How do you justify a new truck every 2-3 years?

outrag1 · January 14, 2019

2 hours ago, Sierra Dan said:

One other factor to consider is time spent out of the game.

While I and most people probably prefer not having a car or truck payment, the longer you wait before getting into

a new one, the more sticker shock you will have whether brand new or low mileage used.

Keeping a vehicle longer also eventually turns into more maintenance as it ages.

So at some point there is a sweet spot on staying into a newer vehicle.

This is exactly what I was trying to convey in my lengthy post, however Sierra Dan was much more concise. I agree with this philosophy.

KARNUT · January 14, 2019

I guess interpretation and perception is the key here, you see the question as an opportunity to give advice and how to buy outdated phones and 10 year old Buicks and how thrifty your lifestyle is, and correct me if I a wrong, but the OP was only asking about a truck. I see the other side of the coin, as where you see settling is better, I say enjoy life, do things that put a smile on your face and do not worry about the little things like saving a few dollars if you are in a position where it does not make a difference. Which I would say describes the OP, or else he would have not created the post.

I didn’t read it that way. Outdated phones, 10 year old Buick’s is a stretch. I read maybe you don’t need all the bling, maybe take a deal save some money have two rides. I did some of the same and retired at 58 much like him. My biggest problem is deciding which of the five rides I’m driving today. Sports car, sports sedan, hot rod truck, etc. Much better than driving a high country to work at after the age of 65.

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JimCost2014 · January 14, 2019

5 minutes ago, KARNUT said:

I didn’t read it that way. Outdated phones, 10 year old Buick’s is a stretch. I read maybe you don’t need all the bling, maybe take a deal save some money have two rides. I did some of the same and retired at 58 much like him. My biggest problem is deciding which of the five rides I’m driving today. Sports car, sports sedan, hot rod truck, etc. Much better than driving a high country to work at after the age of 65.

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I do like your take on it better, it seems like a lot of the "advice opinions" are geared more towards people justifying what they have rather what the OP is looking to do. Did not mean any ill will in my comments.

KMGZ400 · January 14, 2019

On 1/13/2019 at 11:09 AM, OnTheReel said:

Thought this could be a fun thread.

So I’m at a crossroads with my 2016 Sierra. Frankly I’m just not happy with the truck anymore. It has just over 25k miles and I have had it for about 2.5 years. It was just in for service and the tires are at 6/32 and will probably need replacement if I keep it for another 6 months. Same for the front brake pads. Lots of city driving.

So right now I’m looking at just trading it in before it needs any major things and while it’s still under warranty and theoretically worth more. I can get an ‘19 LTZ CC 6.2 for about 7% off sticker. I know that waiting longer will bring better deals but I’d also lose more on my current truck. It’s completely paid off and worth about 25k average trade-in at the moment.

I think it makes perfect sense to make the move now, and I could theoretically pay cash for the new truck...but I still have the “penny pincher” in the back of my mind from when I used to be poor saying it’s a waste to only get 2 or 3 years out of a brand new truck.

Wondering how some fellow “new toy lovers” deal with the internal struggle, and justify the deal to friends (and spouses) who may raise an eyebrow at getting something new so often, even though your income can support it.

if you dont enjoy the truck, I would get rid of it if it financially makes sense. there's no reason to create financial burden if you dont need to. If you get the truck you want you would possibly be less inclined to get rid of it so quickly, I dont like keeping vehicles for over 3 years but my current truck I have had for 5 years and while I really want a new one I enjoy my truck and have not had any issues with it, as well as enjoying having it paid off!

KARNUT · January 14, 2019

I do like your take on it better, it seems like a lot of the "advice opinions" are geared more towards people justifying what they have rather what the OP is looking to do. Did not mean any ill will in my comments.

Some of us old folks can’t help pointing out alternatives. I read an article the other day most people retire with less than 100K in the bank. Just a little money in an IRA early in life makes a difference. Just one less loaded Denali in your 20s would do it.

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Z45 · January 14, 2019

I have been buying a new truck every 3-4 yrs and wait for the close-out deals. I either pay cash or if 0% is offered, will take that but pay off b4 buying new. Why? Because I can.

Some I bought because I did not like it or was having problems and decided to get rid of it for a better model.

Had

1987 Chevy

1988 Chevy

1989 Chevy

1992 Chevy

1996 Chevy

1999 GMC fed up with Chevy dealer service dept

2001 GMC

2004 GMC

2008 GMC

2010 GMC

2012 Denai

2015 Denali

2017 Denali

JimCost2014 · January 14, 2019

8 minutes ago, KARNUT said:

Some of us old folks can’t help pointing out alternatives. I read an article the other day most people retire with less than 100K in the bank. Just a little money in an IRA early in life makes a difference. Just one less loaded Denali in your 20s would do it.

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I totally get what you are saying, my wife and I have lived in the same house now 25 years (our first house purchase), instead of buying the Denali's when we were young, we bought real estate for our future. I guess my long winded point is, some replies come off with a "holy than thou" response in them and just do not seem relevant to what the poster is really asking. I will always be the first to tell you that I am not an expert in many (if any) things, and I am not going to try and shove my views or opinions down anyone's throat.

Edited January 14, 2019 by JimCost2014

KARNUT · January 14, 2019

I totally get what you are saying, my wife and I have lived in the same house now 25 years (our first house purchase), instead of buying the Denali's when we were young, we bought real estate for our future. I guess my long winded point is, some replies come off with a "holy than thou" response in them and just do not seem relevant to what the poster is really asking. I will always be the first to tell you that I am not an expert in many (if any) things, and I am not going to try and shove my views or opinions down anyone's throat.

