2010 F250 or 2012 F250

[red-beard]

OK, I'm into a bit of a dilema. I used KBB to price up my 2010 F250 which only has 12500 miles on it. It said it was worth around $42K. With that, I thought I'd be able to get enough off an F250 to make trading up to a 2012 worth it.

After much negitiation, I have a $61K list 2012 down to $48K with my trade ($37K in loan).

Initally the dealers were coming our with $37-38K values for the truck. Fine. It just seemed that KBB was high (I had a previous thread on this). I now have 2 dealers that are offering me the truck I want for $48K. This was my price point.

So, they are knocking somewhere between $7K and $11K, depending on how they value the trade in.

Does this seem like a decent deal? Wife is not on board, since we just paid cash for a 2011 leftover X5 and we're about to rent an Industrial Office, which will need renovation.

Thoughts?

[1990C4S]

Why would you even think of spending so much (and borrowing so much)? What do you gain for $48k?

I'm with your wife on this one.

[red-beard]

Lower interest rate (2.49%) payment is about the same, end of loan, about the same 60 vs 58 months), 2 year newer model and about 10-15% better mileage with the newer engine. Oh, and basically 2 more years of warranty.

I could do it cash, but the 2.49% financing, taking into account the inflation rate is 3-4%, is basically free/negative money. We were planning to pay off the F250, but bought the X5 instead.

[URY914]

$61K for a pickup truck?

ROTFL!

[kaisen]

So, it's a little unclear, but you're trading for $10-11K ($48K less $38K trade)?
$5,000 a year for 6,750 miles per year?

In my professional opinion, you need to do one of two things:

1) lease a truck every two or three years

OR

2) Keep your 2010. Look at the truck as a tool. What would the 2012 do for you that the 2010 will not? A 10-15% benefit in fuel economy (you're fooling youself) will never add up to $10K. You can always buy a $1200 extended warranty to equal the 2012's coverage. You can always refinance the 2010 for today's lower rates. People do it all the time. So the savings there is not a valid reason.

If there IS a good reason/utility for the 2012, then make the trade, as $10K for two years is a good deal compared to trading X5s every two years. But cash out of the 2010 (don't apply the equity) and LEASE the 2012.

[EarlyPorsche]

You have me on your side. Here's why:

The 6.4 v. 6.7 is a no brainer to me. The 6.4 is going to have 6.0-like problems in the future. The 6.7 should be better (googled it and there seem to be problems with the 6.7 too).

That said: get a fully loaded Dodge with the 6.7!

[red-beard]

Originally Posted by kaisen

So, it's a little unclear, but you're trading for $10-11K ($48K less $38K trade)?
$5,000 a year for 6,750 miles per year?

In my professional opinion, you need to do one of two things:

1) lease a truck every two or three years

OR

2) Keep your 2010. Look at the truck as a tool. What would the 2012 do for you that the 2010 will not? A 10-15% benefit in fuel economy (you're fooling youself) will never add up to $10K. You can always buy a $1200 extended warranty to equal the 2012's coverage. You can always refinance the 2010 for today's lower rates. People do it all the time. So the savings there is not a valid reason.

If there IS a good reason/utility for the 2012, then make the trade, as $10K for two years is a good deal compared to trading X5s every two years. But cash out of the 2010 (don't apply the equity) and LEASE the 2012.

Thanks for the serious answer. I bought the truck Oct 30th, 2010. It was a left over 2010. This past year it was about 1000 miles per month. This year will be more miles. I expect we will be doing a round trip to Boston from Houston.

I understand that the better fuel efficency by itself is not enough. To me, it is the combination of factors.

If $38K is the right value for my Truck, then I'm getting the 2012 for $12K off MSRP. Is this a decent reduction?

I will explore changing to a lease for the 2012. One thing, based on our tax status, I can write the price difference off against top income. This will mean an effective 32-36% reduction. So the after tax effective difference is ~$6600.

[varmint]

Originally Posted by red-beard

After much negitiation, I have a $61K list 2012 down to $48K with my trade ($37K in loan).



Thoughts?

i can think of a ****load of better uses for $37k. starting with just not spending it.


bought a 93 f-250 diesel a few year back for three grand. sell the 2010, buy an old beater like mine. roll around naked in a pile of surplus cash.

[kaisen]

Originally Posted by red-beard

Thanks for the serious answer. I bought the truck Oct 30th, 2010. It was a left over 2010. This past year it was about 1000 miles per month. This year will be more miles. I expect we will be doing a round trip to Boston from Houston.

I understand that the better fuel efficency by itself is not enough. To me, it is the combination of factors.

If $38K is the right value for my Truck, then I'm getting the 2012 for $12K off MSRP. Is this a decent reduction?

I will explore changing to a lease for the 2012. One thing, based on our tax status, I can write the price difference off against top income. This will mean an effective 32-36% reduction. So the after tax effective difference is ~$6600.

I don't remember enough about your current truck to give you values, but on the surface, $10K for two model years trade is in line. If it is a diesel, there is also a significant performance gain.

If you're running it through a business, anything that heavy GVWR can be deducted completely the year it was purchased (or over any period you'd like). Of course, if you sell it for more than you've depreciated it, you'll need to take that gain.

Pulling the equity out (whatever that figure is) and leasing the new truck MAY be a better way to keep "owning" a HD truck. It's just another financial instrument you have to consider. But it does make writing things off much cleaner, and hedges your risk of depreciation. You'll just have to do the math. It may or may not be clear once you see both alternatives side by side. But Texas does have some sales tax advantages to leasing, as well as federal income tax benefits. Speak with your accountant.

[red-beard]

Both Vehicles are nearly identical, except the 2012 is a better color Dark Blue with Dark grey interior vs. 2010 Dark Green with light tan interior. F250 Lariat, Ultimate with 20" Alloy, Sat Nav, Sat Radio, etc.

Again, thanks for the serious answers!

Woo-Hoo! GO TEXANS!!!

[porsche4life]

Quote de red-beard

After much negitiation, I have a $61K list 2012 down to $48K with my trade ($37K in loan).







Thoughts?

i can think of a ****load of better uses for $37k. starting with just not spending it.





bought a 93 f-250 diesel a few year back for three grand. sell the 2010, buy an old beater like mine. roll around naked in a pile of surplus cash.

This is a fine plan for an extra truck..... Those of us that actually use them a lot, need newer, better, more reliable.

[1990C4S]

Originally Posted by red-beard

Again, thanks for the serious answers!

Originally Posted by red-beard

We were planning to pay off the F250, but bought the X5 instead.

My answer was serious, but we do not even think remotely alike, so ignore what I said.

My life is somewhat more spartan....

[red-beard]

I was replacing my Wife's 12 year old 2000 X5. So we generally keep them a long time.

[1990C4S]

Originally Posted by red-beard

I was replacing my Wife's 12 year old 2000 X5. So we generally keep them a long time.

My 12 year old car is my newest car....

[red-beard]

Originally Posted by 1990C4S

My 12 year old car is my newest car....

Yes, but I was spending $3-5K per year to keep a $7K car on the road.

[trekkor]

My '01 F-350 is a work horse.
Has 140k on the clock and the proven 7.3 diesel.

Buy one of those.

Should get 300k miles






KT

[red-beard]

The 250 barely fits in my carport. No Way I can park a Dueller...

[trekkor]

Step up!


KT

[speeder]

James, what do you tow or haul w/ the PU truck?

[red-beard]

30 ft trailer with extruded aluminum shapes, up to about 10,000lbs, along with other things