly suspect :) that's why I'm not a finance genius -
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