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Comment by mrfusion | Hacker News Reader

I really found the opposite last month when I was truck shopping. The prices at carmax weren't much lower than buying new. I even found one case where it was cheaper to buy new!

I'm wondering if people hate the dealership experience so much they're driving up the price of used cars?

I'm still just utterly confused by the used truck prices I was seeing.

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Trucks are used as work, and puzzlingly, luxury cars in the US. They hold their value well because of the new standards seem to be making long term maintanince harder and more expensive. Pre-DEF Desiel engines, Normally aspirated V8 engines, Thicker sheet metal, Less sensors to replace over rough use are a great example of factors making many used trucks sell for more than new.

My hope is that electric trucks will be more popular.

The higher power requirements make them pretty crappy when it comes to range, particularly if you are actually using it to tow or carry something heavy. Compare gas mileages of trucks to cars to see what I mean.

Trucks are known for being incredibly reliable and fitting almost every niche all at once. Need to haul 5 people? You can have a pickup or a sedan. Need to haul lumber? You can have a pickup or a van. Need to drive down a 2 track road once or twice? You can have a pickup or an SUV. Need to move a refrigerator? You can have a pickup... well really just a pickup. Need to haul a trailer? You need a pickup. Need to park downtown? We invented rear-view cameras for that, no need for a subcompact anymore. Need good gas milage? Why? Gas is cheap.

They last forever, are known for being inexpensive to maintain, and in the rare occasion you actually need a pickup, now you don't have to rent one. There's no situation where you need a sedan but a four-door pickup won't also work. So they hold their value very well.

All of these are true. On top of that, they're lifestyle and identity products. That carries a massive premium. Those yoga mats you see suburban moms hauling around probably cost $0.30 to make, but they'll easily sell for $20+. Ditto the pickup. When your daily driver is also a powerful class and in-group signal, it's suddenly worth a lot more.

Trucks are very expensive if you buy the same silly trucks that everyone has. The four door short bed truck is a gas guzzling inadequate tool. In large trucks, 3/4 ton and up everyone wants to buy an expensive to maintain diesel engine. A lot of fleets are moving back to gas because the economics of diesel don't make sense with the much higher maintenance costs. You can use all of this consumer behavior to your advantage by buying unpopular but incredibly useful trucks at low prices. Get the longbed regular cab models with gas, they are hard to find but super cheap when you do. In the past 4 months I bought a 2004 F250 with 89k miles in great conditions (no scratches in the unlined bed) from a dealer for $6800. I also bought a 2000 GMC 2500 with lift gate (body was ok, lots of small dents, mechanically super skookum) with 56k miles for $5000 from a private seller. When I looked for trucks, I regularly saw 2500/F250s with over 150k for over $20k (those were diesel, 4x4, crew cab). Yes the trucks get around 14 mpg and can only hold 3 people. I'm not that popular, in the 65k miles I put on my old car over 3 years, less than 1000 were with more than 2 people. I have enough money left over that I will probably be buying a prius or a leaf for my second car.

http://www.mrmoneymustache.com/2015/04/28/what-does-your-wor...

> The four door short bed truck is a gas guzzling inadequate tool.

Those little truck beds are so cute. They look like a toy truck bed. Can't even put a sheet of plywood in one. Since the cabin is basically an SUV, the truck bed is basically an open-air trunk.

Afaik trucks are the strongest US auto segment (iirc Toyota can't make enough of them right now and are increasing production capacity in their Mexico plant), so maybe you hit an outlier segment.

That's really interesting. It is the low gas prices? Or strength in the construction sector?

The former.

A 4dr crew cab can haul the kids to soccer and move furniture all while requiring one parking spot. It's a good multi-tool at the expense of operating costs. The cost of insurance, registration and (possibly) parking buys a hell of a lot of gas.

Think of a vehicle as having indoor storage, long term comfort (space to not be cramped) outdoor storage and passenger capacity. Crew cab trucks are used like full size sedans with outdoor storage instead of a trunk. That's a pretty good blend for most use cases since most people can use the second row as a trunk when not carrying passengers.

Insurance, registration and parking costs are a disincentive to buy specialist vehicles (like the electric commuter cars HN loves).

Trucks hold their value better than cars.

>Certain segments are shedding value even more quickly. Subcompact cars, such as the Honda Fit, and large sedans, such as the Chevrolet Impala, are depreciating faster than average. Big SUVs, vans, and pickups are holding their value a little better, and imports tend to drop more quickly than domestic models.

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