My husband bought a BIG truck – Is he nuts?
He just retired and managed to find a great part-time job. The old pickup he’s been driving for five years is just not trustworthy anymore. So he decided to buy a big truck, a 2005 F150, V8, with extended cab. Gas prices have been over $4 a gallon for several months, so at first blush it sounds like a really bad idea. I figured there was a good reason auto dealers are trying to get rid of trucks; after all, this is the same thing that happened in the late 1970s, in the “gas crisis” of that time. But…
The guy who sold it to him is a carpenter who was out of work all winter (this is the Midwest, where we had a record-breaking winter, and now are dealing with the aftermath of floods), so he sold the truck at less than blue book. I should tell you that my husband drives less than 5 miles to work every day, that most of our family is within a few miles of us, and that we have another vehicle to drive on trips. Surprisingly, the truck gets 21 mpg on the highway! We also intend to keep the truck as long as possible, until it falls apart (or we do).
I have a feeling this kind of sale is happening a lot these days, as people deal with high gas prices and inflation, and the problems of economic dislocation. We are in an economic shift right now. We have to re-learn some things:
1. Gas prices will shoot up periodically, and people driving big vehicles are going to be stuck
2. House prices are not always going to go up; sometimes that investment drops in value.
3. Saving/conserving/not spending is always a better idea than debt.
4. In inflationary times, savers do better than debtors.
What do you think? Are you looking at downsizing your vehicle? Or are you grabbing a good deal on something?
3 Comments
He can still save some bucks on gas by maintaining his vehicle and driving smart: 1) Curb road rage. Speeding, rapid acceleration (jackrabbit starts), and rapid braking can lower gas mileage by 33% at highway speeds. Drivers can save up to 80 gallons of gasoline, or up to $310 a year, by driving sensibly on the highway. 2) Inflate Your Tires. Keeping your tires properly inflated is simple and improves gas mileage by around 3%, saving up to 20 gallons of gasoline, or up to $75. 3) Decrease Your Speed. Speeding costs! Gas mileage usually decreases rapidly above 60 mph. Each five miles per hour over 60 mph is like paying an additional 20 cents per gallon for gas. Try checking out http://www.drivesmarterchallenge.org for more tips. – Kat, Alliance to Save Energy
No he is quite sane. I would say he is in the 20% of people who will survive the current economy and be laughing into the next economy. This is buyers season like never before. The last thing you want know is heavily loaded credit lines. Buying second hand for cash is very good sense.
Thanks for the comments. I agree that the people who prosper in difficult times are those who seize the opportunity and think long-term.