Should You Lease Your New Truck?

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Should you Lease Your New 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 39 years, followed last year by the Chevy Silverado and Ram pickup. But top-of-the-line trucks are expensive and many people who purchased trucks last year find themselves with astronomic monthly payments. What about leasing a pickup truck?
 
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!
With great lease deals available on your favorite pickup truck make and model, it is worth considering your options. Should you buy or lease a new pickup truck? Keep in mind that the majority of automakers are offering aggressive APR lease 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 lease term on the truck you want.
 
In our survey of 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 pre-determined 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.
Pros to 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 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 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's "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 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 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 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.