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If you have been shopping for a new truck recently you likely have noticed that their prices have drastically increased over the last few years. When people notice that it will make them question whether they should get a new truck at all and whether it is a good investment or not.
If you look at it straight from a financial investment a new truck is not exactly a very good investment. As soon as you drive that truck off the lot it will be worth a few thousand dollars less than what you paid for it new. However, if you buy a used truck that is only a few years old it will be a better investment and not depreciate as quickly.
Buying a truck as an investment like a stock is quite simply foolhardy as the value of vehicles will always go down as you use them unless you are buying classic vehicles that could increase in value (but you can’t/ won’t want to use them like a normal truck).
A truck will depreciate no matter if you buy it new or used, however it could still be a good investment if you are using it to make more money than you lose in depreciation.
For example, if you use that truck for a construction business or any other type of business it can make you far more than what it depreciates however, you will also likely damage it so buying a used truck that is cheaper upfront is normally a better option.
A truck is normally not something you will regularly send your child to school in, or take it on a road trip, so it is typically used for hauling things back and forth for work. However, there are many different kinds of trucks that have different styles of construction, ranging from small pickups that are used for traveling or hauling small items to large dump trucks that can lift over 3 tons.
Pickup trucks used for work are generally more expensive than regular vehicles because they need to be strong enough to carry a large amount of weight.
You want to make sure that the truck you purchase is reliable especially if you have to use it for your job. Trucks that are used usually have a lot of miles on them but that doesn’t always mean that they are unreliable.
Some people might purchase a new truck and then have to sell it quickly and get some of their money back out of the deal. While this is not the most financially savvy thing they can do, there are some good deals out there for you if you just keep your eye out and find one of these gems.
Why You Shouldn’t Buy A Pickup Truck
For as long as there have been vehicles, there have been those people who really need larger vehicles to haul things.
While these types of larger vehicles provide great utility for some people, it is important to understand that they are not a great investment. They are not an investment in the sense that they will be worth anything close to what you paid for it when you go to sell it in the future.
Although pickup trucks are sometimes associated with being a great investment, in this day and age this is absolutely not the case anymore. There are other options available out there that might be better suited for your needs.
That’s why we’ve put together a list of reasons why you should avoid investing into a pickup truck at this time in your life or career. Although it is a noble pursuit to want to own a pickup truck, you need to take into consideration that your priorities in life might need to be on other things.
Whether you realize it or not, there are plenty of reasons why investing into a pickup truck may not be the wisest choice at this time.
Trucks Are More Work Than Necessary
The first reason why investing in a pickup truck would be bad for you is because of the work and hassle that comes with owning one of these vehicles. Although it may seem like it, owning a pickup truck isn’t all fun and games like the advertisements make it seem.
It takes quite a bit of upkeep to own a vehicle like this that has such a large engine making it harder to maintain and fix. You could be putting yourself into an endless cycle of work and stress that you don’t need to be in if you would have decided not to invest into a pickup truck.
A Truck Wastes Space
Another reason why investing into a pickup truck could be bad is because of the space it takes up in your garage or driveway. Although a pickup truck has many benefits, it also takes up quite a bit more space than your average car. This makes it difficult to have a place for other things to be stored in your garage or driveway without risking damaging both of them.
This is especially true if you have a large family like many do and need that extra space in your garage to store your extra items. This is why investing into a pickup truck may not be the best choice if you’re trying to get out of debt because it makes it more difficult on your wallet and on your space.
A Truck Might Not Be Good For What You Buy It For
The third reason why investing into a pickup truck could be bad for you is because you’re not doing what you should be doing by owning one of these vehicles. Most people think of pickup trucks as a rugged, dependable vehicle that can get you from A to B and you can use for hauling virtually anything.
What they might not realize is that there are more than just a few things you can not haul around when buying one of these vehicles.
The thing is, most pickup trucks are not built for hauling heavy items like brick, concrete, and even other heavy materials. If you want to haul something heavy in your truck like sand or gravel over rough terrain, your truck will likely break down on you before you reach your destination because it’s not designed to do this kind of work and haul things that are so heavy.
Because of all the reasons listed above, investing into a pickup truck could be a bad choice at this time in your life or career.
Is It Better To Buy A Used Or New Pickup Truck?
This is a common question for many truck enthusiasts.
For people who do not intend to use their truck for heavy-duty work, buying new could be the best choice for you. For people who are looking to use their pickup trucks to transport a bunch of things or to use regularly for work a used model may be more appropriate.
Of course, it all boils down to how well you take care of your vehicle and how much you use it.
