Doing the MPG math on a new(er) truck

[mbloof]

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.

While admittedly there were some 'dark years' where we did not venture out much we are mostly weekend campers and live in Oregon where there are plenty of year around campgrounds not all that far from us.

Recently we've gotten back into the habit of one trip per month - rain, shine or snow we'll be out camping at least once a month.

I should mention that one of our 'house rules' is that we have to spend MORE time where ever we go than the time it takes to get there and back.

For weekend campers like us the above rule limits how far we go on any given weekend. While our lifetime yearly average on the truck is ~3000 miles per year at most we'll rack up 5000 miles a year with the short trips we do.

One of the obvious (and often used) arguments for upgrading a truck is the possible fuel savings. However in our case the argument that the upgrade will "pay for itself" won't fly in the short (or reasonable length time) term because of the low miles we put on the truck.

Here's a chart I came up with in attempts to justify a purchase to the OH:



Our old 351W averages ~6-10MPG per trip (depending on if we have headwinds going and coming home). I highlighted 8 and 16MPG as possible "targets" for MPG savings. Sadly (for me at least) in our case even with 100% improvement (likely not get) in fuel mileage we'd only see a savings of ~$1250.00 a year.

In our case the cost of newer truck/fuel savings per year = to many years to realize a return on our investment.

[WyoTraveler]

MPG calculations stresses me. Buy a new truck, throw the chart away and just enjoy your RVing. When I get fuel DW asks if I want her to calculate MPG. NOPE!!!! We just pay the bill. When the money runs out we'll park it.:B

[Oldtymeflyr]

A cost analysis almost never justifies a new truck.

If your truck is reliable then your decision is tougher.

If you want a new truck, buy one. The newer trucks maybe be "safer" but they are certainly more comfortable.

Good luck.

[Deb_and_Ed_M]

kohldad wrote:

The biggest factor with upgrading trucks would be the improved safety features. My current 2004 only has front air bags but my 2015 comes with front and side air bags. This was the biggest reason I went with new versus finding an older mid 90s F350 Crew Cab which I had before and loved.

I agree! We got caught in the infamous Ice Storm in Atlanta/N Georgia last January. Our 2012 F-350 2-wheel drive pulling 10,000# of 5er, with its stability and traction control (plus the brake controller ties into all that, too) - did awesome! Granted, I was still scared to death of being hit by an out-of-control vehicle, but being surrounded by airbags is comforting.

[NVR2L82AV8]

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.....

[bjbear]

The increased mileage savings are just things we tell our wives so we can buy a new truck. Nobody actually believes you could pay for a new truck on fuel savings alone!!

[Farmerjon]

We also don't drive our truck very many miles a year.
We bought our 2000 f350 diesel in 2002 with 78,000 miles on it and it now has 130,000. That is 52,000 over 12 years.Less than 5000 miles a year.
It gets 11 to 14 Mpg loaded with the camper and maybe 1 mpg less with the jeep or horse trailer in tow. It is trouble free and we are not worried about breakdowns.
Buying a new or newer truck can't be justified for expenses and our 2000 is in perfect condition and it is a comfortable truck.
That said I am 69 years old we are downsizing our farming operation and We can afford a new truck and it will be the last truck I will ever buy and so we got the truck I wanted with bells and whistles that are not needed but they are certainly nice to have.
We would never go into debt to get a truck but if you can afford it sometimes you don't need to justify it.
We haven't used it for hauling the camper yet but we have used it for some heavy loads of cattle and pulled over 20,000lbs of hay on the goose neck and it is an absolute joy to pull with it, we can't wait to get out with the camper on it. Come on spring.
Investment wise will we recover it? nope not even close, and we don't care.

[wildtoad]

At less than 5k miles a year, I'm not sure why one worries about MPG in the first place. If you have an itch for a new truck, then swap for and enjoy the newer truck, any improved MPG is a bonus. It's really difficult to justify a new vehicle when you have one paid for, that suits your needs (versus wants).

I won't need a new(er) mh this time next year, but I suspect I'll get one.

[Golden_HVAC]

Hi,

Can you ever "Justify" a motorhome or camper? Not really. Most of the time they do not 'save' money. In fact a friend pointed out that I was going to buy a motorhome with $700 a month payments for the next 15 years. He said that the $8,400 a year I was paying to purchase the RV would also pay for a nice trip to Hawaii or someplace else - if I did not buy the RV.


I love camping in my motorhome, and even though it is expensive, I do it.

You probably can not justify the new truck purchase on fuel savings. Perhaps if the transmission is going out, and you do not want to spend $2,000 to have it rebuilt, a newer truck might save some money. But once the transmission goes out, you either have to spend the money to repair and sell it, or sell it to the local junkyard, someone who can repair it at a deep discount, or something else.

Many times I have to tell customers that they can repair their old A/C unit again, or spend a little more to get a replacement. The new unit comes with a longer warranty, usually will consume at least 30% less power, and will last another 15 years. At some point, the new item is justified by repair savings.

However it is easy to justify not spending $1,000 to replace a A/C compressor and then buy a energy efficient unit that will save $150 per year, than to just say 'replace this working system for $4,500 and save $150 per year.' The extra $3,500 will save power and extend the warranty a long time.

Fred.

[kohldad]

When considering the diesel, you also need to adjust for high maintenance cost. And unfortunately, you won't see 16 mpg with even a new diesel. Also need to consider the cost of diesel is more expensive, right now running 25%-30% over gas.

The biggest factor with upgrading trucks would be the improved safety features. My current 2004 only has front air bags but my 2015 comes with front and side air bags. This was the biggest reason I went with new versus finding an older mid 90s F350 Crew Cab which I had before and loved.

[mdamerell]

Personally, mpg is low on my list of reason for a new truck. With all the EPA stuff on the new trucks, I'd get as many miles out of my old truck as possible. We typically run 3-5,000 miles a year. With new trucks running $65,000 I can easily put $10,000 into a "mini restoration" and come out years ahead of this game. The engine and drive train will outlast the body, so a little bodywork will keep me in truck for years to come.

[Cheyenps]

I've done the same sort of calculation on switching from a V-10 gas truck to a diesel.

At 25K miles/year the break even is so far out that it exceeds the likely service life of the truck, and that's without considering the additional cost of maintaining the diesel.

But I still want one.