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Early Retirement Extreme Forums » Transportation Questions

1. 

   Piper
   

   Journeyman
   Joined: Jan '11
   Posts: 138

   I have a pick-up truck my dad gave me in 1994. It has only 87,000 miles. I pay about $300 a year for insurance and tags. I drive it about 1000-2000 miles a year, mostly for long trips or errands that require a truck. I usually use my Vespa otherwise if I need to drive. I ride my Vespa year round, even in cold or rain, unless the rain is really severe and there's flooding.

   I keep the truck for a few reasons. First, if I need to haul things it is very handy. I also like to take my bicycle to meet a local bike group from time-to-time. I will also use it if I have to run an errand in a city about 30 miles away. Every time I start thinking I should sell my truck, I end up having to go to that city or haul something, and then I'm really glad I still have it. Also, I think that if all else failed, I could hire myself out to haul things for people if I ever was unemployed and needed money. With a camper shell I could live in it. I've heard that if you don't have car insurance you are penalized if you ever have to get car insurance in the future, so I also keep it for that reason. But I do have motorcycle insurance so I don't know if that would be an issue for me.

   What would you do?

   Posted 2 years ago #
2. 

   dot_com_vet
   

   Master
   Joined: Jan '11
   Posts: 377

   $300/year is really cheap. I'd keep it for bad weather, bike hauling, etc.

   The Vespa is a great choice for your daily driver, though.

   Posted 2 years ago #
3. 

   mikeBOS
   

   Master
   Joined: Nov '10
   Posts: 554

   If someone offered me a functional truck for $300/year, I'd take it so long as I had a place to park it.

   May as well hold onto it, since you're getting some use out of it, until it needs a major repair, then think twice about it.

   Posted 2 years ago #
4. 

   sky
   

   Journeyman
   Joined: Jan '11
   Posts: 196

   Keep it. I often regret selling my old Toyota truck, like about every month when I make payments on my new car. My car sits on the driveway for most of the time, because I walk or bike to work and try to shop as much as possible using a backpack and walking or biking.

   I hope to make up the car payment expense over the long term. You get your payback by stretching the service life of the vehicle as long as possible.

   I would recommend keeping it as long as you can.

   Posted 2 years ago #
5. 

   George the original one
   

   Expert
   Joined: Jul '10
   Posts: 1,941

   Keep it as long as you're not having to pay to store it between use and you're prepared to deal with the maintenance that's still needed even though it sits (change fluids, flush/bleed brakes, charge/replace battery).

   If you have to pay for parking/storage, then it's going to turn into a money-sucking liability.

   Posted 2 years ago #
6. 

   Surio
   

   Sorcerer
   Joined: Dec '10
   Posts: 601

   We had a somewhat similar discussion with one "mrsrich" recently. There's a link to a post by Jacob in that thread. It is about why it makes sense to hold on to an old car which is chugging along fine rather than a new doo-daa (or having no car when you seem to be cut-off in terms of public transport)!

   Posted 2 years ago #
7. 

   JohnnyH
   

   Expert
   Joined: Jul '10
   Posts: 1,363

   Can you be insured by the mile in your area?... That would really make it worthwhile to keep, assuming you have storage and are not moving.

   Also, checkout permanent tags. Some states have them for cars older than 10 years or so.

   Posted 2 years ago #
8. 

   Piper
   

   Journeyman
   Joined: Jan '11
   Posts: 138

   They only just passed something allowing for pay by the mile in my area. I don't think it's in effect quite yet. At least my insurance is based on what used to be a 7 mile commute. I guess I'll continue to keep the truck.

   Posted 2 years ago #
9. 

   HSpencer
   

   Master
   Joined: Jul '10
   Posts: 770

   Sounds to me as if you've described your truck as a rather big asset to you. I am into assets, have them, and tend to keep them as long as I personally consider them assets. You mention hauling items, and maybe a work/money earning vehicle/and a camper. If it is only costing you what you mention, and you can see a future need for it, then by all means keep it.
   I have a 1993 GMC Truck, with a hard shell topper on it, and this truck has done so much for me, it is a full keeper.
   In fact, I have thought DW could hire a back hoe when I die, and place me in the truck, radio on playing 60's rock and roll--(I can't get no----Satisfaction, oh no no no--) and a case of Ice Cold Killian's beside me, and just have the back hoe fill in the hole.

   Posted 2 years ago #
10. 

    dragoncar
    

    Expert
    Joined: Oct '10
    Posts: 1,287

    One side of the equation nobody has commented on is the amount you can get by selling the truck. I agree that $300/year is very reasonable, especially since you are still working and the truck could potentially generate income from hauling.

    However, what is the truck worth? Maybe not much, which is why people are ignoring the question. But if it's worth, say $2000, you have to consider that's at least another $80/year in opportunity cost.

    Posted 2 years ago #
11. 

    Surio
    

    Sorcerer
    Joined: Dec '10
    Posts: 601

    @dragoncar,
    Ahh.. The old price vs value conundrum.

    As a 1994 truck which was gifted to a non-consumerist (frugalist?) by her father, it has more value attached to it than a price tag, at least I think that's how most of us subconsciously read it. Equally, Piper herself has listed more "value" that is derived from the car (e.g., "With a camper shell I could live in it.") than a price projection. So I think subconsciously everyone has somehow tried communicating in a way that respects her thinking and in a language that reaches her in the best way.

    > "However, what is the truck worth? Maybe not much,"
    I would assume that's valid considering the universal law of car's age + depreciation... But USA-car-a-nomics (car's street cred, perceived value, old school muscle car...etc...) is Arabic to me, so I will refrain from poking my nose there.

    Well, that's my reading anyway.

    Posted 2 years ago #
12. 

    Mo
    

    Master
    Joined: Jul '10
    Posts: 442

    @Piper, I tend to agree with the chorus of folks who have suggested that keeping the truck sounds pretty reasonable, based on your current numbers.

    Perhaps another way to consider the issue is to think about what you might do differently if you didn't have the truck. Would you simply not go to the city 30 miles away, or would you rent a car, or pay a friend, etc? If you factor in fuel, you're probably paying close to $40/mo to run the truck-- keep it so long as you feel you're getting a good $40 out of it each month.

    Posted 2 years ago #
13. 

    hickchick
    

    Journeyman
    Joined: Jul '10
    Posts: 142

    I find that I miss out on a lot of money making opportunities because I don't have a truck. But that's out here in the sticks...

    Posted 2 years ago #

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