If you are looking for a brand new truck, ensure that the dealer has one in stock and that the price they are selling it for is around the general price that other dealers near you are charging.
If you are looking for a used vehicle, make sure that the brand is one you can trust and who you buy it from is trustworthy as well.
What Do You Get When You Buy A New Truck?
When buying a new vehicle, you get to enjoy all the features and benefits of a top-notch product with the knowledge that everything is brand new. New vehicles always have the latest safety features, and these features come with the best warranties as well.
When you purchase a new pickup truck, you get to enjoy protection from breakdown for multiple years and mileage (typically 3 years and 36,000 miles) for free. If this is not enough coverage for your peace of mind, then consider purchasing an extra warranty either from the dealer or from other companies.
The best part about buying a new vehicle is that you know you will always get the newest features. You can also keep using the same truck for several years since there should be no major issues that can cost you huge sums of money to repair.
What Do You Get When You Buy A Used Truck?
When buying a used vehicle, keep in mind that regardless of how well the previous owner treated it, it may still have some faults and even mechanical issues. These faults can be in terms of wear and tear to body parts and interior trim, or even inside the engine that can make knowing about them difficult.
Depending on your preferences, an older model with lower mileage could be perfect for your needs. Try not to get too carried away with your choice though. If you are using this vehicle for heavy work, it is advisable to look for one with higher mileage as you will quickly erode the value by using it for that type of work so paying less upfront will be better.
When looking at used vehicles, ensure that the previous owner did all of the necessary repairs to the truck as not doing so can cause major damage over time.
Do You Get A Warranty With Your Truck?
Always check if a new or used vehicle has a manufacturer’s warranty and if so what exactly it covers. The warranty typically covers all mechanical and electrical parts of the truck for a certain period of time or miles. You may have questions about what parts this includes; however, it is very important that you read the policy details carefully before buying a used pickup truck as any warranty will normally be pretty short and won’t cover everything.
Should You Buy A Truck From A Dealer Or Private Individual?
Oftentimes, buying from a dealer is preferable to buying from another individual as dealers are able to offer many different services which will help you decide whether the vehicle can be used for your needs or not.
For example: when you purchase a new vehicle, dealerships will help you get the correct coverage for the truck as well as other insurance policies that protect your investment and peace of mind.
Dealers (at least good ones) will also make sure that all vehicles have been tested before they get to their buyers.
When you buy from an individual, it is possible that they know about an issue with the car and are actively hiding that from you. Most dealers won’t want to do that as it will hurt their reputation and kill repeat business long term.
What Truck Holds Its Value The Best?
When you are looking to buy a truck you will want to find one that won’t lose its value immediately or quickly. That is why it’s important to know which trucks will hold their value over time.
There are actually quite a lot of factors that affect the value of a truck. The biggest factor is the story behind it. When I say story I mean how it has been used in the past and also why it is being sold. If there is something special about the truck you should try to find out what its story is before buying it.
For example, a truck that has been owned by an older family that just used it around the farm and it has super low miles will be far more valuable than a truck that has been used and abused by a construction company.
The more you know about the truck and its story the less you’re going to have to worry about it losing its value. You’ll probably have all kinds of random people wanting to buy your truck so make sure that they know what they are getting into.
Just because you take great care of your truck doesn’t mean it will hold its value however. Many truck values fluctuate not only based on the condition and miles of the vehicle but also based on the perception of the vehicle make and model.
There are different types of brands out there and they are all seen a little bit differently. For example, Ford trucks generally hold their value decently while new Toyotas hold their value even better. Older Toyota trucks don’t enjoy this same value placed on them however.
This isn’t always the case but it is something to think about when buying a new truck.
You should also consider trucks that aren’t made by American companies as it’s estimated that a Japanese company’s trucks hold their value 10% better than American made trucks.
The miles on your truck are another big factor when it comes to how much money you are going to get out of it. If the miles are really low you will probably be able to get more money out of your current truck than someone who has put hundreds of thousands of miles on theirs. You want to make sure that any miles on your truck are consistent with how you use it as well.
The higher the number of miles the less you will be paid for your truck in general.
If you put 30,000 miles on your truck it will hold its value much better than a truck with 100,000 miles on it.
There are a few different apps and websites out there that will tell you how much your truck’s value might change based on its current miles and what features it has. If you have an older truck that is in good condition, this might help you to decide if the cost would be worth it to fix it up or if you should sell and buy a newer one.
This should be used as a guide only in regards to how much money you’re going to get out of it but it can give you a general idea of what you’re looking at.