Going to Indiana to buy a new Travel Trailer

[Itchytoe]

Originally Posted by HJLowell

The truck depreciated $60,000.
In 10 years.
Thats $6,000. Per year cost.
Or $500. Per month.

Even if you pd cash for the truck there is an interest cost added because the cash has value. Even at 4 percent in savings.

Whoa now. Now you're talking about paying cash vs financing and using the cash as an investment, but that's not part of the cost of the vehicle's ownership. It certainly can be a good idea to finance and use your cash for other purposes, but you're reaching way too far once you start considering lost investment possibilities as part of the cost of a vehicle.


Besides, the more stuff you throw into the cost of the vehicle, the less those 2,200 miles cost you.

What none of you are figuring is your cost of
( Funding Depreciation each and every Month .

Except we actually are. That's the $60,000 that you lose. That's quite literally depreciation at $500 a month for 120 months.

A similar new truck is now $80,000.
Thats 8,000. A year you have to save to be able to replace the truck.
So true value depreciation is 6,000. Annually
And true replacement savings cost is $8,000.
Thats $14,000 annually to start out.

Now you're just rolling in the cost of the replacement vehicle into the first. That's not part of what the first vehicle costs you. That's the second vehicle's cost.
By that logic, the first vehicle you ever buy actually costs you as much as every vehicle you'll ever own in your entire life.

[HJLowell]

Please do a search for.

( Funding Depreciation)

How to fund depreciating asset's.

Every company has to use this method or they would be out of business.

Say a contractor invested 1 million dollars
In equipment.
And doesnt figure
( funding depreciation) as a true cost when he sets his rates, to charge for work.

Like your not for figuring millage.

The contractor wins lots of bids because he is the lowest bid.

In 10 years his equipment is totaly worn out.
He may or may not have the million pd off.
With what he charges, charged he cant afford to fix the equipment nor buy new.

Equipment costs has increased 3 to 5 percent annually for ten years.

Now he cant trade or sell his junk equipment for enough to finance more.

He lays everyone off and gets a job to put food on the table.

All the contractors that charged ,figured funded ( funding depreciation true cost.
Have new equipment, no payments and are getting paid accordingly
They probably hired the first guys layed off help.

This is a very simple CPA accounting principle.

But by not following this accounting rule.
Many a farmer , contractor, trucker, machine shop has filed bankrupcy or osed the doors and layed off all employees.

This is why the American public pays the banks instead of paying them selves.

Financing everything.
Wear out a $60,000. Truck purchased 10 years ago. Paid how much interest on that truck.

Now you have to borrow to buy a $80,000
Truck and pay interest on that.

If you figure true cost of cash, depreciation
Replacement Millage.

Its over twice what your figuring.

Just ask a trucking company account CPA.

Or a farmer that went broke because all his equipment is now junk and he cant afford new or even the parts to fix.
Because he didn't ( fund Depreciation annually)
So his crops are ready to harvest.
He has nothing to harvest with.
New combines are $300.000 ???plus
Bank says No, No

Trucking companies with junk trucks dont pass DOT inspection.
And they cant find loads because they are not dependable.
And no cash reserves set aside.

Bank says No, No

Google search

Funding depreciation
Funding depreciating assets ???

Study the method.

Untill you , we, me comprehend the concept
We will always be a slave to the bank.

Lets see, we work tilk Mat to pay Uncle sam.

From May to August we pay the bank .

YIPPPEEEE
We get to keep what we earn in
September, October, November December [emoji106]

Are we not the lucky ones.

Bankers retire in 15 to 20 years with tons of bank stock . ??? Good for them

They Do Love us All. [emoji847][emoji847][emoji847][emoji23]

[Itchytoe]

Originally Posted by HJLowell

Untill you , we, me comprehend the concept
We will always be a slave to the bank.

Then I clearly understand all the concepts involved because I haven't had a loan of any kind in years.


Businesses fail because they don't manage money well. That's not the same thing as their equipment costing more than they think. You're still trying to attribute things to the cost of a vehicle that simply don't apply to that vehicle.

[NomadBD]

I had no idea this post I started would turn into a debate on finance, vehicle wear, and depreciation. Nevertheless, I'm happy with my purchase as I got the deal I wanted at the finance and interest rate I wanted. Also, I got a memorable trip out of it.

Financial arguments, both for and against my trip, have certainly been beaten to death on this particular post. However, This is not my first "rodeo" as I outright own my truck, car, and motorcycle- all of which were bought new, financed, and paid-off early. And, I'm retired.

At the end of the day, for me anyway, it's all about living within my means which certainly makes me happy as this allows me to do the things I like doing.

Now, where did a put that fishing rod?

[Arch Hoagland]

Originally Posted by NomadBD

I had no idea this post I started would turn into a debate on finance, vehicle wear, and depreciation. Nevertheless, I'm happy with my purchase as I got the deal I wanted at the finance and interest rate I wanted. Also, I got a memorable trip out of it.

Financial arguments, both for and against my trip, have certainly been beaten to death on this particular post. However, This is not my first "rodeo" as I outright own my truck, car, and motorcycle- all of which were bought new, financed, and paid-off early. And, I'm retired.

At the end of the day, for me anyway, it's all about living within my means which certainly makes me happy as this allows me to do the things I like doing.

Now, where did a put that fishing rod?

Glad to hear you had a good trip. I assume all went well.

[bixler2]

I am glad to hear that the trip to Indiana was enjoyable. I hope you got some good Amish cooking and enjoyed some of the stores in Shipshewana. The weather can be the big factor on an good trip or a nightmare. Like most of the country, we are currently looking at below normal temperatures. I winterized my TT last weekend which did not take very long. Never moved off the parking pad for the entire year. Too many surgeries and a wedding for my daughter messed up our camping trips. We plan on making up for it next year.

[NomadBD]

Thanks,

Fortunately, I do not require winterization where I live. Although, if I ever move to an area where I do then I will need to consult The forum on how to do it! We picked up our trailer in September, and the weather was great all the way back.

Originally Posted by bixler2

I am glad to hear that the trip to Indiana was enjoyable. I hope you got some good Amish cooking and enjoyed some of the stores in Shipshewana. The weather can be the big factor on an good trip or a nightmare. Like most of the country, we are currently looking at below normal temperatures. I winterized my TT last weekend which did not take very long. Never moved off the parking pad for the entire year. Too many surgeries and a wedding for my daughter messed up our camping trips. We plan on making up for it next year.