New Truck or New-ish Truck?

[oppermancjo]

I've recently begun employment as a car salesman, Sales Consultant if you would like to be PC... I work at a Dodge/Chrysler dealer in Frankenmuth and have found myself itching to make a purchase. Before starting here, my opinion of leasing was very negative. Now that I understand it a little better, it's not as negative as it used to be but I'm still not completely sold on it.

So here's where I'm going with this. I can lease a brand new Ram 1500 Crew Cab for a very cheap monthly payment or I could consider purchasing a used truck. The monthly payment on the lease will be much lower than buying but I'm afraid that I will want to actually use the truck like a truck! Lease companies typically frown upon dents, scratches, etc... that will almost surely result from my work in the field and woods.

What do you guys think? I have a wood hauler currently but it's only 2 wheel drive. It gets me by but not in the Spring...

I think I have already talked myself into one way over the other but wanted some external input.

Thanks!

P.S. If you are looking for a truck, hit me up!

 

[3fordasho]

I bought my 92 F150 in 1996 with a 100k miles. The body was pristene up until about 2007 when I started my wood gathering hobby.
Now it has 50+ minor dents inside and outside the box and cab and one spot where I turned into a stump in the cab corner. The sides are now completely scratched up from buckthorn.... The wood hobby is real tough on the cosmetics of a truck and no way would I consider using something new or close to it.

 

[Rudedog]

I would work at your new job very hard and make as much money as I could. Then I was save that money until I had three months worth of living expenses as an emergency fund in the bank or money market fund. Once that was accomplished I would then I would set aside all of the extra money I earned after monthly bills are paid into my truck fund. When you get enough in the truck fund then I would buy the truck in cash. I would never lease a truck and I would rather buy a truck that is at least two years old or more. I drive a '99 Chevy. I'd like to get a better truck but this truck still runs well and is paid for. The point is I'd like to be a guy that is driving a truck that fits my needs and saving my money to become a wealthy guy. I don't be;ieve in becoming a slave to a lease and payments. There are many other AS members that know a crap load about trucks and could steer you in the right direction when it comes to truck deals. Plus, once you become a seasoned member of the sales team you will find that people will trade in vehicles and you could get a great deal on a used truck that your dealership is going to send to auction.

 

[Truck4]

I leased/bought a new F150 back in 96, Started out leasing it, with the amount of equity I had in my trade in my payments were only ~$150 a month, I was single back then and making good money so I thought ahead, I opened a saveings account at my bank and each pay day was able to put $200 in there, at the end of the lease (3 yrs) I had almost enough saved to buy it!! ended up borrowing like $2000.00, I worked with the same bank for the loan, the loan officer was impressed on what I had done that there was no problem with the loan, I kept my payments at the $400 I was putting in savings each month and had it paid off!!! in less than 6 mths

On a side not here soon I will be looking for a ~2003-07 3500 4x4 mega cab(yes I know later yr) manuel, with the cummins, under 100K, anything like that up that way?

 

[oppermancjo]

Great points by Rudedog and Truck4. I have been working with a Dave Ramsey mindset to save up some money. Unfortunately, I have a hefty student loan debt to get rid of first and that's going to take a while... I have been leaning more toward the used truck option. The point was made that I can cherry pick from what comes in and that is correct. The used car market is very high right now though so it's not really the best time to buy a used car. The pressure to lease has come from the other sales guys. They all lease so I guess that's why I'm even considering it.

Whenever the new purchase happens, I will make sure I post pics for you!

 

[dingeryote]

Opper.

The problem with a leased truck is you do NOT own the truck. Trucks used for what Trucks are intended for, results in the true owner charging you a boatload of $$$ you yourself would never pay to repair the "Wear marks" and return the truck to "Car condition" standards on turn in.

It's not a problem for city folks and urban cowboys, that might haul a sofa and a few bags of mulch now and then, but chucking rounds in and out of the bed and driving around in the woods WILL leave a "Patina", not to mention the stains, tears, and perma-sap in the interiors that aren't designed to deal with anything near real working conditions anymore.

Leases make sense to your fellow salesmen. Ask them how often they get in thier truck forgetting a scrench in thier back pockets?
Better yet, shake thier hand sometime. I'm willing to bet most of 'em have never stood in mud, let alone played in it.

Cherry pick a good used 4X4 and pay cash. You'll be $$$ ahead.

