Used vs. New Overland Vehicle?

[Ryanmb21]

Nope, I bought the truck from a dealer, which means that he bought the truck from the previous owner for probably $12- $15k, if that. So the depreciation was probably closer to $15-20k.

Also your math only works if there was one previous owner. If there was more than one (lets say, one owner from 0k miles to 50k and another from 50k to 93k) then the guy who owned it from 0K to 50k lost a huge amount and the guy who owned it from 50k to 93k only lost a little.

Yup. You can speculate what the previous owner sold for, but you proved the market price.

Also, Trade-in value is apples to oranges as it builds in resell cost and provides convenience. Carmax exists on this service. Fact is, the original owner could have sold it for near your price.

Having provided consulting services for dealers, I can tell you they do not profit on every deal.

 

[Clutch]

Even better, buy a used truck someone has built up for off-road use. You 'd be surprised how many people finish a project, use it for a couple of months, then sell it so they can start a new project. Accessories like lockers, skid plates and axles depreciate, too.

I'll never buy a used modded vehicle, I always look for a vehicle that is in stock form, who's owner has all the service records. It takes some time, but they are out there. Usually takes me 3-6 months to find the "right" vehicle.

 

[kanger]

Thanks for the feedback everyone! I'm surprised there weren't more advocates for new, but what you all stated made a lot of sense. I got lucky and bought my '96 4Runner Limited 4x4 w/ 135,000 for a whopping $2,500 (got it from a friend who got it at auction and drove for 3 years). So far, I've invested another $4,000 or so on maintenance, repairs, and mild upgrades (lift, tires, sliders, skids). I have a rear main seal leak, which I know costs a bunch to fix and a cylinder misfire that just keeps coming back and am concerned it might be a headgasket...another costly fix. I was trying to justify getting a newer vehicle vs. spending the extra money to fix the one I have. I suppose I'll keep it. I've already fixed everything else on it and at <150,000 miles, it's still a baby.

Thanks again y'all.

 

[Clutch]

For the money you haven't spent on a vehicle...you are that much further ahead than most. I paid 1 dollar for our Trooper...now I don't want to spend any money on a new vehicle...even though I can afford it.

If the frame and body aren't rusted up...I would just keep on fixing it. It is just a machine, everything can be fixed.

Insurance and depending on what state you are in...registration can be much higher. Here in AZ, they nail you on new vehicle registration. If I did end buying a new truck, I was going to wait until I moved to Idaho in August...since the registration fees are much lower there. I don't like paying for paper work...I can be a real tight wad on certain things.

Assuming you would take out a loan for a new vehicle...so you have interest to pay on top of the cost too.

I would write down how much the out the door price of the new vehicle is...then think what else you could apply that money to. New engine, tranny, etc....gas... food...

Not spending $35K+ on a new 4Runner...buys an awful lot of petrol, beer, and tacos....:sombrero:

 

[Martinjmpr]

One of the interesting side effects of the improvement in vehicle quality and reliability has been that the difference between new and used has become much more fuzzy.

I'm old enough to remember when vehicles came with a 12 month, 12,000 mile warranty, and when vehicles had 5 digit odometers for a reason: Because by the time a vehicle's odometer had "turned over", that vehicle was ready for major repair work.

But those days are long in the past, and nowadays, getting 100k or even 200k from a vehicle is not considered out-of-the-ordinary. My '07 4runner has about 116k on it and still feels "new" to me.

I honestly see no point in buying new anymore. New vehicle prices are absolutely ridiculous, and the taxes and insurance on top of that just add to the cost.

I seem to average around 11,000 miles/year on my vehicles, meaning that even if I can only expect a vehicle to go 50,000 miles after I get it before it needs major repair work, that's still almost 5 years - and the longest I've ever kept a vehicle was 7 years and 133,000 miles (and that was when I was single and driving a LOT. It was also when gas was <$1/gallon.)

Of course, the other factor for me is geography: I'm fortunate to live in a place that's very dry, has relatively mild winters (in terms of snow/ice anyway) and where they don't use much salt on the roads.

For that reason, there are lots of vehicles available on the used market that have relatively high miles but are in pretty good shape overall. Those who live in the Northeast or near an ocean don't have that luxury - in those parts of the country, a 5 year old vehicle with 125k on it might be mechanically sound but the body is often severely rusted, and there's not a lot you can do about that. And even a vehicle that's not severely rusted after 4 or 5 years is nowhere near as "clean" as a new one.

So if I lived in one of those places, I might see a more significant difference between new and used.

 

[Ryanmb21]

@Martinjmpr I understand where you're coming from and hear what your saying. My point is that, buying used may not always be the option.

If the guy buying new is paying ~$2K year in depreciation AND the guy buying used is paying ~$2K/year in depreciation - who's coming out on top? Depends who you talk to - the guy driving the new truck says he is because he is driving a new truck that is presumably safer, more reliable, more efficient, under warranty. The guy with the used truck says he is because he has "less" into it.

