Truck Value - Don't Get Taken For a Ride

You've seen the ads with huge miles per gallon numbers in great big type. You've seen plenty of others with little tiny monthly payment figures also in big bold type. Switch on the TV and there are plenty of ads there too that feature little trucks pulling huge semis full of half-naked women up impossibly steep hills.
How do you sort through all the hype and hoopla about price, performance, fuel economy and style to find a real truck value? One way is to make sure you don't set foot in a dealer's showroom until you know exactly what truck value means to you. To figure that out all you need is a piece of paper and a pencil.Truck value can mean many things. One person may measure it by payload and off-road driving limits while another measures it by current price and resale price averages. Understanding what you need your truck to do for you now and at the end of its life can mean the difference between getting a good deal or getting taken for a ride.
If an immediate answer doesn't come to mind, here are a few questions to ask yourself to help figure out what you need.

Where will the truck be driven most -- on the highway, in the city, off road?
What will you normally haul in the truck - tools in a more or less permanent case, heavy items occasionally, bulky but lighter weight items, etc?
Who will be driving it usually and are there any special accommodations you need to make for multiple drivers (cab height, tilt wheel etc.)?How important are fuel economy and/or environmental concerns?Do you have a preference for fuel type (gasoline, diesel, biodiesel, ethanol, etc.)?How long do you plan to own the vehicle - will you resell it or drive it until it dies?Do you use/need additional engine or braking performance beyond standards?



Some of these questions may seem redundant. Others may seem unnecessarily picky, but this is just the first step in doing your research. Once you've gotten all your answers written down, you'll want to go over your list and put a star by those areas that are more important than the others. You should quickly see a pattern emerge that will help you determine your major and minor value points.
For example, let's say you starred where the truck will be driven, have a preference for one fuel type and that environmental concerns are important to you. Fuel economy is clearly an important value for you but you'll need to research your different fuel options further. If you decide that you might want the option to make your own biodiesel in the future if prices of regular diesel rise, you clearly won't find a sale on gasoline powered trucks a good value.
Any new truck you buy represents a huge investment. You owe it to yourself to take the time and go through every decision making step you can to make sure that you get the very best truck value for you before you make that investment.

Truck Value - Don't Get Taken For a Ride

You've seen the ads with huge miles per gallon numbers in great big type. You've seen plenty of others with little tiny monthly payment figures also in big bold type. Switch on the TV and there are plenty of ads there too that feature little trucks pulling huge semis full of half-naked women up impossibly steep hills.
How do you sort through all the hype and hoopla about price, performance, fuel economy and style to find a real truck value? One way is to make sure you don't set foot in a dealer's showroom until you know exactly what truck value means to you. To figure that out all you need is a piece of paper and a pencil.Truck value can mean many things. One person may measure it by payload and off-road driving limits while another measures it by current price and resale price averages. Understanding what you need your truck to do for you now and at the end of its life can mean the difference between getting a good deal or getting taken for a ride.
If an immediate answer doesn't come to mind, here are a few questions to ask yourself to help figure out what you need.

Where will the truck be driven most -- on the highway, in the city, off road?
What will you normally haul in the truck - tools in a more or less permanent case, heavy items occasionally, bulky but lighter weight items, etc?
Who will be driving it usually and are there any special accommodations you need to make for multiple drivers (cab height, tilt wheel etc.)?How important are fuel economy and/or environmental concerns?Do you have a preference for fuel type (gasoline, diesel, biodiesel, ethanol, etc.)?How long do you plan to own the vehicle - will you resell it or drive it until it dies?Do you use/need additional engine or braking performance beyond standards?



Some of these questions may seem redundant. Others may seem unnecessarily picky, but this is just the first step in doing your research. Once you've gotten all your answers written down, you'll want to go over your list and put a star by those areas that are more important than the others. You should quickly see a pattern emerge that will help you determine your major and minor value points.
For example, let's say you starred where the truck will be driven, have a preference for one fuel type and that environmental concerns are important to you. Fuel economy is clearly an important value for you but you'll need to research your different fuel options further. If you decide that you might want the option to make your own biodiesel in the future if prices of regular diesel rise, you clearly won't find a sale on gasoline powered trucks a good value.
Any new truck you buy represents a huge investment. You owe it to yourself to take the time and go through every decision making step you can to make sure that you get the very best truck value for you before you make that investment.

