vehicle replacement

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Rewire said:
I am not trying to recover the cost of the vehicle in fuel savings just looking at replacement to improve fuel costs.
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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?
 
Rewire said:
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.
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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.
 
HackWork said:
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?
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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.
 
Rewire said:
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.
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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."
 
HackWork said:
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."
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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 .
 
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.
 
rt66electric said:
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.
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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.
 
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.
 
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 :)
 
220/221 said:
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 :)
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Do you sell them or trade them in?
 
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