Truck Buying Options: New or Used, Buy or Lease

New or Used

• Price – Used trucks are much more affordable than new trucks. If you’re short on money or don’t want to spend as much, a used truck is the way to go.
• Depreciation–New trucks lose about 11% of their value right when you drive them off of the lot. Most vehicles depreciate at the highest rates in the first few years, so if you buy a used truck, you can avoid that depreciation loss.
• History –There is no history with a new truck. You don’t have to worry about unknown issues or how the previous owner treated the vehicle. However, it is possible to avoid this worry when you get a certified pre owned truck or when the truck is thoroughly inspected.
• Maintenance–New trucks usually don’t require very much maintenance, but if they do, their warranty will probably cover it. Used vehicles rarely come with warranties and will need maintenance more often. Whether you buy new or used, you will eventually have to deal with maintenance expenses and time.
• Time – Used trucks typically take more time to find and purchase since you have to research for what you want while you could probably find the truck you want at a dealership the first time you go. However, spending time researching used trucks to find common problems and discover what you really want the truck to do can be very beneficial.
• Quality –Some people choose to buy used trucks because they see them as sturdier with the same level of quality and performance as new trucks. Each year, there are improves or updates made on trucks, but some see them as insignificant and not worth the extra money. If you buy used, you might be able to afford a higher quality model since it’s so much cheaper than a new truck.
• Technology and perks – New trucks come with new technology. Whenever you buy a new vehicle, there are typically perks at the dealership. Some of these include rebates, cash incentives, and discounted financing.

Buy or Lease

• Down payment – Buying a truck requires a down payment that is almost always more than leasing a vehicle. When you lease a truck, the down payment might not cost you anything. If it does, chances are it will still be a low number. If you don’t have much money to put towards the down payment, leasing is probably a safer option to avoid owing more on the truck than it is worth in the future.
• Monthly payments – Leases typically cost less per month. However, buying costs less overall. The question is “how much money do you have to spend or want to spend each month on a truck?” Sometimes you can get smaller monthly payments when you buy a truck, but then the insurance tends to accumulate.
• Time period – After your lease contract is up, you have gained nothing but the use of the truck. You have no equity in it, so you have to return it or buy or lease a different vehicle. When you pay off your truck loan, you now own the truck. That can be a pretty great feeling, and it is almost always cheaper than leasing. Building this equity is beneficial for future purchases.
• Mileage – When you lease, you have to think about how many miles you drive each year and be careful not to go over that number unless you don’t mind steep fees. The limit is typically between 12,000 and 15,000 miles per year. If you own the truck, you can go on as many road trips as you want.
• Time frame and purpose– If you’re a university student, maybe you just want a vehicle in that area for 4 years. Maybe you just started a renovation project, and you’ll be hauling supplies back and forth. Let’s say you just got this beauty of a boat but no vehicle to haul it. Each situation is different and could benefit from buying or leasing depending on whether your situation is temporary or more permanent. On another note, if you lease a truck for business, it’s possible to get tax breaks.
• Upgrades–The amount of time to pay off a bought truck varies, but a typical time frame is about 4 years. After those 4 years, you can trade-in or sell your truck whenever you want, but if you sell it, you have to figure that out yourself. Leases make it easy to upgrade to a new truck once their contract expires and they return their previous truck.
• Freedom – Buying a car will give you the freedom to customize it however you want and not worry about the occasional door ding. It also gives you the freedom to drive however many miles you want and to sell or trade-in the truck when you feel like it. Leasing gives you the freedom to pick a different vehicle after each contract is up and not worry about selling it themselves. However, there is a penalty for ending the lease early, so make sure you can commit to one truck for that amount of time.

Overall, there are many things that go into the choice between buying a new or used truck. You might purchase a new truck if you’re financially secure, you know that you will use the truck for many years, and you want all the bells and whistles. If you’re a new owner, aren’t financially secure, or don’t want to spend so much on a new truck, you might find more value out of a used truck.

The decision to buy or lease comes down to a few questions: how much money you have to spend on a down payment and each month, how long you plan to keep the vehicle, and what you plan to use the truck for.Hopefully this article will help you in making decisions when buying your next truck. 

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