May start buying new ever three yrs
03-10-2018, 10:37 PM
#21
Senior Member
OP, go for it!!! Do you really want to be the richest guy in the cemetery?
To minimize the financial hit, I would recommend selling the 3 year old truck yourself, if you are up to it. Much more cost effective than a trade-in.
But the pleasure of owning a new vehicle every 3 years, with the accompanying improvements, can't be measured in dollars.
To minimize the financial hit, I would recommend selling the 3 year old truck yourself, if you are up to it. Much more cost effective than a trade-in.
But the pleasure of owning a new vehicle every 3 years, with the accompanying improvements, can't be measured in dollars.
03-11-2018, 12:35 AM
#22
Senior Member
Honestly at your not too old age and good wealth, just buy a truck right now and then get a nice boat 
Like a pontoon or a fast bowrider. Then....move to Florida. Near me. Invite me out to the sandbar near here and we'll just get the ladies there assuming you're single.
Like a pontoon or a fast bowrider. Then....move to Florida. Near me. Invite me out to the sandbar near here and we'll just get the ladies there assuming you're single.
03-11-2018, 08:44 AM
#23
Senior Member
Thread Starter
OP, go for it!!! Do you really want to be the richest guy in the cemetery?
To minimize the financial hit, I would recommend selling the 3 year old truck yourself, if you are up to it. Much more cost effective than a trade-in.
But the pleasure of owning a new vehicle every 3 years, with the accompanying improvements, can't be measured in dollars.
To minimize the financial hit, I would recommend selling the 3 year old truck yourself, if you are up to it. Much more cost effective than a trade-in.
But the pleasure of owning a new vehicle every 3 years, with the accompanying improvements, can't be measured in dollars.
I cant wrap my head around the leasing game...to me it like renting an apartment, you never own anything..My neighbor trades every year or two for a new loaded Chevy truck..
He is in a good position to do this and like me has no kids, just him and his wife...he keeps his trucks spot free !..
My wife has a new Escape we bought outright and usually she runs them into the ground before replacing...may be time to rethink that too....
03-11-2018, 08:50 AM
#24
Senior Member
Thread Starter
OP, go for it!!! Do you really want to be the richest guy in the cemetery?
To minimize the financial hit, I would recommend selling the 3 year old truck yourself, if you are up to it. Much more cost effective than a trade-in.
But the pleasure of owning a new vehicle every 3 years, with the accompanying improvements, can't be measured in dollars.
To minimize the financial hit, I would recommend selling the 3 year old truck yourself, if you are up to it. Much more cost effective than a trade-in.
But the pleasure of owning a new vehicle every 3 years, with the accompanying improvements, can't be measured in dollars.
03-11-2018, 09:18 AM
#25
Senior Member
03-11-2018, 12:12 PM
#26
Senior Member
I bought my 2013 F-150 in December 2017, and as of year end I had 24,000 miles on it (4 years, so 6,000 miles a year). My private sale value was $25,000 at year end, figure the low mileage got me $1,000 added just for fun, so let's call it $24,000 with normal 15,000 miles per year.
When I bought the truck, the MSRP was $41,335, and the invoice was $38,120.92. There were rebates of $6,750 when I bought (which is basically irrelevant, because you're comparing against trucks of the same module year that may have had vastly different rebates). I also had $1,000 in private cash, so I got $7,750 off.
$24,000 / $41,335 = 58%, so it depreciated 42% in 4 years or 10.5% per year. While year 1 is the highest, figure 30% in 3 years as I said.
$24,000 / $30,371 I paid (ignoring sales tax) = 79%, so that's 5.25% per year off my price paid, but again that's dependent on those rebates that aren't the same all year and differ by region.
The other factor to put in here is the cost to buy new every 3 years, because Ford has raised the price every year. While my XLT was $41,335, I believe a comparable truck in 2018 would be much higher, and therefore the cost to replace climbs some more.
Since we currently qualify for A-Plan, and in Michigan A-Plan has very favorable rebates, I suspect our next purchase will be a lease because we'll get more rebates than purchasing, with a 3 year lease and buying it outright at that point, and possibly selling it. A-Plan also qualifies for the lowest leasing and financing rates that Ford offers.
There is no easy answer to what you seek - but having a fixed purchase price like with X-Plan makes it a more feasible strategy in my opinion.
Last edited by Ricktwuhk; 03-11-2018 at 12:33 PM.
03-11-2018, 12:47 PM
#27
Senior Member
Thread Starter
Simply go on sites that price used vehicles - Edmunds, KBB, etc. and price out a 3 year old truck with 30,000 miles on it... That's your answer. You can find 3 year old vehicles for sale that people have posted their window sticker, take those options, price them out, and you'll see what value they lost in 3 years and 10,000 miles (that's low mileage for 3 years - every year I figure out the values for my vehicle and adjust them in Quicken for net worth calculations).