Stay safe!
Dingeryote

 

[zogger]

I would work at your new job very hard and make as much money as I could. Then I was save that money until I had three months worth of living expenses as an emergency fund in the bank or money market fund. Once that was accomplished I would then I would set aside all of the extra money I earned after monthly bills are paid into my truck fund. When you get enough in the truck fund then I would buy the truck in cash. I would never lease a truck and I would rather buy a truck that is at least two years old or more. I drive a '99 Chevy. I'd like to get a better truck but this truck still runs well and is paid for. The point is I'd like to be a guy that is driving a truck that fits my needs and saving my money to become a wealthy guy. I don't be;ieve in becoming a slave to a lease and payments. There are many other AS members that know a crap load about trucks and could steer you in the right direction when it comes to truck deals. Plus, once you become a seasoned member of the sales team you will find that people will trade in vehicles and you could get a great deal on a used truck that your dealership is going to send to auction.

What you said ^^ on the tradeins. Pick of the deals there, plus the techs will give him a go/no go on it if he asks perty and is liberal with the brewski consultation fees..

 

[dingeryote]

What you said ^^ on the tradeins. Pick of the deals there, plus the techs will give him a go/no go on it if he asks perty and is liberal with the brewski consultation fees..

A dozen dude flowers to have the head wrench in the shop go elbow deep in the thing, and check on all the recall updates etc. is worth it.

Gotta agree.

Lotsa horsey tweedy folks trade in 3/4 tons that have only highway miles, and barely have hauled anything.
Lotsa folks are dumping thier daily driver suburban Cowboy trucks as well, and re-sale is down because of MPG's.

Just no reason to dump cash in a hole you'll never get back, and not be able to wring every last drop out of.

Stay safe!
Dingeryote

 

[brenndatomu]

I would work at your new job very hard and make as much money as I could. Then I was save that money until I had three months worth of living expenses as an emergency fund in the bank or money market fund. Once that was accomplished I would then I would set aside all of the extra money I earned after monthly bills are paid into my truck fund. When you get enough in the truck fund then I would buy the truck in cash. I would never lease a truck and I would rather buy a truck that is at least two years old or more. I drive a '99 Chevy. I'd like to get a better truck but this truck still runs well and is paid for. The point is I'd like to be a guy that is driving a truck that fits my needs and saving my money to become a wealthy guy. I don't be;ieve in becoming a slave to a lease and payments. There are many other AS members that know a crap load about trucks and could steer you in the right direction when it comes to truck deals. Plus, once you become a seasoned member of the sales team you will find that people will trade in vehicles and you could get a great deal on a used truck that your dealership is going to send to auction.

^^^+1 what he said. One of my past jobs was selling vehicles at a Ford store. They pushed leasing very hard and made us give EVERYBODY "the spiel", After I was there for a while I got to see first hand why leasing was a bad idea for 95% of our customers. I would never lease, and I had a real problem with shoving it down customers throats. :msp_mad: That was one of the reasons that I left to work for a friend at a used truck lot, much better fit for me! You'll be able to "cherry pick" a sweet trade in if you just sit back, relax, educated yourself on the market for the type of truck you might want, save up your money, and then, when the deal of the year comes in....BAM, you just picked up a nice ride for a great deal! Don't lease a new truck, especially a wood hauler, you'll regret it. Leasing is for businesses and wealthy people that get a new car every year or two anyways.

 

[blackdogon57]

Only lease if you intend to buy out the lease at the end of the term. Sometimes there are amazingly low lease rates out there.

 

[Mac88]

I have only leased one vehicle in my life. A '97 S-10 5-speed 4.3 4-by. I bought it after the lease was up. Waaay expensive. I really liked that truck, or I would have turned it in. My current wood hauler? A '99 Diesel Super Duty, flat bed 1-ton. It looks pristine, for a '99. I don't take it in the woods, but it hauls anything I want it to. So, no, I wouldn't use a lease truck for a wood hauler.

 

[stihl023/5]

New is over rated and lease is a better term for rent. (not rent to own either) Save some money pay cash and owe no one. Granted its not new might need a part or two along the way, but it is yours and you have no payment. Besides warranty now days only go as far as the fine print novel!

 

[stihly dan]

Older is better, cost of parts are a fortune on the newer trucks, and the jap one's.

 

[Jim Timber]

If you're hauling wood for profit, you can write off the entire lease payment as an expense and save 20+% on your income taxes for that money - it might make it worth the turn-in fees at the end of the lease. Mileage penalties are usually horrific too, so there's a disincentive to drive the thing built into the agreement.

If you want a wood hauler, get a beater that's mechanically sound and continue treating it accordingly. Something that's been whacked, but didn't bend the frame would be perfect: little if any depreciation to worry about and usually can be purchased cheap.

My daily driver (15K miles a year) is a '00 tahoe 4x4 that I bought with 174K - it's now at 216K and I've done ball joints and front wheel bearings, and the oil changes every 5K. If I bounce it off a tree, I don't even think twice. Not caring is a huge liberation of your mental state in traffic too.