But I am actually interested to see the real results from some folks who have owned good trucks for the long term. That is why I started THIS THREAD. Once you have more miles and more years in your 4runner, I'm curious where your cost per mile will compare to mine :sombrero:

 

[Clutch]

But I am actually interested to see the real results from some folks who have owned good trucks for the long term. That is why I started THIS THREAD. Once you have more miles and more years in your 4runner, I'm curious where your cost per mile will compare to mine :sombrero:

I saw that...I seriously paid 1 Dollar for our 2002 Trooper (95K miles...like new, it was seriously spotless!)...other than oil changes, gas, and inurance/registration fees...I haven't put a dime into it. Had for 3 years now. So I am betting I have most of ya beat.

As for the Tacoma, I don't have all my receipts (have most, but not all) I have had for 12 years now...and I really don;t feel like adding up 12 years of reciepts. Think I paid $17K for it, and maybe $6-7000 (if that) worth of repairs over those 12 years. That doesn't include consumables, like oil, gas, filters. According to my fuzzy math, I put 18,500 miles on it a year.

The '73 VW Westy I had, didn't put a dime worths of repair into it...sold it for twice for what I paid for it. So depending on a vehicle's age...you'll make money instead of loosing it. Classics for an example...you'll most likely not loose money on. Kicking myself for selling my Chevelles I had 25 years ago...could of gotten some coin for those today.

 

[Ryanmb21]

I saw that...I seriously paid 1 Dollar for our Trooper...other than oil changes, gas, and inurance/registration fees...I haven't put a dime into it. Had for 3 years now. So I am betting I have most of ya beat.

As for the Tacoma, I don't have all my receipts (have most, but not all) I have had for 12 years now...and I really don;t feel like adding up 12 years of reciepts. Think I paid $17K for it, and maybe $6-7000 (if that) worth of repairs over those 12 years. That doesn't include consumables.

The '73 VW Westy I had, didn't put a dime worths of repair into it...sold it for twice for what I paid for it.

Run the numbers! I would love to see the results on both of your examples!

No need to add up every single reciept, estimate the recurring stuff and add up the one-offs. The time will be well spent for the greater group.

Gas - it really adds up

 

[Clutch]

Gas - it really adds up

Yeah it does, 18,500 miles/year, 18 mpg (average) X 12 years... :Wow1:

According to my fuzzy math, the Tacoma cost me .35¢ a mile over the course of 12 years.

 

[ExploreNorthernBC]

The used new debate is very vehicle specific and budgeting specific. Budgeting gets interesting if you do not have cash for the purchase, but have to finance in some way. With respect to the Tacomas (something I bought new in August 2013) the base trim for a short box double cab ($28,600 Canadian) was roughly the price of all of the available Tacomas that were used within 2 to 5 years of new. It is of note that I could not find any base model Tacos anywhere - which is odd really since getting the SR5 or the TRD really only gets you painted bumpers and electronic gizmos that can break. Anyways, I needed certainty within my monthly cash flow, so a used base Tacoma turned out to be by far the best option for me.

 

[Arktikos]

There is a downside to this though. This is what I did last year (Bought a built vehicle), thinking I was going to have a newer built vehicle ready to go. But the combination of a vehicle with 120k with significant offroad use has meant that I have done a lot of work to it over the last year.

I would suspect (assume?) that built=less dependable in most cases. All potential problems of a stock vehicle times (enter number here).

 

[Arktikos]

I feel much more comfortable and liberated in a vehicle with less financial value.

Amen to that.

Guess it comes down to how many miles people anticipate driving with these trucks. If it's less than 10K a year, which I would imagine it would be in most cases, new doesn't make much sense in my opinion.

 

[jgilbreath]

My last new truck was an 07 f150. I drove it for five years and sold it for $6500 loss, so not terrible on depreciation, although it did have low miles at under 50k. After that was a 99 Tacoma that i sold after one year for $1900 more than i paid. $300 profit even after deducting everything except gas. My wife and i are now convinced to buy reliable used vehicles. At a certain point the depreciation becomes almost zero.

 

[kanger]

The only reason why I'd want new is because I'd know for sure everything that was done to the vehicle. I'd be using all the best fluids, making sure to keep up with all the maintenance, etc. Also, I'd only buy new if I was planning to drive it 'til it died. But, as I learned when I bought a new Nissan Titan several years ago, unexpected things can happen like ACCIDENTS...which is why I got rid of it. So, used it is. Thanks for all your input guys.

 

[LessiePMcCord]

I think that today you will feel much better and more comfortable if you sit behind the wheel of a new car. Old and maintained cars will quickly break down and you will have to pay for repairs much more often. This option will not suit anyone, right? Last month I managed to sell my old jeep on https://www.wacarremovals.com.au/car-disposal-perth/ . This service helped me get rid of my father's old car and now I was able to buy a new vehicle for myself that looks great and feels very comfortable. If I have to choose between a new and old car, then I would choose a new transport without too much thought