old man advise, take it or leave it. I bought two new cars 7 years ago, and kinda regret it. I'm working on financial independance now, and could use an extra $13K in the bank.
-a new $40K truck at 1.5% for 48 will cost you $46685 (interest, PST/GST, $500 pdi)
-a 2012 Canyon will cost you $27K (assuming you "need" 4x4), total cost $33927 (assuming 5% loan)
The $13K difference invested over the life of you truck becomes $16K in 5 years, and $25K in 15 years.
Or, you can smell new truck smell for 6 months for that $25K you lose out on.
Alternatively, think of the lift kit you could install for $13K! :drool:
Yeah see this is a wonderful calculation you've put together. Unfortunately it has a few fatal flaws in my case.
For starters let's just leave tax out of the discussion for simlicity. And not pick on any brands, let's just simply talk numbers.
A new 40,000 dollar truck @ 1.5 for 48 months will cost me 41236. Which is 1236 in interest.
Your 2012 model @ 27000 @ let's take a conservative number of 6.25 for 36 months will cost me 29680. aka 2680 in interest.
Still a win right? 11,500 in change is huge! 28 or so percent?
If it's a 2012, I'll assume since were still in 2014 that it's only a 2 year old vehicle.
Given that the majority of trucks are owned by blue collar workers who likely commute I'll say on the conservative side of things it's drive 30-35k km per year. We'll come back to this.
My truck current has 155km on it. At 100,00 it was due for a major service ( both diffs, transmission, engine, plugs, wires, I had the batteries changed as one wasn't 100% and some belts. I think around 1500 dollars worth of work. It also was due for new rubber. 1600 dollars worth of nokians. At 135,000 km I did a front end on it. In most shops with would of been 2k or more. ( I have the quotes) In your equation you consider none of this. You just simply say it's used, and therefore it's cheaper.
I drive 50k per year. And I look at most trucks as a 200,000km "reliable" service life. Some trucks will run longer I will contest, but I'm paid to have a reliable good running truck. So if your truck has 70k on It would need to be ATLEAST 35% cheaper than new. That's without considering on a new truck I won't have to do any maintenance on the truck for well the first 100k. I mean I'm 70% of the way to spend 3500 or so on servicing/tires.
I'm failing to see how your two year old truck saves me a boat load of cash? All someone has done is depreciate it for me.
New truck, not that different of a payment, although it is a longer term, but for three years it'll be under warranty. I'm the original owner and know the history. I'm not trying to be a dick, but by my math, There's no way it's even half of the number you mentioned?
EDIT: you mentioned fuel. I don't care about fuel mileage at all.
