If you are in the market for a 2018 Ford F-250, leasing is an excellent option. Leasing has been trending upwards recently with over 30% of all new vehicle sales being leases. Typically, trucks are not leased as much as other vehicles, but the number of truck leases has increased dramatically in the last five years. The pros and cons below should help you decide if leasing a Ford F-250 is the best option for you.
Cheaper Payments- As you probably know, new trucks are not cheap. For example, the lowest priced Ford F-150 is approximately $12,000 more than the brands cheapest car, the Fiesta. The difference is even more for the F-250. A regular cab base 2018 Ford F-250 can easily exceed $33,000. The average lease payment for a truck is about $200 cheaper than financing.
Depreciation- Typically, when you own a vehicle, you are concerned about resale value. Currently, trucks are holding their value well, but if the gas prices spike, trucks become harder to sell. A dramatic drop in the value of a leased truck is the dealer’s or bank’s problem, not yours. If you complete the terms of the lease, you have the option to end it.
Latest Model- Most people keep their vehicles for nearly seven years, but not all drivers desire to keep a vehicle that long. If you lease a truck, you have the option of getting a newer model after your contract is fulfilled. This is not as easy if you finance a truck because you are locked in until it is paid off. Also, leases are usually shorter than financing terms. You just have to make sure you don’t violate the mileage limits or other lease restrictions.
Option to Buy- Once your least is up, you have the option of returning the truck or purchasing it. The buyout value would be based on the residual value that was determined at the start of the lease. It is important to remember that buying a truck at the end of a lease is not ideal because you would end up paying more than if you had purchased it upfront.
Ownership- In most cases, once you decide to lease, you will probably never own the truck. The idea of a low payment among other benefits may be desirable, but at the end of the lease, you have to return the truck and start over. If you had financed, you could have had the truck almost paid off. Owning a truck is nice because it gives you a break from monthly payments. These savings can be prioritized elsewhere. Once you start leasing, you get stuck in the cycle of going from lease to lease. Having a new vehicle also keeps your insurance premiums and registration fees high.
New Down Payments- You may be thrilled at the thought of getting a new truck every few years, but in most cases, you will have to make a new down payment at the start of every new lease. Most truck lease startup costs can easily exceed $3,000. In rare cases, the truck may have gained some equity during the lease period that could be used towards the down payment, but this is not a guarantee.
Excessive Wear and Tear Fees- You have to be very cautious with certain activities when leasing a truck such as towing, hauling or off-roading. This can be difficult because most people buy trucks for these reasons. Unfortunately, these activities can quickly increase the wear and tear on the truck and cost you possibly thousands in fees. This is because once the truck is returned the bank wants it to be in great shape so it can be resold for maximum profit. To prevent certain damages, it would be ideal to purchase items such as all weather floor mats, a bed liner, and a dash cover.
Hard to Find Truck Leases- The primary selling point for leasing a truck is a low monthly payment. Unfortunately, you may have a hard time finding the truck you want on a lease special. This is partly due to the fact that cars still are more popular to lease than trucks. There are also a larger inventory and selection of cars to offer for leases.
When deciding to lease a truck, you have to carefully consider what you primarily will use it for. If you will be doing a lot of things that will increase the wear and tear, it is probably best to purchase versus lease. You have to stay within the guidelines of the lease to enjoy the benefits of it. Otherwise, you may pay more money in the long run compared to ownership.