As COVID-19 increasingly impacts personal spending in the U.S., a recent study indicates that the pandemic may not be deterring those looking to buy or lease a truck. Based on our analysis, aggressive manufacturer incentives potentially offer consumers looking to limit monthly expenses a way to save serious money.
According to Comscore, an analytics company, early March saw a 25% drop in shopping activity on 3rd party automotive websites like Kelley Blue Book and Edmunds. However, the firm notes that activity from full-size truck shoppers was an unusual exception, “likely buoyed by incentives and personal use needs.”
While many consumers are likely assessing what coronavirus means for buyers, our analysis finds that the latest offers heavily favor brands that build some of America’s bestselling trucks.
For example, the Ford F-150, Chevy Silverado 1500, and RAM 1500 are all currently eligible for 0% APR financing for 84 months plus deferred payments. We’re even seeing an increasing number of offers on heavy-duty pickups like the RAM 3500, which as of this past Saturday is now eligible for the same deal.
However, our analysis of Ford’s offer finds that the deal can only be applied toward 2019 models, while GM’s offer includes both the 2020 Silverado 1500 and GMC Sierra 1500. Here’s a closer look at what that means for someone buying a well-equipped Sierra Denali (Crew Cab, 4×4) with a price tag of $60,000.
Early last month, the best deal was 0% APR for 72 months plus a $500 bonus. That came out to $826/month with a cost of $59,500 before taxes & fees. Now, a 7-year loan at zero interest comes out to $60,000 at $714/month. That’s an advantage of over $110/month when you compare monthly payments.
According to dealer leasing bulletins, the 2020 Chevy Silverado 1500 Custom Crew Cab (V6, 4×2) can now be leased from as little as $331 for 39 months with $0 due at signing as part of a Sign & Drive deal when coming from another GM lease. That’s a nearly $38,000 truck that can be leased for less than a 2020 Chevy Sonic.
Just for reference, the Sonic LT Hatchback is listed at $329 for 39 months with $1,509 at signing, an effective cost of $368/month. That’s a stark difference in price considering the MSRP of the Silverado is nearly $18,000 more expensive. So is now the time to buy? That’s probably going to depend on your priorities.
0% offers have clearly resonated with buyers, and 84-month loans can be a great way to lower your payment. However, there are trade-offs like eligibility for rebates and potential negative equity. If leasing fits your driving habits, it could be a compelling alternative, with an attractive payment to boot.
As always, we recommend considering all your options before making a decision.
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