Understand, good move on the real-estate. We did the same.

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OnTheReel · January 14, 2019

Wow, thanks everyone for the inputs. I see there’s certainly a few different viewpoints. As you could probably tell, I sort of had my mind made up already but did want to hear where other people stand. I knew from being around the forums for awhile a lot of people tend to not hold on to their trucks very long and was interested in the reasoning. There’s no right or wrong answers as everyone’s finances are different.

Personally, I’m going to be 31 this week so I’m just entering my peak earning years. Obviously things can change but I do have a decent nest egg squirreled away and I’m not frivolous at all. I certainly don’t stretch myself beyond my means. When I bought the ‘16, I put a huge amount down and had a loan for the balance of about $12,000. I could have just bought the whole thing outright but a loan at 2% was not hurting me and if nothing else just helping my credit. I have that now paid for and am in a similar situation for the next one only this time I do have a lot of equity in the 2016 and more savings as well. I will likely wind up financing about $20,000 on this one as I would plan on keeping it four years or maybe longer.

The ‘19 I’ve got my eyes on is about $20,000 more than my 2016 cost me but as I see it, so long as I have the ability to pay it off ‘if the crap hits the fan’ I won’t be uncomfortable with the loan balance. I know some people would rather not have it at all but I do like having liquid assets even if it’s sort of designated for the truck anyway.

I’ve got an appointment Thursday to look at it and see where I stand with my trade. I’ve got a good relationship with the dealer but if I feel I’m getting beat up on either the trade or the new truck’s price I will definitely walk, as I know by August these trucks will be a lot cheaper. ?

DirtyMarcus · January 14, 2019

To answer the original question, if my vehicle starts giving me trouble and I dont feel its worth it to hassle with repairs I will get a new one. Thats only been the case twice in my years of buying vehicles. Generally I keep my vehicles for 6-8 years. My '14 is 10 months away from being paid off and Im only at 56k miles. I will likely be keeping it for 4-5 more years unless we purchase a 5th wheel. My plan for my next vehicle is to save what im currently paying monthly and either paying off a sizable chunk right off the bat or paying for it outright......no payments. If I can do that once I will be in a better place down the line if I end up feeling the need to trade up every 2-3 years.

JimCost2014 · January 14, 2019

9 minutes ago, OnTheReel said:

Wow, thanks everyone for the inputs. I see there’s certainly a few different viewpoints. As you could probably tell, I sort of had my mind made up already but did want to hear where other people stand. I knew from being around the forums for awhile a lot of people tend to not hold on to their trucks very long and was interested in the reasoning. There’s no right or wrong answers as everyone’s finances are different.

Personally, I’m going to be 31 this week so I’m just entering my peak earning years. Obviously things can change but I do have a decent nest egg squirreled away and I’m not frivolous at all. I certainly don’t stretch myself beyond my means. When I bought the ‘16, I put a huge amount down and had a loan for the balance of about $12,000. I could have just bought the whole thing outright but a loan at 2% was not hurting me and if nothing else just helping my credit. I have that now paid for and am in a similar situation for the next one only this time I do have a lot of equity in the 2016 and more savings as well. I will likely wind up financing about $20,000 on this one as I would plan on keeping it four years or maybe longer.

The ‘19 I’ve got my eyes on is about $20,000 more than my 2016 cost me but as I see it, so long as I have the ability to pay it off ‘if the crap hits the fan’ I won’t be uncomfortable with the loan balance. I know some people would rather not have it at all but I do like having liquid assets even if it’s sort of designated for the truck anyway.

I’ve got an appointment Thursday to look at it and see where I stand with my trade. I’ve got a good relationship with the dealer but if I feel I’m getting beat up on either the trade or the new truck’s price I will definitely walk, as I know by August these trucks will be a lot cheaper. ?

Good luck, post pictures, whether it be with your new truck, or you saluting them as you walk off of the lot!

JimCost2014 · January 14, 2019

3 minutes ago, DirtyMarcus said:

To answer the original question, if my vehicle starts giving me trouble and I dont feel its worth it to hassle with repairs I will get a new one. Thats only been the case twice in my years of buying vehicles. Generally I keep my vehicles for 6-8 years. My '14 is 10 months away from being paid off and Im only at 56k miles. I will likely be keeping it for 4-5 more years unless we purchase a 5th wheel. My plan for my next vehicle is to save what im currently paying monthly and either paying off a sizable chunk right off the bat or paying for it outright......no payments. If I can do that once I will be in a better place down the line if I end up feeling the need to trade up every 2-3 years.

Buying the truck "right" is the key to being able to finance and still be in good shape with the vehicle. It is not that hard to drive off the lot and be right side up on your equity.

DirtyMarcus · January 15, 2019

19 minutes ago, JimCost2014 said:

Buying the truck "right" is the key to being able to finance and still be in good shape with the vehicle. It is not that hard to drive off the lot and be right side up on your equity.

I know this, which is why I didn't need gap insurance when I purchased my current truck. However, not financing and investing that money would be much better than getting a good deal and still paying even .25% interest. I dont plan to be one of the many that "retires" with only 100k or less in the bank.

JimCost2014 · January 15, 2019

2 minutes ago, DirtyMarcus said:

I know this, which is why I didn't need gap insurance when I purchased my current truck. However, not financing and investing that money would be much better than getting a good deal and still paying even .25% interest. I dont plan to be one of the many that "retires" with only 100k or less in the bank.

You know that I was agreeing with you, right? I thought your game plan was good.

Edited January 15, 2019 by JimCost2014