buck183

OK, this will be kind of long so hang with me.

This is not a Ford vs Chevy which is better argument.

Situation....I need to purchase a new truck by September of this year for tax purposes through my business. Sole Proprietorship.

Currently in a 2000 1/2 Ton E-Cab 4x4 LT Chevy. Currently in a Smart Buy program through GM on this truck. (hold your opinions until you finish reading) First part of Smart Buy is up in August, which is right before the cutoff to still get write off for the year. I was looking at trading into a SuperDuty 3/4 CC 4x4 SB 6.0. Other truck I am interested in is the same truck from Chevy with Duramax. (both trucks being loaded) Pulling a 26' Scarab that weighs 6820lbs loaded with gas on trailer.

Lost equity in current vehicle so trading may not be an option. Better off waiting and giving it back. Looked at leasing through Ford but finance guy told me to RUN fast. Talked to my guy at Chevy Dealership, he said go back with Smart Buy. Here's why....I can go into it 0 down, pay for 24 months, (lower payment) and still write off entire purchase price of vehicle over the period of time. Said I'm one of the few people it would work for...keep in mind mileage is not an issue for me. I only put about 12k miles a year on a vehicle.

I was ready to just do a 60 month note and build equity in the vehicle this time, but dealer has me talked out of it.

I can buy the Ford for about 4-5k less. But have been a GM man ALL my life. Wouldn't mind owning the Ford though. They don't seem to have as attractive financing for my situation though.


The payment for the truck in a years time will be about $7200. The amount it will save me in taxes is about 20k for a year, plus fuel, insurance and upkeep.

All that being said...should I just do a 60 month note and build equity knowing that I will HAVE to trade in 24-36 months due to taxes. Or would you do the Smart Buy, throw them the keys after 24 months and go grab a new one?

Please don't respond if you feel like the option is just writing a check for the truck and walking away. Not everyone is made of money.

Buck
#183

goob

Buck,
I think I would talk to your tax man and see what he says. I work for GM so I don't really know how the Ford program works, but I think you can use the rebates on the Smart Buy. Then try to get the best rate or no rebate and 0%. I just looked at a new truck myself, but I think I would talk to the accountant and see what he says and go from there as to programs. Let me know what he says.
Mike

buck183

Goob,

Thanks for the reply. I was gonna call the accountant tomorrow. Thought I'd pick everyone's brain in here first.

Buck
#183

Sydwayz

Buck, I do not have a lot of input for you; but I can let you know what I went with. Brett Dean, (bsag on OSO) made the 0.0% for 60 months really attractive for me last fall; and I had to go for it. Good luck.

buck183

TTT

Anyone else....thought I'd get more response about buying a truck than this?

Sydwayz....I can see where that would be REAL attractive. My problem is after 2-3 years it's cheaper for me to buy another one then keep on that's paid for.

Buck
#183

h2owarrior

Well, If you can pull that off, why on earth are you asking people on this board for advice $20,000 in taxes on a $40,000 purchase and only pay $7200.

Dude......I am just a simpleton when it comes to this deal.......I paid cash and as you said......you do not want my opinion