Rewire
Senior Member
- Location
- Lake of the Ozarks
How do you decide when its time for a new work vehicle? Do you go by millage or age or do you drive it till the wheels fall off.
vehicle replacement
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Buck Parrish
Senior Member
- Location
- NC & IN
You want it to look nice, as it in part represents your bussiness.
Rewire
Senior Member
- Location
- Lake of the Ozarks
even good looking on the outside may need replaced.We have a one ton van that I want to replace simply for better fuel economy.
Rewire
Senior Member
- Location
- Lake of the Ozarks
I am not trying to recover the cost of the vehicle in fuel savings just looking at replacement to improve fuel costs.
Why? What would be the benefit of lower fuel costs if it lead to higher overhead when total costs were considered?
That's what a lot of people did a few years back. They sold their existing car that they owned outright in order to buy a new Hybrid vehicle. The $500-600 they saved per year in fuel costs was nothing compared to the $600 they paid every month for the loan on the new car.
I can't see why a business would do this, what sense does it make?
The Japanese stuff can easily go 15 or 20 years of front line service with concientious driving, Toyota or Hino. Used 10 - 20 y o Lexus's for a Sunday driver is a pretty good market.
http://www.hino.com/
The American stuff is a lot better than it used to be, but you can still get into the point where there's a lot of expensive petty repairs. As soon as you hit the planned obsolescence wear points, new can be smart. The insurance companies don't want you driving anything older than 10 years.
Rewire
Senior Member
- Location
- Lake of the Ozarks
Your fixed cost remain fairly the same . Things like oil changes ,tires ,insurance these costs atre their regardless. Now as for a higher payment you can approach this from two directions first you get to depreciate the "new" vehicle so you lower your tax burden and trhe payment on the "new " vehicle can be offset in lower maintenance costs. Ideal would be to purchase the new vehicle oytright then all you have is commisioning costs.
But you said, and I quote: "I am not trying to recover the cost of the vehicle in fuel savings just looking at replacement to improve fuel costs."
Rewire
Senior Member
- Location
- Lake of the Ozarks
correct I am not trying to recover cost of the vehicle from fuel savings what I am looking at is bottom line . Lower fuel costs mean that money goes to the bottom line. My vehicle fixed costs remain constant fuel is a variable cost .
No they don't.
Rewire
Senior Member
- Location
- Lake of the Ozarks
OK they don't
rt66electric
Senior Member
- Location
- Oklahoma
Talk to your accountant
Talk to your accountant
After my ONLY truck depreciated, my acct said " you can buy a new 3/4 ton ,or, pay Obama the same in taxes" New truck .. or... pay the Eagle..???? tough decision.
Talk to your accountant
After my ONLY truck depreciated, my acct said " you can buy a new 3/4 ton ,or, pay Obama the same in taxes" New truck .. or... pay the Eagle..???? tough decision.
Rewire
Senior Member
- Location
- Lake of the Ozarks
last year all our vans depreciated out this year we have replaced one van that was wrecked and are looking at replaceing a one ton so we will have two this year.
renosteinke
Senior Member
- Location
- NE Arkansas
I think Rt66 is on the right track ... this is a decision where you really want to crunch the numbers.
Sure, we put a lot into customizing our trucks, and grow attached to them .... but, never forget that the whole point of the truck is to help you better serve your customers.
I also think that the idea of having just one truck is a well-intentioned error. Fuel savings alone will pay off a new, small car that you can use for your customer calls, etc. A smal car can also handle a lot of the parts house runs.
"Lease vs. own" comes into play for a business, and is where you listen to your accountant.
Sure, we put a lot into customizing our trucks, and grow attached to them .... but, never forget that the whole point of the truck is to help you better serve your customers.
I also think that the idea of having just one truck is a well-intentioned error. Fuel savings alone will pay off a new, small car that you can use for your customer calls, etc. A smal car can also handle a lot of the parts house runs.
"Lease vs. own" comes into play for a business, and is where you listen to your accountant.
My ideal is 80,000 miles max. You are still well under the 100K mark so your resale should be OK. My newest trucks are just 5 years old, paid off, with about 50K on them. I looks like I will be stretching the mileage if things don't improve around here. Dependable trucks are a priority but, so is food 
Rewire
Senior Member
- Location
- Lake of the Ozarks
My ideal is 80,000 miles max. You are still well under the 100K mark so your resale should be OK. My newest trucks are just 5 years old, paid off, with about 50K on them. I looks like I will be stretching the mileage if things don't improve around here. Dependable trucks are a priority but, so is food
Do you sell them or trade them in?
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