 

[Streblerm]

I used to fix cars for a living and personally I would never lease or buy new. I seriously considered buying a new van for my wife and keeping it for a good long time. I was able to buy and fix a 5yr old van to nearly new condition for $5000. I would have had to put that down on a lease or purchase and then had a payment for the next 3-5 years. I'll keep this van for 5 years or so. I will maintain it, anything it ever needs. In 5 years it will still be worth $3000 or so. Even with the cost of maintenance the car probably wont cost me more than $100 a month over 5 years. No lease or payment will cost you that little. It cost whoever bought my wife's van new over $30,000 to drive it for less than five years. Even if I have to put a motor and transmission in it while I own it, my cost of ownership will be less than 1/3 of buying new.

If I were you, I would watch the trade ins for a late model (5yrs or newer) truck with lots of miles on it. It will need some maintenance for sure but at least you won't have to eat all the depreciation. Newer cars with high miles tend to be highway driven and that isn't hard miles. Let the suckers spend all their hard earned money on their cars. I have friends who spend as much or more on car payments as I do on my house. Sure, they can say "look at my fancy new car" but it is only new for a little while and then it is used, just like mine.

If you can afford new and that is what you want then more power to you. If driving is your job or business and the vehicle cost is deductible then good for you. If your just an average person who needs to get from point a to b then don't let "them" convince you that you "need" a new car.

My wood hauler/transportation is a 1995 f150. I will keep using it until it can no longer safely be fixed/driven. Does it impress other people? no. Do I care? no. I just laugh quietly all the way to the bank.

 

[MofoG23]

Older is better, cost of parts are a fortune on the newer trucks, and the jap one's.

Yep, I have a 1976 Chevy K20 as my wood hauler. Simple, built like a tank, paid for and LOW operating/repair costs. MPG are not that bad actually...around 11-12mpg hauling wood on the highway.

Best part is that if I scratch the paint or bump a fender while in the woods, I really don't care too much.

 

[mga]

the first negative is......it's a dodge.

if you plan on using that leased truck to haul wood or anything of the sort, keep in mind that you get limited mileage per year and once the lease is over with, you have to pay for any damages or simple wear...ie: tires

buying a brand new one is a no-no according to any financial adviser: you buy car/truck "A" for $30,000 and finance it for "X" years. once you put the keys in that vehicle and drive it off the lot, you just lost 5 to 10,000 on that vehicle because it is now considered as being "used".

but....you are still making payments on that 5 to 10 grand for the next "X" years.

buy a demo or a used one that is one year old. you still get the warranty and you get a good price. so what if it has 5 or even 10,000 miles.

 

[Walt41]

Buy junk for cash and put your money into income property so twenty years from now you are independent while all your buddies who drove fancy new vehicles are pulling 60 hr weeks.

 

[gr8scott72]

Great points by Rudedog and Truck4. I have been working with a Dave Ramsey mindset to save up some money. Unfortunately, I have a hefty student loan debt to get rid of first and that's going to take a while... I have been leaning more toward the used truck option. The point was made that I can cherry pick from what comes in and that is correct. The used car market is very high right now though so it's not really the best time to buy a used car. The pressure to lease has come from the other sales guys. They all lease so I guess that's why I'm even considering it.

Whenever the new purchase happens, I will make sure I post pics for you!

The Dave Ramsey mindset and a new vehicle don't go together. The Dave Ramsey mindset and LEASING a new vehicle REALLY doesn't go together!

Save up. Pay cash. They drive better when they are paid for!

 

[Jim Timber]

I don't buy new either. My bmw '97 540i was sold new for $52,000. I bought it 9 years later for 8K, then sold it 3 years after that for $6500. People thought I was a baller, when in reality it was my "economy car." I'd had a 325i about 6 years prior and drove the piss out of it with very little maintenance costs. When you look at the parts prices and what breaks on them, it's just as expensive driving a honda as it is a bmw - which would you choose? I'll take the bimmer!

Instead of driving things 'til the wheels fall off, you can get out of them when they still haven't fallen off that "cliff" and take the money out of it to invest in something else. My 540 was about to bloom in rust bubbles, so I sold it before that happened. If I hadn't, it would be worth about $2500 and hard to sell. There was no question it would keep running long after it's resale value had vanished, and I wasn't about to keep a car like that around for my kid to drive (285hp with a top speed of 155): HELL NO! So I got out.

My tahoe probably never would be worth much now. I'm hard on it, so I'll keep it going til I get a wild hair to upgrade. I don't expect to ever sell it, at least not before it hits a deer anyway. I can replace anything that can break (short of the frame) for less than 3 months car payments. If my engine goes - it's about 1K for a bone yard replacement. Tranny is about 1200 for a rebuild, or 3-700 for a used one. Those are one-time expenses, short term debt if you have to pay credit for them. Not a boat anchor you're tied to for the next 3-6 years.