Buying a truck is an exciting time in your life. It gives you the freedom to go places and do the things that you want. However, it can also hold you back if you purchase a truck that you can’t afford. In this video, you will learn why.
In this episode of The Ramsey Show, a caller comes in to ask Dave about a recent truck purchase. This man bought a new $50,000 truck as opposed to a slightly more expensive used truck from the same year.
He wants to know if this was a good purchase. At first, this may seem like a steal. However, Dave found out that this man only has about $200,000 of assets. Therefore, this new truck makes up a quarter of his assets and a third of his earnings. This means means that a large chunk of his assets are depreciating rather than appreciating in value. Though the truck was originally cheaper than the used truck, it lost significant value after he drove it off the lot. This is the issue with new cars. You can get a much better deal at a used truck dealership if you look at models that are a few years older than the current models.