# Would you trade up?



## Home wood (Mar 8, 2014)

So I bought my 2013 gmc Sierra at the end of 2013.
Went for the 7 years @ 0% knowing that by the time it's paid off it will be a tired old girl in need of replacement. But I had full intension of keeping it.
Now three years into it the truck has 144,000km. It's due for tires and brakes if nothing else. Warranty is up at 160,000km.
I have a ding in box side, ding in back bumper, rip in the seat, and few other small issues. That said it is my personal truck as well as a work truck.
Now for the scoop
Dealer has offered me exactly what I owe on it. I can take it back and start fresh with a new truck new warranty.
New payment is a bit more per month partly because trucks have gone up but also because this one has a few more goodies over the last one.
But I would be getting it 10g under msrp with navi, and a new cap thrown in.

I'm pretty sure it's going to happen.


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## Anthill (Mar 23, 2013)

I was in the same position with my 13 Ram this spring; only with 105000 kms. Did the math and decided that the next 2 years would be my cheapest miles. It was tempting as the resale for used stuff was really good but a buddy told me that any time you improve something its going to cost more money somewhere. He was likely right for a lot of things. If I hadn't liked my present truck or if there had been any reason to upgrade besides just wanting to, I probably would have.


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## Home wood (Mar 8, 2014)

My three main reasons to upgrade. 
I use my garmin gps daily. It will be nice to have it built into the dash.
Back up camera. I hook up to one of my two trailers at least 5 time per week.
I ripped the seat sliding in and out so much. New truck has leather bolsters with cloth inserts. Should hold up better.

And well it's a new truck and who doesn't want a new truck.
The new one will also have.
Trailer bake control built in
Heated seats
Better hands free system
Led bed lighting

All nice features that I don't have now.
Only down side is more cost per month and need to have branding stickers installed / more cost.


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## Jaws (Dec 20, 2010)

Home wood said:


> So I bought my 2013 gmc Sierra at the end of 2013.
> Went for the 7 years @ 0% knowing that by the time it's paid off it will be a tired old girl in need of replacement. But I had full intension of keeping it.
> Now three years into it the truck has 144,000km. It's due for tires and brakes if nothing else. Warranty is up at 160,000km.
> I have a ding in box side, ding in back bumper, rip in the seat, and few other small issues. That said it is my personal truck as well as a work truck.
> ...


I fully expected to have a truck payment forever, I like late model trucks with the conveniences. Mine is a 2012 model, paid for beginning of this year. I like not having a payment , but it's got 201k on it. Maybe another year. 

If you dont mind the payment I'd do it.


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## KAP (Feb 19, 2011)

Home wood said:


> So I bought my 2013 gmc Sierra at the end of 2013.
> Went for the 7 years @ 0% knowing that by the time it's paid off it will be a tired old girl in need of replacement. But I had full intension of keeping it.
> Now three years into it the truck has 144,000km. It's due for tires and brakes if nothing else. Warranty is up at 160,000km.
> I have a ding in box side, ding in back bumper, rip in the seat, and few other small issues. That said it is my personal truck as well as a work truck.
> ...


If it's another 0% deal, and he's making you whole on the previous, it's a no-brainer IMHO... you'd be saving each month for it anyway (and with 0% makes that meaningful), and now you have a new warranty so no putting money out for an extended warranty or repairs over the next couple years, and as a bonus, you'll have an asset at the end to trade in... 

Enjoy it... :thumbsup:


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## hdavis (Feb 14, 2012)

Don't ask me, I run them until they drop, then whip them a couple more years. I expect to get north of 300K on a decent truck, if it doesn't rust out first.

OTOH, I've never had a vehicle payment in my life.


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## EricBrancard (Jun 8, 2012)

I thought I'd always have a payment as well. I haven't had one since 2010 now and I don't really think I want one again. The Dave Ramsey thing of saving up to buy a vehicle instead of financing it always sounded stupid to me. Well, it doesn't sound as stupid to me anymore.


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## FrankSmith (Feb 21, 2013)

Chart out your monthly payment start and stop dates, anticipated repairs, pay off date, resale value. If there is a way to spend a lot less to drive over a ten year period do it. If its a wash enjoy the new truck.


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## Peter_C (Nov 26, 2014)

Trade ins NEVER make sense. You can make/save thousands selling it on your own. Sell your truck, then negotiate a good price on a new vehicle. Perform all negotiations by email.


