Rising Prices Make Chevy Truck Leases More Attractive
Chevy truck leases have doubled in the last five years as technology and costs continue to advance at a rapid pace.
We’ve always been told that buying a new vehicle is better than leasing one. After all, it’s a matter of simple economics, right? When you buy a new Chevy truck, for example, you pay it off and then you own it. With a lease, you make payments over a certain time period, but then you turn it in. And there’s nothing to show for the money you spent. Simple, right? Well, maybe not.
The popularity of leasing has skyrocketed in recent years for a couple of reasons. For one, automotive technology is advancing at an incredible pace. Secondly, so are new truck prices. A lot of folks simply can’t afford a $600 to $700 monthly payment, but they still want or need a full-size truck. And leasing quite simply presents a more affordable alternative to buying.
According to Edmunds, lease payments on a new Chevy truck are, on average, 30 percent less than finance payments. Leases typically require less money up front as well. And you don’t have to worry about repair costs once the warranty runs out, because by then, you will have turned the truck in. When the lease is up, you can either choose to keep the truck and pay it off or lease a new one.
Edmunds’ research found that no matter which Chevy truck you choose, your payments will be cheaper if you lease. The average finance payment on a new Colorado runs $525, versus $368 for a lease. The same goes for the Silverado 1500, which carries an average lease price of $404, which is 37% below the average finance payment of $645.
Those huge savings are a major reason why truck leases have doubled over the last five years. But there are caveats, of course. You won’t be able to thrash your truck without having to worry about excess wear and tear charges. You’re restricted to mileage limits, and exceeding them can cost you big bucks at the end of a lease. And unlike a purchase, you won’t be able to keep driving the truck, payment free, once it’s paid off.
But if you intend to purchase a new truck every couple of years and want to stay current on technology without worrying about repair and maintenance costs, leasing provides an enticing alternative.
