Buying a Semi-Truck: Should You Buy a New or Used Semi?
Buying a New Semi-Truck
The Advantages of Buying NewNew trucks can come with a wide variety of bells and whistles, making them appealing to any potential truck owner. Some of these perks include:
- You’re Covered by a Warranty. When purchasing a new semi-truck, they will typically come with a warranty, meaning that if anything were to go wrong it would be covered. Used trucks may also come with a warranty, but this will vary based on where you purchase the semi-truck.
- Top of the line amenities. When you purchase a new truck, you get to be on the ground floor of whatever cutting edge technology is released. With a new truck, you get complete freedom to choose whatever features you would like, given that they are in your price range. Older trucks may not yet have features you may want, which can mean costly additions.
The Drawbacks of Buying NewHowever, purchasing a new truck is easier said than done. There are several drawbacks to new semi-trucks as well:
- It’s more expensive up front. The cost of a new semi-truck will definitely be more than anything you will find for a used truck. While this does come with more benefits and a warranty, the initial cost will be significantly higher.
- It requires a long-term commitment. If you aren’t planning to be on the road for a considerable length of time, it may not be in your best interest to buy get a brand new rig for your business. This could leave you with a high loan repayment even after you’ve left the industry.
Buying a Used Semi-Truck
The Advantages of Buying Used
- There’s less risk involved. If you plan on using your truck only during one season or don’t intend on logging that many miles, getting a used truck is a great option if you have no desire to have a significantly higher loan.
- Cheaper upfront cost and lower depreciation. The initial costs of used semi-trucks are vastly lower than newer trucks, and they depreciate at a lower rate. A new truck loses a great portion of its value the second it drives off the lot, whereas older trucks lose value at a much slower rate. This can make it better for resale value as well.
The Drawbacks of Buying Used
- It may be more expensive in the long term. Used trucks may be cheaper when you purchase them, but further down the line, you may find that used trucks can be a money pit. Used trucks typically have higher fuel costs and will need more repairs in the future, making it costlier in the end.
- You have less knowledge of the truck’s history. When purchasing a used truck, you may not know the entirety of the truck’s history. There may be reported issues, but a previous owner may not have been honest about engine troubles or tire issues that may have happened in the past. Buying a new truck comes with a certain peace of mind that you will be the first owner, meaning that no unknown issues exist.