Leasing makes 'obscene' pickup prices respectable - Automotive News
He figures that a pickup with a $42,000 sticker price and a transaction price of $38,000 would cost a consumer at least $600 a month for 72 months if bought with a traditional finance contract. So he advertises that qualified buyers can lease a new $42,000 pickup for 36 or 39 months, often with no money down, for around $300 a month. Over the past two years, the share of his pickup business financed through leases has increased to half from not quite 20 percent. Low gasoline prices, strong residual values and subsidized leasing from manufacturers make it possible, he said. "Obviously the manufacturers are subsidizing and supporting it, because quite frankly, the MSRPs have become obscene," Weiss said of the manufacturer's suggested retail prices. Weiss holds Chevrolet, Chrysler, Dodge, Jeep and Ram franchises in rural New Hampshire. Leases pick up. Historically, retail customers almost never leased pickups, such as the Ram 1500, Chevy Silverado, Ford F-150, GMC Sierra, Toyota Tundra and Nissan Titan. That's because manufacturers and their captive finance arms almost never offered subsidized lease deals on them, say price experts and dealers. The uptick in pickup leases follows the uptick in pickup lease offers. Source: www.autonews.com
