If you are considering buying a new truck but do not want to finance it for any reason, there is the option of leasing it. However, before you go for it, it is essential to find out if leasing a truck is really worth it. There are differences between leasing and financing a truck, and checking them out helps you make a better decision. Visit eAutoLease.com to learn out more about truck leasing and if it would be the right decision for you. With expert advice and top-rated customer service, you can look forward to finding the best deal.
While some would prefer to buy a truck, others would go for leasing. While there are certain advantages to both, there is no specific way to determine the best option.
Read on to know more about leasing, how it works, and if you should lease your new truck.
What is a Truck Lease?
A truck lease is a kind of long-term rental. You can drive the vehicle for a preset number of miles every year or for the duration of the lease, but you do not own the vehicle. You return the vehicle at the end of the lease and pay any end-of-lease costs to complete your obligations.
Leasing has become increasingly popular in the past few years. Statistics show that more than 30% of all vehicle transactions are now leased, and this trend is expected to rise in the coming years. Even though trucks are not leased as often as sedans or SUVs, the percentage of truck leasing has doubled in recent times.
Take a look at the pros and cons of leasing a truck to find out if it will work out for you.
Read more: How To Return A Car At The End Of A Lease (Complete Guide)
Pros and Cons of Leasing a Truck
The best thing about leasing a vehicle is that it means driving worry-free for the duration of the lease. A warranty will cover it, and depending on the manufacturer, you may also get complimentary maintenance throughout the lease term. As the lease comes to an end, you can return the vehicle, avoiding costly repairs and maintenance needs.
However, along with benefits, leasing a truck also comes with a few downsides. Most contracts preset the number of miles you can drive the vehicle during the lease term. Also, as you do not own the vehicle, you have to return it to the dealership, and in case of wear and tear, you may have to pay extra fees.
Truck Leasing Pros
Lower monthly payments – You must know that new trucks are not cheap. As these trucks come with advanced safety, power, and handling features, they can easily cost upwards of $50,000, and with high selling prices come high payments. Leasing gives a chance to drive a new truck at lower monthly payments as compared to financing it. Statistics show you could save around $200 a month if you choose to lease a truck.
No effect on resale value – As a vehicle owner, a drop in the resale value may be a matter of concern for you, but when you lease a vehicle, cost reduction does not affect you. Even if the value of your truck goes down, you will not be affected. As long as you fulfill the terms of the lease, you can return the vehicle when the lease comes to an end.
Amazing truck driving experience – What makes lease so attractive is that you can get the latest model every few years. Even though the average car owner can keep a vehicle for about six and a half years, it does not mean you have to sit in the same vehicle.
A chance to buy the truck – If you liked driving the truck and want to keep it even after the lease term has ended, the leasing contract allows you to purchase it. You can go with this option if you are happy with the vehicle and want to continue driving it. You will have to buy it for the residual value that is determined at the start of the lease.
Despite the pros of leasing a truck, you must read the terms and conditions of your leasing contract and ask as many questions as possible to run into any problems during the lease term.
Truck Leasing Cons
Leasing may not be the best option if you plan to spend more on a truck off-road, want to keep it forever.
You are not the owner – You may find the charm of driving a new vehicle every time you lease, you are not the owner. You will own nothing once the lease comes to an end. If you had financed the truck, you may be halfway or more to paying it off by the time the lease ends. Moving from one lease to another prevents you from owning a vehicle or getting a break from making payments.
New down payment with new lease – If you want to continue leasing a new truck after every three years, you will have to make a new down payment to start a new lease every three years too. It is how leases work, and startup costs for most lease specials run about $3,000.
When you lease, you may have equity in the truck that could be used as a down payment towards something new, but there is no guarantee, and it may not. You should not count on using equity from a lease as a down payment towards something else.
Good truck leases are rare – What makes a lease attractive is the ability to get the vehicle you like or want. However, not all trucks have factory lease specials, and some advertised leases are for models that may not work for you.
Wear and tear charges – If you are considering getting a truck because you want to tow, haul and go off-roading, you must remember that these activities can be tough on a vehicle. Also, these activities can be costly if you are leasing. When the lease comes to an end, and you return the truck, it will be inspected for wear and tear. The lender wants it in good shape so it can be leased again or sold. If the truck has excess bumps and bruises, you will have to pay wear and tear charges. They can range from hundreds to thousands of dollars, depending on the extent of damage, and rob you of all the money you have saved with leasing.
Closed-end leases usually have strict stipulations about wear and tear and might not allow for towing and off-road use.
Read more: Can You Lease a Car With Bad Credit?
Both purchasing and leasing have their benefits, but your decisions should be based on your needs, finances, and usage. Leasing a new truck may be the right idea if are doing light duty, want to keep your monthly payments low, and would like to get something fresh and new every few years. Check on eAutoLease.com to search for the type of truck that would best suit your personality and financial situation. With vehicles from virtually every manufacturer, you will find the truck you need.