I bought my 2013 F-150 in December 2017, and as of year end I had 24,000 miles on it (4 years, so 6,000 miles a year). My private sale value was $25,000 at year end, figure the low mileage got me $1,000 added just for fun, so let's call it $24,000 with normal 15,000 miles per year.
When I bought the truck, the MSRP was $41,335, and the invoice was $38,120.92. There were rebates of $6,750 when I bought (which is basically irrelevant, because you're comparing against trucks of the same module year that may have had vastly different rebates). I also had $1,000 in private cash, so I got $7,750 off.
$24,000 / $41,335 = 58%, so it depreciated 42% in 4 years or 10.5% per year. While year 1 is the highest, figure 30% in 3 years as I said.
$24,000 / $30,371 I paid (ignoring sales tax) = 79%, so that's 5.25% per year off my price paid, but again that's dependent on those rebates that aren't the same all year and differ by region.
The other factor to put in here is the cost to buy new every 3 years, because Ford has raised the price every year. While my XLT was $41,335, I believe a comparable truck in 2018 would be much higher, and therefore the cost to replace climbs some more.
Since we currently qualify for A-Plan, and in Michigan A-Plan has very favorable rebates, I suspect our next purchase will be a lease because we'll get more rebates than purchasing, with a 3 year lease and buying it outright at that point, and possibly selling it. A-Plan also qualifies for the lowest leasing and financing rates that Ford offers.
There is no easy answer to what you seek - but having a fixed purchase price like with X-Plan makes it a more feasible strategy in my opinion.
I bought my 2013 F-150 in December 2017, and as of year end I had 24,000 miles on it (4 years, so 6,000 miles a year). My private sale value was $25,000 at year end, figure the low mileage got me $1,000 added just for fun, so let's call it $24,000 with normal 15,000 miles per year.
When I bought the truck, the MSRP was $41,335, and the invoice was $38,120.92. There were rebates of $6,750 when I bought (which is basically irrelevant, because you're comparing against trucks of the same module year that may have had vastly different rebates). I also had $1,000 in private cash, so I got $7,750 off.
$24,000 / $41,335 = 58%, so it depreciated 42% in 4 years or 10.5% per year. While year 1 is the highest, figure 30% in 3 years as I said.
$24,000 / $30,371 I paid (ignoring sales tax) = 79%, so that's 5.25% per year off my price paid, but again that's dependent on those rebates that aren't the same all year and differ by region.
The other factor to put in here is the cost to buy new every 3 years, because Ford has raised the price every year. While my XLT was $41,335, I believe a comparable truck in 2018 would be much higher, and therefore the cost to replace climbs some more.
Since we currently qualify for A-Plan, and in Michigan A-Plan has very favorable rebates, I suspect our next purchase will be a lease because we'll get more rebates than purchasing, with a 3 year lease and buying it outright at that point, and possibly selling it. A-Plan also qualifies for the lowest leasing and financing rates that Ford offers.
There is no easy answer to what you seek - but having a fixed purchase price like with X-Plan makes it a more feasible strategy in my opinion.
03-11-2018, 12:52 PM
#28
Senior Member
Well the dealers here do 1000 under invoice so I think that's better than X plan...so if you lease you get better rebates ?? Then IF I sell my three year old truck outright I have to figure in I will be paying 8% tax on the purchase of the new one so id have to get 1500.00 or so more than IF I traded...
Yes, your tax calc is correct in many but not all states. Michigan does NOT give the credit over a value of $4,000 for 2018. So, if you trade in a truck with a $20,000 value, you get credit for $4,000 x 6% = $240 only. Therefore a private sale that gives me $240 more is worth doing.
Last edited by Ricktwuhk; 03-11-2018 at 01:18 PM.
03-11-2018, 02:11 PM
#29
Martin
I like things a bit simpler than all the calc numbers. From the look of it if you buy new every 3 years it will cost about 50% of the purchase price of the new truck. Seems like leasing would be more cost affective and most leases have a purchase option at lease end in case your conditions change. It's easy to see why a lease is very popular. My brother in law is finance manager at dealership in Des Moines and told me leases account for 48% of sales at his particular site.
03-11-2018, 05:30 PM
#30
Senior Member
I like things a bit simpler than all the calc numbers. From the look of it if you buy new every 3 years it will cost about 50% of the purchase price of the new truck.
For example, in this State, in a person to person auto sale, the buyer does not pay sales tax. That means the seller can price that into the selling price.
My 2010 Lariat had a window sticker of $43,165. Paid a lot less. I sold it 6+ years later, with about 42,000 miles (low mileage) for $24,500, in one day, with Craigslist, with 2 other people waiting to buy it. The ad is below.
That is a lot less than a 50% loss in 6 years, I paid around $38,000+ for it, so at 50% I should have gotten $19,000 for it. Got $5,500 more.
As I said, too many variables to predict what each case would be.
