Doing the MPG math on a new(er) truck
Greetings, Recently I was getting the 'itch' for getting a newer truck. My old Ford 1997 F250HD has served us well. We bought it in 2001 for $12K with ~92K miles on it and now it has ~124K miles. ...
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I think another critical factor, not often calculated, is the cost of insurance for the "new" rig. Collision component repair costs in time and materials for new vehicles is just outrageous...just go to your nearest part store for an OEM part on a newer vehicle and you'll faint. Check out newer OEM body panel costs and you'll have a stroke.
Next, you add in a new truck loan for 65K (assuming no down payment) with a term of 5yrs, a competitive interest rate of 2% and you come up with a monthly payment of $1139.30. Then, add in a 5-10K depreciation in value right after you drive it off the lot and you're immediately "upside down"--you owe more on the truck than its worth resale. Next, if its a not a "daily driver" that's a serious outlay (notice I did not say investment) sitting idle collecting moss and rust as these thing break when not operated frequently.
So, for me I try to look at all the variables because its so easy to get trapped looking at just "improved" fuel mileage. Add it all up and your "recoup" cost is way way down the road. Just my thoughts.....
Next, you add in a new truck loan for 65K (assuming no down payment) with a term of 5yrs, a competitive interest rate of 2% and you come up with a monthly payment of $1139.30. Then, add in a 5-10K depreciation in value right after you drive it off the lot and you're immediately "upside down"--you owe more on the truck than its worth resale. Next, if its a not a "daily driver" that's a serious outlay (notice I did not say investment) sitting idle collecting moss and rust as these thing break when not operated frequently.
So, for me I try to look at all the variables because its so easy to get trapped looking at just "improved" fuel mileage. Add it all up and your "recoup" cost is way way down the road. Just my thoughts.....
