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Used trucks save you more money long-term by avoiding the steep depreciation that hits new trucks in the first few years. Should I buy a new or used truck? This question becomes urgent at the time you realize new trucks lose 20-30% of their value the moment they leave the lot. 

That number jumps to 40-50% within the first three years. The question of should I buy a new or used pickup truck has real financial weight, especially if you think about the cost of owning a truck per year over the long haul.

Used trucks are a great way to get cheaper monthly payments and lower insurance rates. Instead of paying $58,000 for a base model 2025 truck, you could buy a loaded 2020 with low miles for around $39,000. I’ll break down the true costs of new versus used trucks to help you make the best financial decision.

Upfront Costs: New vs Used Trucks

Purchase Price Gap

Used trucks cost significantly less upfront than new trucks, often saving $20,000 or more on comparable models. Purchase price differences create the most obvious gap in deciding whether to buy a new or used pickup truck. A 2025 Ford F-150 XLT with 4×4 sells for $56,000 new, whereas a comparable 2020 model costs $36,000 and saves you $20,000 upfront. As with the Ford, a RAM 2500 Tradesman drops from $61,000 new to $39,500 for a 2020 model, a $21,500 difference.

Insurance, Registration, and Taxes

Used trucks come with lower insurance premiums. Auto insurance rates drop by 3.4% for every year of your vehicle’s age. An eight-year-old truck costs about 25% less to insure than a brand new one. Buyers who finance $42,332 for new vehicles pay an average of $742 per month, while used truck buyers who finance $27,128 pay $525 per month. New trucks face higher registration fees. States like Michigan calculate fees based on the original MSRP. A new pickup truck with a $35,000 MSRP costs about $200-$250 to register, whereas a used vehicle over five years old runs $50-$150. New purchases add thousands in sales tax. With national rates between 5-7%, a $55,000 new truck gets you $2,750-$3,850 in sales tax. New trucks financed through loans also require comprehensive and collision coverage, which increases upfront costs compared to used trucks, for which liability-only coverage is sufficient.

Long-Term Ownership Costs Breakdown

Maintenance and Warranty Trade-Offs

Used trucks are cheaper overall, but new trucks can reduce early repair costs through warranties and slightly lower maintenance needs. Ongoing expenses determine whether buying a new or used truck makes financial sense beyond the purchase price. Maintenance accounts for much of the ownership costs. New trucks need less frequent service at first. The average annual maintenance cost for a RAM 1500 hovers around $800, while the Ford F-150 runs about $700 yearly. New trucks benefit from detailed bumper-to-bumper warranties covering repairs for 3 years or 36,000 miles and powertrain warranties extending to 5 years or 60,000 miles. These warranties reduce out-of-pocket repair expenses during early ownership.

Fuel and Operating Costs

Used trucks face higher maintenance demands. Owner-operators can expect maintenance costs of $800 to $1,500 per month for commercial use, though personal truck owners spend less. Fleet owners budget $5,000 to $15,000 annually per medium-duty truck for maintenance. Fuel costs dominate operating budgets, whatever the truck age. At 6 miles per gallon and $3.50 per gallon, fuel runs $0.58 per mile. At 8 miles per gallon, the cost drops to $0.44 per mile.

The total average cost of owning and operating a new vehicle reaches $11,577 per year. Owning a new pickup truck costs an additional $6,402 annually compared to a small sedan.

Total Savings: 5-Year and 10-Year Cost Comparison

Depreciation by Model

Used trucks deliver better long-term value because they avoid the steepest depreciation that new trucks experience. Calculating total ownership reveals surprising patterns when you decide whether to buy a new or used truck. The average 5-year cost to own a new vehicle reaches $80,238. This breaks down to $26,560 in year one, $15,192 in year two, $13,472 in year three, $14,183 in year four, and $10,831 in year five. New vehicles depreciate by 55% of their original value after five years.

Specific truck models perform differently. A Ford F-150 purchased for $37,500 loses 50% of its value, leaving a resale value of $18,750 after five years. The Chevrolet Silverado starts at $38,000, depreciates 54%, and resells for $17,480. A RAM 1500 purchased for $36,800 depreciates 55%, with a five-year resale value of $16,560.

Where Used Trucks Pull Ahead

Used trucks sidestep the steepest depreciation curve. But modern engines in newer trucks can save $15,000 to $25,000 in fuel costs over 200,000 kilometers. The cost of owning a truck per year varies substantially based on purchase timing. Reddit discussions about whether to buy a new or used truck highlight this data often. Used trucks win financially when you account for depreciation that the first owner already absorbed.

When a New Truck Still Makes Sense

The better choice comes down to your budget, your risk tolerance for repairs, and how much value you place on warranty protection versus lower overall cost. It also comes down to how prepared you are for unexpected situations like accidents or injuries, where the financial side quickly overlaps with legal questions, which is where ConsumerShield fits naturally in helping people understand what their options might look like.