Published on Friday 01 August 2014 in Pickup Truck Leasing
Is it better to buy or lease a pickup truck?
Deciding whether you should buy or lease a pickup truck can be a challenging process. Both options have their pros and cons, so it is essential that you weigh these up in order to assess which is more suited to your business requirements and lifestyle. To help you make this decision, we have put together a list of pros and cons for buying and leasing a pickup truck:
Pros of Leasing
- Affordable: As you pay for leasing through monthly payments, you have more breathing space in terms of your budget. Your budget for leasing will most likely be larger than your purchase price range, so driving away in a new model of your perfect pickup truck is more affordable.
- Many finance options: Leasing offers a range of finance options that have been designed around your needs. We offer three finance options that cover enough choices to fit customers' different business needs and lifestyles. So whether having the vehicle for a fixed period or eventually owning the vehicle is important to you, we can meet your needs.
- Less upfront costs: At Pickup Trucks Direct, we ask for a deposit that's usually equivalent to between three and six monthly payments.
- Fixed monthly payments: Our contract hire finance option guarantees your monthly cost will be fixed throughout your leasing contract.
- VAT: If you're VAT registered you can reclaim up to 100% of the VAT.
- Tax efficient: Our monthly payments can be offset against taxable profits.
Cons of Leasing
- Ownership: You do not own the vehicle immediately.
- Mileage: Before leasing a pickup truck you will need to predict your mileage. If you have a Contract Hire agreement and exceed your mileage predictions then you will have to pay an excess rate. If you overestimate then your lease costs will be uneconomic for you.
- Insurance: In order to lease you have to have fully comprehensive insurance.
Pros of Buying
- Ownership: You get to drive away in a vehicle that you can call your own.
- Mileage: Unlike leasing, when you buy a pickup truck you won't have a mileage limit.
- Customising: Owning the vehicle means you can customise it how you like.
Cons of Buying
- Depreciation: Expect a loss of over half the initial value after three years of ownership due to depreciation.
- Large upfront payment: Buying a vehicle means having to pay the full amount for the vehicle upfront.
There are certainly a number of things to consider and it all depends on your personal situation and preferences. If you think leasing is the right route for you, or if you want more details about what we offer, contact us today!