Why buy new?

[koololdman]

I've only been in business for 5 months, but all the employers I worked for in the past have bought new work vans every 2-4 years.
I'm wondering why?
When I grow enough to add employees, why should I consider new, instead of used, vans. Any thoughts from you guys?

[Breeze]

Used so when they wreck um it wont be such a big loss.

[diceman]

Couple reasons, like reliability, very important if you have a good biz, down time in the shop can cost you work plus customers. When vehicles use up their warranty it also gets risky, big expenses can be added to the down time.
And of course there is the depreciation factor, you depreciate major investments off your taxes over 3-5 years, when that is gone, you lose the deduction.
So consider a new truck, they have it all figgered out the cost less write off and etc. Once that is built in, it's the only way to go.
I have never bought a used truck for work.:chill

[diceman]

Don't ever lease one though, when ya go to turn it in it will be beat to hell and cost you a fortune in fees.:bj
Hope biz is going good for ya so far Kev.

[koololdman]

Couple reasons, like reliability, very important if you have a good biz, down time in the shop can cost you work plus customers. When vehicles use up their warranty it also gets risky, big expenses can be added to the down time.
And of course there is the depreciation factor, you depreciate major investments off your taxes over 3-5 years, when that is gone, you lose the deduction.
So consider a new truck, they have it all figgered out the cost less write off and etc. Once that is built in, it's the only way to go.
I have never bought a used truck for work.:chill

Thanks for the reply, Dice. But don't you still get to claim the 38 cents a mile deduction on any vehicle?

[diceman]

You can still write off gas, expenses, maintenance and etc. But deducting say 20K spread over 5 years, 4K a year, is also a consideration, plus the other things. Comes right off the Schedule C.

[Breeze]

You get to deduct a much larger amount first year you put the major asset in service, think its around 30k but I didnt do taxes this year or buy much last year to remember.

You need to buy it soon in the year, not half way through. As for deductions, if you go mileage keep a good log and yes its up to .38/mile or more. You can't deduct expenses for the truck if you use mileage allowance. Got to pick one or the other and stick with it. For more than one truck used in your biz you have no choice but to use mileage deduction. It turns out to be best way to go sure wish I did that back in 1998, even with all my truck repairs mileage would have been better deduction.

For new techs I would not give them a new truck, late model should do, use it as a test truck and move up to new later on, but then what do I know, just my opinion.