Deciding to buy or lease a pickup truck can be a challenging process. It’s important to weigh both options basing on your business requirements and lifestyle while focusing on both advantages to disadvantages of leasing or buying a pickup truck.
Pickups are uniquely big and strong, they carry heavy and large loads, they can be used to tow trailers on the highways and they run smooth or off-road trails.
Modern pickups come with some luxury features like leather seats, touch screen information systems, Wi-Fi hotspots, high-end audio systems, sunroof and much more. Pickups are easy to even modify and customize to your own appealing look.
Pickups have smaller engines with turbochargers that add extra power, start/stop system which saves on gas lost when in traffic due to too many stops, their body is made up of aluminum making them light, and some have a diesel engine which is conducive to the environment.
Leasing is where you do not own the vehicle and at the end of the lease period, you return it and pay any end of lease costs that are due to complete your obligations. Lease payments only cover the portion of the vehicle’s value that you use during the time you drive it.
When you buy a truck you pay all its full cost, finance charges and the sales tax required by your state. Here are some of the payments done at the beginning of a lease:
Here are some of the payments done at the beginning of a lease:
- Your first monthly payment
- Deposit to your final monthly payment
- Down payment
- License and registration fee
- Processing fee
- Freight and discharge
Here are some of the payments due at the end of the lease:
- The fee to excess mileage – you will pay a fee to every excess mileage depending on the lease terms and conditions. Basing on the number of miles per year should help you determine the type of lease best for you, either long-term or shorter lease.
- Termination fee – you will pay a fee if you terminate a truck lease early.
- Damage fee – excessive damage or wear to a truck at the end of the lease will be paid for. Consider installing a bed liner on the truck in case you will use it to haul items that could scratch or damage the truck.
Things to consider when leasing a vehicle:
- Payments required to obtain the vehicle
- Vehicle cost used to calculate the lease fee
- Lease end fee
- Charges for excess miles
- Mileage allowance
- Purchase Options for the truck
Some of the reasons why buying might be your option:
- Keeping the vehicle to avoid loan payments
- You do not mind paying repairs even when the warranty is exhausted.
- Having a credit issue
- Customizing the truck
- Need to trade it for another vehicle
Here are some of the reasons to which of the choices should be the best for you as to either lease or buy based on advantages and disadvantages.
|Advantages of leasing||Disadvantages of leasing||Advantages of buying||Disadvantages of buying|
|• Affording the truck on a budget|
• Less upfront cost between monthly payments
• A fixed monthly payment
• VAT advantages
• Tax-efficient in terms of profits
|• You don’t own the vehicle|
• Mileage limit
• Must have a fully comprehensive insurance
|• Truck ownership|
• No mileage limit
• Truck customization
|• Truck value depreciation after a few years|
• Large upfront payment
Weigh both options and choose the best one for your needs.