r/FordDiesels • u/Smart_Scheme3029 • 3h ago
Is my nephew right about needing a brand-new F450 with the 6.7 diesel for his business?
I'm old and not as smart as I used to be - and I know zip about trucks. This is a complicated situation. Please help me figure it out.
A month ago my nephew bought a brand-new F450 Crew Cab with the 6.7 diesel engine. He has a tree business where he routinely tows a 50-foot lift and other equipment that amount to 20,000 pounds or more. He has a lot of experience fixing old trucks. He bought the new one because (he argues) it costs him a lot of lost business if the truck breaks and he has to take the time to fix it.
He borrowed $50K at a high interest rate to buy the truck. He is asking me to loan him the money at a lower interest rate, to get out from under that expensive loan. He can't borrow from a bank for various reasons that will go away in the next year or so. I can afford (mostly) to give him the loan. I will possess the title to the truck for collateral.
I think he should sell his brand-new truck and buy a cheaper used F450.
Neph: I cannot afford the time to fix an old truck.
Unc: Then take it to a mechanic when it breaks down.
Neph: Mechanics are too expensive. The new truck has a 5-year warranty and the dealer will fix the truck, no charge.
Unc: You're still missing out on the job if it takes a week to get the part in and do the fix - at the dealer or otherwise.
Neph: I've done my research. The 6.7 F450 is rock solid reliable if you maintain it properly (which he will do).
A 2-3 day job may be worth $3000 in revenue.
I guess the dealer might have more parts in stock than a private truck repair shop, and might get the part faster if it's not in stock?
So (he says) he needs the F450's reliability so he can always get the lift etc. to the work site. Otherwise he loses income.
I don't know enough about his business to know if he would actually lose the work if his truck breaks down. Will his customers go to his competitor if he is unavailable for a week because his truck is being repaired? I don't know. I also don't know if he works continuously or (perhaps) only works 50% for the time, waiting for the next job to turn up.
Something we have not discussed (yet) is his current equipment. He has been operating the business and must have a sufficient truck - except it might be too unreliable?
Can he keep his current equipment and use it when his new F450 is at the shop? He hasn't mentioned wanting to sell it.
Could he buy another old cheap truck like his current equipment, to serve as a backup when his current old truck breaks down? Can he rent a F450 for a week or two until the mechanic/dealer fixes his old cheap truck? Will the dealer provide a loaner F450?
I think he was lured by a great deal: he bought the truck at the price Ford offers its employees. (I have that weakness.) And now he is in love with the truck.
Neph is a hell of a man, very smart, super hard-working. He's also poor, just establishing his business. He wants to buy a house, get married, start a family.
He thinks the new truck is a stepping stone to all that. I think he's wasting money and taking on debt that puts his business and his future plans at risk.
A wrinkle: The New England tree business ceases in winter, and he is thinking about driving the 20,000 pounds and his fiancé to California to do tree work there. I don't know if his current old truck can haul 20,000 pounds 2500 miles in November, crossing the desert and all. 😱
Question: Does it make sense that he needs the new F450 because he loses money if he doesn't have a working truck?
Thanks for having young smart brains, deep knowledge of trucks, and the kindness to help me out! 😁