buy new car or keep and fix old one? with todays prices for pick-ups, i am incline to keep my old one.?

Question

Good running F-150. My idea is to spend about $3000 to fix it (transmission, shocks, tune -up, new tires) and use it for another 2-3 years. $3000 would be my down payment if i was going to buy new truck. But after looking for what i like, i would have to pay $500 a month. I need my truck for work.
What do you thing? I bought my F 150 for $1000 and it is 1997.

Answer 1

The best thing to do is to figure the cost of repair, and compare that to the cost of a replacement truck. You have a good running truck, and are figuring on spending $3000 to keep it for another 24-36 months. Lets just use 2 1/2 years (30 months) for simple math!

If you pay $3000 for 30 months use, you are paying $100 / month for those repairs. You say that you would be paying $500 / for a new truck., There is a savings there of $400 /month. Advantage = old truck

At the end of the 30 months, you will have a truck without much actual cash value if you keep your truck. If you buy a new one, your truck will be worth more, but you most likely will still ow about what it is worth, so in either case you will have little equity. Advantage= none

A new truck may be a little bit more reliable. You will have a warranty. It also will look nicer (at least for a while)
Advantage = new truck

Only you can decide what is the better course of action, but I think you are looking at the case correctly. On a cost basis, you will come out ahead by driving the older truck.

Answer 2

I say, keep your old truck because you have a pretty good plan, plus, it sounds like a pretty nice truck.

Answer 3

i'd say get the new one. since you need the truck for work, you can use it as a tax write-off