#TruckTrend: How do all these youngsters afford brand new trucks these days? πΈπ
Hey there, fellow construction worker! It seems like everyone around us is driving around in shiny, new trucks that we can only dream of. Trust me, I’ve been in your shoes, eyeing those luxurious vehicles and wondering how on earth they’re within reach for some people. Let’s break it down and see what options we have.
## Assessing your Financial Situation π°
First things first, take a closer look at your finances. You mentioned making good money and having substantial savings, which is fantastic! It’s crucial to evaluate how much you can comfortably afford to spend on a new truck without putting your financial stability at risk.
## Exploring Alternative Financing Options π
If dropping $40k on a used truck or over $50k on a new one doesn’t align with your budget, you might want to consider alternative financing options. Look into financing through a credit union, which could offer better interest rates than traditional banks. Leasing is another option to keep monthly payments lower.
## Considering Certified Pre-Owned Models π
While the used truck market is pricey, certified pre-owned (CPO) vehicles might be a more affordable option. CPO trucks come with warranties and go through rigorous inspections, providing a middle ground between new and used prices.
## Negotiating Like a Pro π€
When you find a truck that catches your eye, don’t be afraid to negotiate. Dealerships are often willing to work with buyers on pricing or throw in added benefits to seal the deal. Research comparable prices in the market to leverage your negotiation power.
## Building Credit for Better Rates π
If you haven’t already, focus on building your credit score. A higher credit score can qualify you for lower interest rates on financing, potentially saving you thousands of dollars over the loan term. Keep your credit utilization low and make timely payments to boost your score.
## Conclusion: Driving Towards Your Dream π
In a world where expensive trucks seem to be the norm, it’s essential to approach your purchase strategically. Assess your financial situation, explore financing options, consider CPO models, negotiate like a pro, and focus on building credit for better rates. By taking these steps, you’ll be one step closer to cruising around in the truck of your dreams without breaking the bank. Happy truck hunting! ππ¨
Debt, and lots of it.
By the great magic of Loans!!!
Repos are super high right now… A lot of those trucks are being repossessed.
They donβt. They get saddled with high interest rates, long loans and tons of debt. Then they end up with ridiculous monthly payments and maintenance they canβt afford, yet still pump money into upgrades and bullshit. Donβt be like them
By taking seven or ten year loans on it with payments like $800 dollars a month.
There were a lot of 2023 models left over this year, too. They’ll eventually need to adjust prices to move that inventory. Income just isn’t growing at that rate.
A lot of people are living above their means.
The magic of 72 month loans. And leases, leases help you drive something you can’t afford.
“invested / saved a lot”. That’s the difference, you are sensibly paying forward for your future self while the going is good. They are only thinking of right now.
Taking on tpo much debt is one way. The other way is to start a side business which lots of trades do. The side business buys the truck and writes it off as an expense against the business. There are rules around this type of thing so make sure you know what you’re doing before you go down this road.
Thatβs why the last Silverado I turned in a few months ago will be my last. Itβs ridiculous
Keep the old truck going.
I have 20 Yr old hi-lux that gets serviced every 6 months and just keeps going. 270,000 miles on the clock
You wsnt to look rich or you want to be rich? Things like new trucks make you looms rich at the expense of actually being rich.
I’m in the same boat.
I have a truck that is getting up there in miles so I do some casual looking for new or slightly used.
I can’t justify the cost. And I see brand new trucks everywhere. While I could afford it, it just doesn’t make sense to spend that much.
I am happy to see more mid and compact size trucks these days. They’re still expensive though.
These cats are broke, bro. Taking out 8 year loans at absurd interest rates for $80,000 trucks they drive to their office jobs.
High risk/ creative financing.
US people like drowning in debit
They don’t. A former friend of my SO got a girl preggo on date 1. He freaked out so hard about his good Christian boy image and basically tossed himself into debt to fix that. In order: Got rid of his perfectly fine paid off Explorer to get a luxury fully loaded Maverick, bought a house despite having a pretty nice rental, the girls car got repo’d so they bought her another car (you still have to pay off the repo), and then moved up the wedding a year because grandpa was dying and spent over 10k on it. He complains he’s broke a lot…
Sounds like you can afford it but canβt justify it. Those are very different things.
Reading through this thread is scary.
I’ve been in the trades 15 years now. I’ll never own a new truck in my lifetime. One, it’s marked up 10k minimum off the rip. Two, trucks for the foreseeable future will be priced out of mine and 80% of the blue collar workers budgets. It sucks too, because we’ll utilize and appreciate them way more than the dbags buying em now.
