One of the least understood options when purchasing a new car is leasing. A large portion of the population sees leasing as simply “renting a car” and therefore a bad deal. Yet truck leasing is on the rise, and there are some good reasons for this surge in popularity. Here’s what you need to know.
UPDATE: This year, Ford is gearing up to release an all-new truck at the 2014 Detroit Auto Show (Tim will be there on January 13 and 14). With this in mind, we thought it would be fun to rehash this article about trade in value.
One of the benefits of buying a new Tundra is that it is consistently at the top of the industry in terms of resale value. All things being equal, a Tundra holds it’s value as well as or better than an F150, Ram, or Silverado/Sierra – at least according to studies released by KBB.com, Edmunds.com, AOL autos, and many others over the last few years. As a result of all this positive press, many Tundra owners expect top dollar for their trucks…but how does a Tundra owner figure out what their truck is really worth?
In 2009, I wrote a post titled “Why Do People Buy Trucks” that explained the most common reasons consumers gave for buying a pickup. This data came from Ford market research:
As you can see, towing and work dominate the results, with about 1 in 6 buyers buying because of “image.”
While I believe these numbers understate the “image” market (a lot of the “towing” people talk about is infrequent and well within the capabilities of smaller vehicles), it’s the best data we have about the purpose people have in mind when they buy a truck.
However, this data doesn’t shed much light on how people decide to buy a specific make and model. Fortunately, recent data published by JD Power paints a very interesting picture.
According to AAA’s Daily Fuel Gauge Report website, the average gallon of regular gas costs about $3.59 today. According to a recent study by Experian Automotive, a $1 increase in the cost of a gallon of gas would have minimal impact on consumer buying behavior.
if gas prices increased by $1, in an average month with 1 million unit sales, the Small-Car Economy segment volume would increase by 7,000 units. Conversely, the same price increase would cause the Full-Size Pickup Truck segment to lose [5000 sales]
That’s right – according to Experian, $4.60 per gallon gas would barely effect new truck sales. Does that sound right to you?
Extended warranties, love them or hate them, are always a consideration when buying a new Toyota Tundra. What things should you consider when buying one?