Lease a Pickup Truck

Pickup trucks are a big deal in America. Last year consumers purchased over three million of them. The faithful Ford F-150 pickup has been the best-selling vehicle in the U.S. for 40 years, followed by the Chevy Silverado and Ram pickup that are neck-and-neck each year for second place. But top-of-the-line trucks are expensive and many people who purchased trucks last year find themselves with astronomic monthly payments. What about pickup truck leasing?

Currently, about 30 percent of people lease rather than own and in the last five years, the number of people who are leasing pickup trucks has more than doubled! Keep in mind that the majority of automakers are offering aggressive APR offers and that some of the best lease deals are regional in nature. You'll want to check your local Lithia Auto dealer to find the best current leases on the truck you want.

In our survey of the best pickup truck lease deals as of this writing, we found a new Ford Ranger lease of just $289 for 24 months with $3,789 due at signing. The best lease deal we could find for a Honda Ridgeline is $329 for 36 months and $3,099 due at signing. The mighty Ford F-150? The best lease deal we could find is currently $319 per month for 36 months with $4,179 due at signing.

Compare those prices with what people are shelling out for a monthly payment when purchasing a new truck. An F-150 with XLT trim costs around $36,000. With a few grand down, payments for 48 months would be around $700. However, leasing is not buying, and there is a lot to consider when leasing a vehicle, both pro and con. Let's take a look.

Leasing a Pickup

With leasing a new pickup truck, you are basically renting a new truck from a dealer for 36 to 48 months. Once the lease period ends, you can either return the vehicle to the dealer, or return the vehicle and get a new one, or you can purchase the truck from the dealer for a predetermined amount as defined in your lease agreement. Advantages to leasing include that your monthly payments will likely be lower if you lease rather than purchase.

Your monthly lease payment is based on the sale price that you negotiate with the dealer, just like when you buy a truck. It also depends on the length of the lease. With a lease you also have to consider the expected mileage.
The lease contract sets a certain maximum number of miles you can drive per year. Most leases come with a 10,000-mile annual allotment.
Your monthly payment will go higher if you drive more than 10,000 miles. In other words, you'll owe extra money for every extra mile at the end of the lease. Lots of people get a truck because they want to go on vacations and adventures.
If you intend to put high miles on the truck, a lease might not be good for you. With a lease, you also have residual value. This is the value of the truck at the end of the lease, with its depreciation figured in.
If you decide to buy the truck after the lease expires, this is the amount you'll pay. Other factors include a rent charge, taxes and fees that are added into the lease and affect your monthly payment.
Some dealers or automakers also require a down payment for a lease truck.
The more you put down up front, the lower your monthly lease payment will be.

Another upside of leasing is that you get to drive a brand new truck every few years. If you like to change up your ride, and always get the latest technology such as Driver Assist, leasing lets you return your vehicle for something new and exciting. You won't have to worry about truck maintenance because your new lease truck includes a warranty for at least three years, so any repairs are covered. More savings in your pocket. You'll still have to pay for oil changes, though.

With a pickup truck lease, you never have to deal with resale, you just return the truck. The only thing you must worry about is paying any end of lease fees, including those for abnormal wear including any dings and scratches to the vehicle, or additional mileage on your program. Unlike leasing a car, trucks are workhorses, and it is easier to get scratches and some dings. Since you will not be charged for them, you will want to install a bed liner in your lease truck.

Pros to Truck Leasing

The biggest pro for leasing a truck is the lower monthly payment. Going head to head against a finance payment, if the average monthly truck payment is in the $600 to $700 range, the average monthly lease payment for the same truck is just over $400. That's at least $200 a month in savings. Plus, as gas prices rise, the value of vehicles with a low MPG (such as pickups) lose their trade-in value. When you lease a truck, its resale value is not your concern.

Lower Monthly Payments than a Loan
No Repair Costs, Low Maintenance
Drive the Latest Truck every three years
Low Money Up Front
Pay Less Sales Tax

Cons to Truck Leasing

The biggest cons for leasing a truck is that you never own the truck, and when you turn it in, you'll be responsible for the wear and tear charges. Most folks use their pickups to haul, tow and sometimes go off-roading, right? That is exactly the kind of fun that is tough on trucks. If the truck has more than a few scrapes and dents, you'll be paying for those under the lease agreement "wear and tear" clause. Getting the truck back into pristine condition can cost you thousands of dollars.

You're not building equity in the truck
If you go over the expected mileage, you'll pay more
Rent charges, taxes and fees add to your monthly payment
You have to keep the truck in good shape
You'll pay for dents and dings

Buying a Truck

With buying a truck, you find a new vehicle you want to buy and either pay for it on the spot, or get a loan and make monthly payments until the loan is paid off. Many people would prefer to buy rather than lease, especially if you can get zero percent financing on your new truck loan. Advantages to buying a new pickup include getting a great discount from the automaker or a super low APR, financing for up to 84 months, and cash bonus offers. Plus, at the end of the loan, you own the truck.  

When you purchase a truck, you may have higher monthly costs including your loan payment and maintenance, but you own something at the end and you can do whatever you want with it because it is your truck.

Pros to Truck Buying

Modify your vehicle as you please
Save money over the long term
The ability to sell or trade in the vehicle
No mileage constraints, restrictions or guidelines
No wear-and-tear charges

Cons to Truck Buying

Higher monthly payments
Ongoing post warranty maintenance expenses
High depreciation
Longer term investment
Large down payment

The Bottom Line

If you're interested in low monthly payments on the latest truck with fresh features and aren't planning any heavy off-roading, a pickup truck lease might be right for you. On the other hand, if you enjoy being rough with your truck, spending a lot of time off-road, or are planning long trips and typically drive more than 15,000 miles a year, purchasing the truck might be best.

Calculate your Truck Budget

Loan or lease, a great place to get started is with Lithia Auto's Payment Calculator. Use our calculator to narrow down your options based on how much your monthly payment or overall budget will be. Whether you're interested in buying or leasing a truck, Lithia Auto is here to get you the best deal on your next adventure vehicle.

Lease a Pickup Truck

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