As the person issuing them insurance, extremely few own them outright. They have huge loans.
Those dudes are working 50-60hr weeks so the payment don’t hurt so bad
I made the mistake of buying a brand new F150 in 2010 after a tour in Afghanistan. Was a rough tour, and frankly at that time I probably wasn’t of the most sound mind. While on tour I was looking at houses to buy back home, but by the end of it I was just worn out and wanted to reward myself.
It was the second highest optioned packaged for an FX4. 7k down payment, and 45k financed. For reference, my parents bought their first home in Nova Scotia 19 years before that for 38k.
I paid off the truck with only a late payment or two over the duration of the term, but let me tell you I was so glad to be done paying. By 2018 the cam phaser was starting to go and rust was pretty bad on the under carriage. I had also lifted the stupid thing and had oversized tyres turning it into a gas guzzling monster.
I was so relieved to get rid of it.
I make double what I made back when I bought it and I will personally never buy a new truck again, if ever get a truck again. I loved having the utility of a truck bed, the ability to roll into home depot and pick up dry wall, lumber, and other materials for home renovations. But you can buy a small single axle trailer for a couple grand and just make sure whatever car or suv/minivan (if you must) has a tow hook and you can carry all that same shit.
The only times I ever really got use out of it was towing a boat or trailer, but since I couldn’t afford those toys (thanks truck payment) I was seldom using it for those tasks.
People aren’t buying them because they can actually afford it, they’re buying them because dealerships are finding ways to make the monthly payment just fit within their ‘budget’. The reality is in order to do that most people are sacrificing savings, flexibility, and financial security to make it work.
My advice, as someone who did fuck up and buy a new truck. Drive your current truck until the wheels fall off. If you absolutely must have a truck, and I’d bet even as a construction worker you probably don’t, then find yourself another used small truck in a private sale. Don’t let the kind of vanity that I embraced ruin you financially.
Take a look at some of the finance subs. People making close to $200k a year and crying they don’t know how to survive when their vehicle loans are more than my mortgage in a LCOL area.
Also, depreciation is huge if you’re working for yourself and have a good accountant.
We bought a brand new loaded Chevy Silverado in 2008 for $20,000. We went to go buy a new one a few years back and the same model was $52,000. We went with a 2018 Ram. Much less money and more buttons and whistles. It’s been a great truck so far. And my husband puts at least 100 miles a day on it.
People will get themselves into serious financial hurt to have a taste of the life they envision for themselves in the short term. Debt is a hell of a drug and Thatβs part of why we had the 2008 crash. People had dreams of homeownership or sizing up into way bigger houses and predatory lenders were happy to help make that happen. Same shit on a smaller scale with nice cars and trucks.
Do something nice to the one you have, paint job, wrap, fancy wheels, get the motor rebuilt. All not cheap but it’s not 50,000.
I get a vehicle allowance. $850 a month. Plug my gas is covered. Iβm also in construction. Definitely helps
Lots of people have more debt than you realize. Some people are just floating in debt, but for whatever reason, cannot stop buying. At least they keep the economy rolling.
My nephew is one of those guys. He had a lease that needed repairs he couldn’t afford. The dealer, in their infinite compassion, got him a new lease on a new f150 at a much higher payment. So now he gets to feel rich to strangers while his wife and four kids are a good chunk poorer.
They’re not. I have a neighbor who’s needed a truck for work his entire life and complained to no end about how theres no decent basic work truck, theyre all for suburbanites trying to overcompensate for something.
As a sidenote, you might be laughed off the jobsite, but I think Japanese Kei trucks are neat.
A lot of tradespeople claim their personal truck is a work truck and the tax deduction helps pays for it.
Thatβs why they say βI need it for workβ, in case you are with the IRS.
Debt and business write offs. Thatβs why most have their business name on them. Start a business where a truck is semi needed, put a paper size decal on it of your business and bam, itβs a write off on your taxes if you do it the right way. You can only deduct βbusiness useβ for it but not personal. But there is ways to play with that and it rides a thin line with the IRS. Best bet is to let a tax accountant work with you and help you make the best choices, because a tax accountant is also tax deductible.
I got some Tensor Lights for my skateboard, they were only Β£30 on sal…….. Ohhhhhhhh a proper truck.
Lots of debt and high monthly payments
Good on you for resisting. Continue to do that and youβll be leaps and bounds ahead of them.
I remember when getting a simple pickup truck was an economical option. Do they even make those anymore?