What would DR do?

[rachelj]

Dh and I saw an ad for a brand new GM extended cab truck for $18Kish. Dh's current truck is a 98 GMC Sierra that he bought new and paid off early and doesn't have an extended cab. When he bought the Sierra, they were already pulling in tons of 99s so they were trying to get it off the lot. So, dh got the 98 Sierra for about $17.5K and it is not an extended cab. I told dh that when the time came to get a "new" truck that I wanted an extended cab so that all of us could fit in when necessary.

We were not really in the market for a new vehicle. This would be our "next vehicle to replace". As I said his truck is paid off. It only has about 95K miles on it - for a 10 year old vehicle that is really good. It still looks great. Altho dh started saying over the summer that we would need to put about $1K into it soon to keep it running the way that it should.

We have no debt other than our home and would be able to pay the new truck with cash. Yes, I know that DR says not to buy new vehicles - we don't like to anyway. However, this truck would be way less than "market value" given our economic environment. KWIM?

So what would Dave do?

[Greebo]

We have no debt other than our home and would be able to pay the new truck with cash. Yes, I know that DR says not to buy new vehicles - we don't like to anyway. However, this truck would be way less than "market value" given our economic environment. KWIM?

No, it wouldn't. It's market value is 18.5k, new. That's it. Driving it off the lot would make it worth about 30% less, or worse.

So if you are willing to throw away $7k of that hard earned cash by buying new, that's your choice - but don't deceive yourself into thinking you're saving anything when you buy it. The price is low because the market value has changed, and nothing more.

Now - any chance you can find a 1-2 year old slightly used one instead? Cheap? Maybe a repo?

[bumplett]

why purchase a 'new' or 'new to you' truck when the current one is paid for and running well?

don't fix what's not broken.

[forHISglory]

I would caution you to move carefully and slowly and not let any emotion or feelings get in the way. If the old truck is still functioning, I would not put it out to pasture. A thousand dollars for repairs is still much less than 18 thousand for the new truck. And I, too, would advise you to look for something that is not new.

Whenever strong feelings of "I must get it now!" descend on me, I know now that it is a sign that I must back off. I don't worry anymore about whether or not the "bargain" will still be there later. As a believer, I simply ask God to take control. I know that sounds simplistic, but for me, it works. I wait for His timing and His way.

[Cricketlegs]

Throwing my weight in here.

My dh works for the local chevy dealership--not in car sales.

It is getting very hard to find a good late model used car for a good price these days. People are snapping them up trying to save.

Check out the local used lots, gets some prices and then if you still want to go ahead then make your choice.

Just a heads up. We ended up buying our dd a NEW Cobalt as a late model used car was about the same price. We just couldn't find anything.

[rachelj]

Thanks everyone for your thoughts. Believe me when I say that this is still way in the early stages of the "thinking about it" stage. When dh bought his truck 10 years ago it took him months like 3 or 4 to finally buy a truck. We definitely do not move fast.

The reason that it is even a consideration is the fact that we will need to put about one thousand dollars into the truck to keep it working well. It is 10 years old and we know it will end up having to be replaced in the next couple of years if not sooner.

Keeping the truck was our original plan until we saw the price on a new truck being so low. I guess you could say I am thinking "out loud".

[Greebo]

$1,000 in repairs to keep it running is 1/18th of the cost of a new truck.

What is the kelly blue book value of the truck, private sale?

[rachelj]

kbb - excellent condition - approx 4300.

[MomToTwoBoys]

Imho, I'd use $1k and fix what may happen to the truck you all currently have until the economy rebounds.

A good idea to look at, if you're looking at buying this extended cab, is the possibility of getting a second vehicle for way cheaper that would fit you all into it. Would the cost of the second vehicle, along with insurance and gas and repairs, be a viable option also?

[Wendy99]

I agree with doing the repairs, just keep saving that other money!!

[Greebo]

kbb - excellent condition - approx 4300.

Then its worth doing the repairs. $1,000 to keep a $4,300 truck going strong? Well worth it, and worth way more than $18,500, in my book.

My final advice: Hang onto the cash. Rough times are ahead. You may need that $17,500 in the future. Fix the truck you have now and hunker down to weather the storm.

[BlessedMomof2]

I personally would not buy the $18K truck, I would put the money into fixing the current one since it it WAY LESS then the other truck. Yes, with older vehicles comes random repairs, but it might still be far less then buying a new truck.
And if you still want a "new" truck with an extended cab I would look into used.
My husband needs a new truck and we've been looking around on Craigslist, and we've been seeing very nice looking trucks with extended cab (as that is what we need) asking prices anywhere from 3500 on up.

Good Luck with your decision!

[kestrel91316]

I am only now getting around to soon replacing my 1988 Honda Accord. I have never regretted paying for repairs over paying for a new car. Heaven knows how many thousands of dollars I have saved over the years by going with what I already have. It gets me where I need to go. That is my ONLY consideration.

[Lorelei]

I agree with Cricketlegs. Look around your area to see, realistically, what a used vehicle will cost and availability. Then, with that info. decide whether it's better to upgrade now or wait. Everyone who mentioned the economy has a good point, but if you can pay cash without strapping yourself and you find that used vehicles aren't a viable option in your area, you might be better off buying now while prices are low.

[Grayce]

Honestly I disagree with most of the people here. It sounds like your current truck is not meeting your needs ie. it's not and extended cab and you want one. If you put $1000 into your current truck then you are still left with a truck that is no longer meeting your needs. I would say go for the new one since it's a good price, it's the one you want and you have the money to pay for it. As far as the comment that it would be worth 30% less once you drive it off the lot, well that is irrelevant unless you are planning to sell it. You have obviously been smart with your money, that is why you have no debt and have the money to pay for it. Isn't that why you have been frugal so you can spend your money on what's important to you?
I just went through a similar situation. We got rid of a 4 year old vehicle that just wasn't meeting our needs. Did it end up costing us money? Sure it did. But in the end the replacement vehicle is meeting our needs much better. Would I have put myself in a harrowing financial situation to get a new vehicle? No way! But I carefully weighed all the pros and cons and made the decision based on my family's needs (and budget).
I can also relate to the want to buy a new car because this is something we do. My DH and I have no clue about what to look for in a good used car (and as someone said they are getting fewer and farther between). I value the peace of mind of a new vehicle with a bumper to bumper warranty. Sure it means I probably spend more on vehicles than someone who buys a used car, but for me I don't mind paying extra for the feeling of security/peace of mind it gives me. I also take care of my vehicles, take care of the required maintenance and drive them until they wear out. The vehicle we just got rid of was the first vehicle that I sold and didn't keep until the Junkman came to tow it away.
A few things helped soften the financial side of it, first we sold our vehicle privately for more than the dealer was willing to give us, plus there are tons of incentives right now so it is a great time to buy.