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Everybody has hit the nail on the head about the justifactions for buying new or rebuilding a older unit. However one item that has been over looked is that Class One's need to buy new every so often depending on the financing of the purchases they made before. One person talked about a 20 year life of a diesel,to a Class 1 this may be correct not because the locos are used up but because the tax life the units are has expired. when this happens the Railroad must look at the units and decide to rebuild in kind to as new condition or to buy new units. The last I knew a rebuilt unit is good for 10 more years of tax right offs where a new unit will give you 20 more years. Most Class1's do decide to buy new because of the upgrades in new locos which now means better fuel economy and reliabilty. This also means that the is a good selection of good used locos for smaller lines. There is also other varibles like most roads dumping SD40-2's, SD50'S, SD60's, GP50's, and loads of GE's in the used market was these units were leased and are not eleigable for tax credits to the Railroad. This is one reason that UP has kept many SD40-2's and let newer units go. <br /> The whole issue is money driven for sure
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