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How leasing helps increase sales

Every dealer offering lease options on various vehicles, such as luxury cars, SUVs, pickup trucks, or sedans, will work independently having set their own prices. A customer has to pay the initial security deposit for the vehicle with the help of financial companies or banks. The lease should also be approved by a financial company.

Most customers feel that getting a vehicle on a lease is a better option than the usual truck rental. The lease options are, however, available for limited vehicles, depending on various terms and conditions. Moreover, not every truck is available on lease and most of the vehicles are mainly available on a rental basis only.

According to experts, vehicles were not allowed on to be leased. Vehicles such as the Chevy Silverado, Toyota Tundra, GMC Sierra, Nissan Titan, and Ford F-150 were available on a rental basis only. Most of the manufacturers and dealers of these vehicles never offered lease options on Chevy trucks. However, today, this has changed and now the vehicles are being made available on the basis of a lease. Many more vehicle companies and truck dealers are making the vehicles available on lease and it has become common as compared to other truck rental option. According to the market survey, about 15 percent of the retail duty pickup sales are in the lease form. Every year, the percentage of sales based on leases is increasing. In most cases for specific vehicles such as cars and trucks, the lease can be available even without a security deposit. According to a recent study, the increase in the pickup leasing will not affect the residual pricing of the vehicles. In fact, the residual pricing is increasing as well.

For lenders, the procedure of lending mainly depends on the residual value of the vehicle. The leasing can be affected mainly due to a recession which can affect financial companies severely. It may lead to certain stressful conditions and the financial companies may pull back the leasing option and only offer the truck rental option till the market becomes normal.

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