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## Inner10 (Mar 12, 2009)

EricBrancard said:


> I thought I'd always have a payment as well. I haven't had one since 2010 now and I don't really think I want one again. The Dave Ramsey thing of saving up to buy a vehicle instead of financing it always sounded stupid to me. Well, it doesn't sound as stupid to me anymore.


In Ontario they are an open loan, and the financing rates are incredibly low. A vehicle is one of few things that it actually makes sense to finance.



Peter_C said:


> Trade ins NEVER make sense. You can make/save thousands selling it on your own. Sell your truck, then negotiate a good price on a new vehicle. Perform all negotiations by email.


Sure they make sense, if you live in an area with a high consumption tax. In Ontario there is a 13% consumption tax, so when I buy a 10K truck I'm actually paying 11300. If I trade that truck in with a residual value of 5000 against a new one at 10k I'm only paying tax on the residual 5K. If I were to sell it privately I would have to sell it at 5650 or higher.


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## Ohio painter (Dec 4, 2011)

Enjoy that new truck.


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## Warren (Feb 19, 2005)

EricBrancard said:


> I thought I'd always have a payment as well. I haven't had one since 2010 now and I don't really think I want one again. The Dave Ramsey thing of saving up to buy a vehicle instead of financing it always sounded stupid to me. Well, it doesn't sound as stupid to me anymore.


Lucky for me, I figured this out 30 years ago. I financed one vehicle 30 years ago, and payed it off after 3 months due to not wanting the high insurance payment. I started off with clunkers, but now I can drop 10-15k on a 4 year old vehicle and drive it for 6 or 7 years.

You are actually saving a lot of money in insurance as well. When your younger, full coverage can cost as much as a car payment. Typically now, I will buy the vehicle and keep the full coverage for about 2 years. At that time, my math tells me I am better off saving the insurance dollars, since the car now has 150k or more miles, and the payoff if a total loss, would be small.


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## EricBrancard (Jun 8, 2012)

Warren said:


> Lucky for me, I figured this out 30 years ago. I financed one vehicle 30 years ago, and payed it off after 3 months due to not wanting the high insurance payment. I started off with clunkers, but now I can drop 10-15k on a 4 year old vehicle and drive it for 6 or 7 years.
> 
> You are actually saving a lot of money in insurance as well. When your younger, full coverage can cost as much as a car payment. Typically now, I will buy the vehicle and keep the full coverage for about 2 years. At that time, my math tells me I am better off saving the insurance dollars, since the car now has 150k or more miles, and the payoff if a total loss, would be small.


My first new Truck was a 2002 Silverado when I was 19. Monthly payment was $347.52. Monthly insurance payment was $500 :laughing:


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## Home wood (Mar 8, 2014)

Out with the not so old in with the new.
Of course with all the snow it didn't look new when I got home.


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## AustinDB (Sep 11, 2006)

its tough going into the dealer seeing a bunch of pretty new vans but it sure is nice not having payments. 

The new Ford's are making it hard lol


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## Jaws (Dec 20, 2010)

Warren said:


> Lucky for me, I figured this out 30 years ago. I financed one vehicle 30 years ago, and payed it off after 3 months due to not wanting the high insurance payment. I started off with clunkers, but now I can drop 10-15k on a 4 year old vehicle and drive it for 6 or 7 years.
> 
> You are actually saving a lot of money in insurance as well. When your younger, full coverage can cost as much as a car payment. Typically now, I will buy the vehicle and keep the full coverage for about 2 years. At that time, my math tells me I am better off saving the insurance dollars, since the car now has 150k or more miles, and the payoff if a total loss, would be small.


If it's been a good year & you buy your trucks through your company it can knock your tax bracket down enough to make the truck significantly cheaper. It would of lost me money to pay cash for my new tractor w/backhoe & attachements at 0% interest. Better off leaving that money for operating capital and just making a significant down payment.


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## Warren (Feb 19, 2005)

Jaws said:


> If it's been a good year & you buy your trucks through your company it can knock your tax bracket down enough to make the truck significantly cheaper. It would of lost me money to pay cash for my new tractor w/backhoe & attachements at 0% interest. Better off leaving that money for operating capital and just making a significant down payment.


During a good year, you could pay that backhoe in cash and use a 179 deduction to bring the taxes lower. I did this a few years ago when I bought the forklift. As for the vehicles, I routinely drive about 20k miles each year, and take the mileage deduction. At 54 cents per mile, this gives me a mileage deduction of $10,800.00. Not to mention, I do not have to track all of my expenses, I just need to document the mileage.

