Total cost of owning a used pickup truck for 10 years
Simulates buying a 10 year old truck with 120k miles on it for $7500. It is going to need tires and some engine work in the near future, plus keeping it on the road in tip top shape is going to cost more than a new truck.
Includes depreciation, insurance, gas, routine maintenance, major maintenance (tires, brakes, engine work, etc).
* truck is driven 10k miles/year
* gets 18 mpg
* gas is $3/gallon
* annual registration is $50 / year (that may be way too low for some states)
* insurance is $75/month (you're a good driver without any speeding tickets right?)
* oil changes / routine maintenance are on average $150 per year over the 10 years (this truck has some miles on it, will need random stuff fixed).
* big ticket maintenance items like tires, brakes, engine service, come to $3,400 over the 10 year period. Since it was never under warranty, there is some hidden risk of being hit with a really high maintenance bill. If the engine and transmission both fail, the maintenance budget would probably be much higher.
Gas represents ~42% of the cost of ownership ($16k of the total $38k out of pocket). In this simulation the price of gas is fixed, so there is a hidden risk if gas prices go up.
Insurance is ~24%
Purchase Truck 7500
Routine Maintenance 150
Major service 1200
Major service 2 1200
Wealth Meta Admin
Jan. 16, 2018, 7:35 a.m.
Jan. 16, 2018, 7:23 a.m.