Here are four questions that will make you a smarter consumer and help you answer the question “should I buy a new or used truck?”
How much money are you willing to spend?
Take a good hard look at your bank account and ask yourself what the highest amount of money you’d be willing to spend on a new pickup truck is. The number that you settle upon will help you determine whether a new or used truck is better for your pocketbook. As a rule of thumb, a new truck will cost $20,000-$50,000 while reliable used trucks start at about $5,000. If you have a specific model of truck in mind, you should conduct a search online to determine how much this year’s model costs. If the newest model of your favorite truck is exorbitantly expensive, don’t lose hope; a used version of the same truck should cost half as much, if not less!
Are you prepared for depreciation?
Why does a used truck cost half as much as this year’s version of the same truck? The answer is depreciation. The moment that you drive a new vehicle off of the lot, it is considered a “used vehicle” and it’s retail value immediately diminishes by 11%. After five years, your brand new truck will only be worth about 37% of what you paid at the dealership! Even if you are the kind of person who likes to make upgrades to your truck, you cannot expect to sell your pickup for anything close to the price that you bought it for. The benefit of buying a used pickup truck is that the first owner has taken the biggest hit in terms of financial depreciation. How much are you willing to pay to be the first owner of a pickup truck?
How much are you willing to pay for insurance?
The sticker price of the truck is not the only cost that you should consider. The ongoing costs of repair, maintenance, and insurance will also contribute to the “true cost” of your vehicle. If you’ve never owned a truck before, you should be aware that it typically costs more to insure a pickup truck than a compact car. This is because larger vehicles (like pickup trucks) have the potential to cause more damage in an accident than a small car. Auto insurance premiums also vary based on the age of the vehicle that you’re insuring. This means that it’s cheaper to insure a used pickup truck that it would be to insure a new pickup truck. If you want to save money on your monthly insurance bills, a used truck is the best option for you.
Do you want all of the newest special features?
Ask yourself which features you can’t live without in your new pickup truck. Are you the kind of person who wants all of the bells and whistles in their pickup truck, like rear backing cameras, bluetooth connectivity and a DVD player in the back for the kids? Or are you looking for a vehicle that will take you from point A to point B without the expensive extras? Today’s pickup trucks feature more passenger space and cabin technologies than ever before, and there are many luxury models available that will make you feel like you are driving in a cadillac and not a pickup! However, special features come at a price and can dramatically increase the cost of a new pickup truck.
If you want to save money by eschewing special features, you may want to avoid new car dealerships as it is becoming increasingly difficult to find or purchase new “basic model” vehicles. Basic model vehicles are bad business for car manufacturers and new car dealerships because these retailers can charge significantly more for vehicles that are enhanced with the newest technology.
If you don’t see a need for having the newest “infotainment” technology in your pickup truck, a used truck is probably the best option for you. Don’t forget that used trucks can always be customized to match your style and taste if you desire upgraded features but can’t afford a brand new pickup truck.
Pickup trucks, both new and used, are in particularly high demand in the United States today. It’s no wonder why – they are the best personal vehicle for hauling large loads and driving in challenging terrain! If you choose to buy a new pickup truck you will not doubt be impressed by all of the luxurious and technologically advanced options on the market today. If you want to buy a pickup truck for the sake of driving a pickup truck and do not need all of the newest features, a used pickup truck is your best bet. Which option is more appealing to you?
If you are leaning towards a used pickup truck, the Reno Tahoe Auto Group has the largest selection in Northern Nevada! Take a look at our huge inventory of used trucks in Reno and see for yourself how many great used pickup trucks are on the market today!