Those 20k miles cost me about about $2600 in gasoline this year, if you figure my mileage at 16/gal, and gas at around $2. Throw in some tires and a few oil changes, and I am still at less than $3500 of actual expenses. This puts me at a plus $7300 non taxable. Try doing that same math when you have a $700 per month payment, and you will not do anywhere near as well.


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## Jaws (Dec 20, 2010)

Warren said:


> During a good year, you could pay that backhoe in cash and use a 179 deduction to bring the taxes lower. I did this a few years ago when I bought the forklift. As for the vehicles, I routinely drive about 20k miles each year, and take the mileage deduction. At 54 cents per mile, this gives me a mileage deduction of $10,800.00. Not to mention, I do not have to track all of my expenses, I just need to document the mileage.
> 
> Those 20k miles cost me about about $2600 in gasoline this year, if you figure my mileage at 16/gal, and gas at around $2. Throw in some tires and a few oil changes, and I am still at less than $3500 of actual expenses. This puts me at a plus $7300 non taxable. Try doing that same math when you have a $700 per month payment, and you will not do anywhere near as well.


New vs old you are correct, makes a lot more sense financially to buy pre owned probably. Buying new can bring more conveniences and be less of a hassle with maintenance, but if it's a solid pre owned makes more sense financially probably. 

If your buying new no matter what it's a no brainer to take the 0% interest, it's free money. Having that money in my operating account is better for my business and peace of mind than paying cash and skipping 0%. 

Tax deduction alone for me paid for a third of the piece of equipment, and I get free service and a warranty for several years.


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## hdavis (Feb 14, 2012)

Everyone's decision can be a little different, not the least of which is a person's desired financial risk profile. If the reward is there vs other options it's a no brainer.


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## blacktop (Oct 28, 2012)

CHIT! I thought this thread was about women !!


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## hdavis (Feb 14, 2012)

Could be. It still boils down to your financial risk profile....


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## Deckhead (Dec 9, 2010)

Maybe it's just me but I don't mind driving some 8 year old truck that some fire chief drove back and forth to car accidents for 60k miles so long as the price is right. Love me a good auction and a beat up inside with solid mechanicals. I really REALLY hate having debt.

Car payments just bother me. Hell, equipment payments bother me. I was told a long time ago, every dollar you borrow is a doar twenty-five you are forced to make. His point was stress not interest, when it's free and clear if things got real slim, you have an asset that can be sold if you owe on it, it's one more liability.

Some of you guys are good businessmen though and understand how to juggle and make all that work in your favor. I just know if I cut wood and don't owe anyone anything, life is a lot easier for me and the whole name of my game is low working overhead, so it's used and gets abused as long as when a check clears, it's mostly goes into the company coughers.


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## EricBrancard (Jun 8, 2012)

Deckhead said:


> it's mostly goes into the company coughers.


You work with a lot of smokers? :laughing:


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## hdavis (Feb 14, 2012)

EricBrancard said:


> You work with a lot of smokers? :laughing:



Must be some expensive smoke if the whole check goes there...


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## Home wood (Mar 8, 2014)

Don't get me wrong this is the only one I have payments on.
My work van is older and paid for 2010 gmc 2500. It's for an employee company truck. I would not finance for an employee to drive work vehicle.
My wife's mini van is 2008 Chevy and I would not finance a van for wifey to put around and take kids to school.
My Harley and my Cobra roadster both, no payments on toys.
As for my truck it's a company expense, bring the taxes down, and @ 0% and no down it's free money I can keep as operating capital and just pay monthly.
Trade in once the debt and trade value equal out.


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## blacktop (Oct 28, 2012)

I'm thinking about giving my son my 06 silver and buying an old clunker to scoot around in


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## Warren (Feb 19, 2005)

I just don't get paying $700 a month forever, and never actually owning anything. If you are just more comfortable driving something newer, I can accept that, but to me, the math does not add up to the "free money" that some are proclaiming.


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## Peter_C (Nov 26, 2014)

My friend buys a new truck himself, then leases it to his company. There are lots of tricks if you have the right accountant. Not uncommon for businesses to show a loss, after all employees get paid, and equipment/land depreciated.


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## Anderson (Sep 7, 2009)

Snap, Just picked this up yesterday cant go wrong with current deals got just over 10k off this one.