Selling a Used Car Versus Trading It In - Which is Best?

You've decided to buy a new car. The natural question is what to do with your current car. You've got a couple options, so you need to understand the relative value of selling a used car versus trading it in when you buy.
The good news is that understanding the trade-in math can help put a nice chunk of change in your pocket. The bad news is that the math is not quite as straightforward as you might think.


Let's say you have a car that you can sell for privately for $5,000. And let's say you're in the market for a $25,000 new car. Should you sell your car yourself, or should you trade it in when you buy the new one?
You might put more cash in your pocket by selling it yourself, but your net gain on the sale might be lower than if you traded it in. That might sound strange, but it's really not. The missing piece of the puzzle is the impact of sales tax.
When you buy a new car, you have to pay sales tax only on the difference between the purchase price of the car and the trade-in amount.
So if you can find a dealer who will give you $10,000 for your trade-in (and he very well might in order to move a car off of his lot), you'll owe tax on $15,000. If the tax rate is six percent, that's $900. Consider that savings when you're deciding whether to sell your used car on your own.
If you sold your car on your own, you'd have to sell it for $10,000 plus $900 (your tax savings) to equal what your dealer was going to give you. That's a pretty high hurdle.but that's really only one consideration.
The other big thing to consider is the hassle of selling on your own, or to look at the other side of the coin, the convenience of letting your dealer handle the entire transaction.
If you sell on your own, you have to advertise the vehicle and try to market it in your area. Do you know the right price to charge? What sells where you are, and what does not? You'll also have to show it to interested parties, wait while people let their mechanic look at it, and so on. You'll have to handle all of the paperwork yourself, transfer the title appropriately and meet any requirements your state has for people who sell vehicles.
If you trade in your car, you're pretty much selling your car to the dealer. He does all the paperwork, and he's very likely to offer you more for the car than you'd get from a private buyer. You could have the entire transaction done the day you buy your new car, and never have to deal with another headache.
Selling your own used car and trading it in are both good strategies, and you can make out pretty well with either. But before jump into the seller pool, consider very carefully whether it's worth the bother, or whether trading will net you more money.

Selling a Used Car Versus Trading It In - Which is Best?

You've decided to buy a new car. The natural question is what to do with your current car. You've got a couple options, so you need to understand the relative value of selling a used car versus trading it in when you buy.
The good news is that understanding the trade-in math can help put a nice chunk of change in your pocket. The bad news is that the math is not quite as straightforward as you might think.


Let's say you have a car that you can sell for privately for $5,000. And let's say you're in the market for a $25,000 new car. Should you sell your car yourself, or should you trade it in when you buy the new one?
You might put more cash in your pocket by selling it yourself, but your net gain on the sale might be lower than if you traded it in. That might sound strange, but it's really not. The missing piece of the puzzle is the impact of sales tax.
When you buy a new car, you have to pay sales tax only on the difference between the purchase price of the car and the trade-in amount.
So if you can find a dealer who will give you $10,000 for your trade-in (and he very well might in order to move a car off of his lot), you'll owe tax on $15,000. If the tax rate is six percent, that's $900. Consider that savings when you're deciding whether to sell your used car on your own.
If you sold your car on your own, you'd have to sell it for $10,000 plus $900 (your tax savings) to equal what your dealer was going to give you. That's a pretty high hurdle.but that's really only one consideration.
The other big thing to consider is the hassle of selling on your own, or to look at the other side of the coin, the convenience of letting your dealer handle the entire transaction.
If you sell on your own, you have to advertise the vehicle and try to market it in your area. Do you know the right price to charge? What sells where you are, and what does not? You'll also have to show it to interested parties, wait while people let their mechanic look at it, and so on. You'll have to handle all of the paperwork yourself, transfer the title appropriately and meet any requirements your state has for people who sell vehicles.
If you trade in your car, you're pretty much selling your car to the dealer. He does all the paperwork, and he's very likely to offer you more for the car than you'd get from a private buyer. You could have the entire transaction done the day you buy your new car, and never have to deal with another headache.
Selling your own used car and trading it in are both good strategies, and you can make out pretty well with either. But before jump into the seller pool, consider very carefully whether it's worth the bother, or whether trading will net you more money.