Why is buying a pre-owned truck now a smart move?
April 18 will be here before you know it.
Let’s talk about everyone’s favorite topic: taxes. In particular, Section 179 of the IRS Tax Code and the accompanying rules on equipment (and other business expenses) depreciation schedules.
Bored yet? Don’t be. This can save you a lot of money if you purchase, finance or lease a new or pre-owned truck and put it into service by Dec. 31, 2022.
In a nutshell, Section 179 allows companies to deduct the full purchase price of qualified business expenses in the same year the purchase was made. It was included in the Tax Cuts and Jobs Act passed into law in 2017, and its full benefits expire this year. That leaves about six weeks to take advantage of a very attractive financial incentive to replace commercial vehicles or expand a fleet before year’s end.
Here’s a sample scenario: Buy a truck this year and put it into service, write-off the purchase cost on your company’s 2022 tax return (up to a total of $1,080,000), and watch your taxable income for the year go significantly down.
Used Trucks vs. New Trucks
While this is great financial motivation, it may be even more attractive if you’re looking to purchase one or more pre-owned trucks. Supply-chain shortages (especially microchips) have made buying a new truck difficult, if not impossible. While this same situation is playing out in the automobile market, the supply-demand challenges have driven used cars to near historic highs, as much as 38 percent more year over year, according to CNN. Meanwhile, demand for quality pre-owned trucks is also high, but the price impact on the pre-owned market is far less severe. In fact, according to J.D. Power, used truck prices have been consistently going down throughout the year, as much as 15 percent per unit.
And, if you know where to look, there are great deals on a wide selection of used trucks. The uncertainty of the new truck supply and fleets extending their trade-in cycles have resulted in many dealerships, auction houses and wholesalers to shy away from adding to their pre-owned inventory. Chances are if you browsed used-truck inventory at a particular retailer a few months ago, many of those vehicles are still on the lot and priced the same.
JX Truck Centers have taken a different approach. We continue to add pre-owned inventory to meet demand and customer needs. The selection of used trucks throughout our 28-dealer network is exceptional and always rotating. Visit one of our dealer lots, or browse our online inventory, and you’ll find a great mix of makes and models.
Added Value (Beyond Tax Incentives)
Best of all, JX’s pre-owned trucks are competitively priced as we continually adjust to current market values.
In addition to selection and price, there are a multitude of reasons that make our overall value proposition unbeatable:
- We have two truck financing divisions – JX Financial and Alltrux Capital – to serve the wide range of customer needs and circumstances. Our financing experts can also walk you through the Section 179 benefits of buying a truck today and not putting it off until next year. They can show you how, more likely than not, buying a truck before Dec. 31 is a good financial move.
- All of our pre-owned trucks go through a comprehensive inspection before they are JX Certified. It goes far beyond just a general D.O.T. inspection and a thumbs up. Every inch of the vehicle, inside and out, is evaluated to ensure truck integrity and customer satisfaction. If repairs or replacement parts are needed, we take care of that before it goes on the lot. Common wear items, such as HVAC filters, are automatically replaced. We perform a regen and make sure the DPF is functioning properly. The engine and aftertreament system leaves the lot with at least a one-year warranty.
- You’ll also be buying from a company with a 52-year history and a great reputation for serving the full range of customer needs with the highest levels of satisfaction. Sales, financing, service, parts, and leasing and rental can all be handled within our network – a single source for all of your truck and fleet management requirements.
Contact your local JX Truck Center today to find a great pre-owned truck that comes with best-in-class peace of mind. It also likely comes with tax incentives too good to pass up. So while JX’s dedication to quality products, aftermarket support and customer satisfaction aren’t going anywhere, the full benefits of Section 179 are. Let us help you make the most of it before it expires. And let us show you a customer experience that will earn your business for years to come.