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## Jaws (Dec 20, 2010)

Warren said:


> I just don't get paying $700 a month forever, and never actually owning anything. If you are just more comfortable driving something newer, I can accept that, but to me, the math does not add up to the "free money" that some are proclaiming.


Really all depends on income and your priorities, right? 

This year I'm more comfortable not having any payments. Never paid 700 btw. 500 tops for 3 years was the worst for me for a work truck. Same for my wifes and hers was loaded and new


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## Deckhead (Dec 9, 2010)

I definitely don't think there's a one size fits all approach, it really doesn't solve any problems. Mine is due in part to 2 things, 1 is the way I run my business and the second is because I'm so hard on vehicles it'd be absolutely silly for me to buy a new one. For others it makes perfect sense. 

That being said I buy my wife the new stuff and me the functional. Any payment is just a hard pull to swallow for me.


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## Deckhead (Dec 9, 2010)

hdavis said:


> Must be some expensive smoke if the whole check goes there...


Crack... **** gets pricey:whistling


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## EricBrancard (Jun 8, 2012)

Jaws said:


> Really all depends on income and your priorities, right?
> 
> This year I'm more comfortable not having any payments. Never paid 700 btw. 500 tops for 3 years was the worst for me for a work truck. Same for my wifes and hers was loaded and new


My Tahoe was like $700+ for 60 months. And that's back when they were like a little over $50k loaded. I have no idea how people are spending $70-$80k on the new ones.


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## dayexco (Mar 4, 2006)

you really buy a GMC? 

their advertising lately looks like they're catering to the girly boys from NYC.


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## Deckhead (Dec 9, 2010)

dayexco said:


> you really buy a GMC?
> 
> their advertising lately looks like they're catering to the girly boys from NYC.


Duh, why do you think he bought one:laughing:


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## builditguy (Nov 10, 2013)

I used to keep all vehicles paid for. The last few years, I've bought newer and the business had a payment. 

For me, the trade off is maintenance. Having a newer, low mileage truck, requires less maintenance than an older truck. Generally speaking.

I like having a nice newer truck. I don't like payments, but that comes with the territory. For the most part I keep any payments to a minimum. Live by the rule, if I break a leg, how long can I survive. 
If I had alot of payments, not long.


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## Windycity (Oct 3, 2015)

builditguy said:


> I used to keep all vehicles paid for. The last few years, I've bought newer and the business had a payment.
> 
> For me, the trade off is maintenance. Having a newer, low mileage truck, requires less maintenance than an older truck. Generally speaking.
> 
> ...




I agree, it is so nice having older paid off vehicles but you have to factor the down time and the pain in the azz factor that a broken down vehicle always comes at the worst time work wise. 

Another thing i factor in is looking at the capabilities of the vehicle...some people only look at price but personally if i can spend a little bit more and get a vehicle that has more capabilities then i dont mind spending extra money on it. 

One thing I also consider is if you put a decent down payment on a vehicle when times get tough you could always sell it and usually walk away from it as opposed to losing it... so I look at the balance of having a paid off vehicle versus car payments in a way that if times get tough I'm in a decent financial position with the vehicle..

Used Trucks usually sell pretty quick 


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## BamBamm5144 (Jul 12, 2008)

I became sick and tired of driving others people junk. This year I bought two brand new Silverado trucks. One a basic work truck and the other a little more fancy for me driving around.

Factory warranties are great and I know everything that happens to them. I don't care much about the payments. It's either spend 45k in cash or spend $0 up front, finance it and pay 49k over 5 years.










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## Inner10 (Mar 12, 2009)

BamBamm5144 said:


> I became sick and tired of driving others people junk. This year I bought two brand new Silverado trucks. One a basic work truck and the other a little more fancy for me driving around.
> 
> Factory warranties are great and I know everything that happens to them. I don't care much about the payments. It's either spend 45k in cash or spend $0 up front, finance it and pay 49k over 5 years.
> 
> ...


After many years of driving old **** I got my first brand new set of wheels in 2007, since then I haven't had a vehicle over 4 years old. I kinda like driving new stuff.


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## SectorSecurity (Nov 26, 2013)

Just got my first ever new vehicle last year and I miss driving around in a paid off older model.

Next one I buy will be from a government auction as long as it wasn't used by the military.

I like having no payment and I'm not much of a car maintenance person 

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