The 2014 Chevy Silverado’s Biggest Edge Over Ford Motor Company (F)’s F-150

Historically, GM hasn’t had many customers interested in leases. Leases make up less than 10% of GM’s sales of the Silverado and the GMC Sierra, according to a recent article in Automotive News. With the Sierra also having seen a big jump in residual value for its 2014 model year, though, the potential for greater use of leases could enable interested buyers to stretch their budgets and grab up better-equipped versions of the Silverado and Sierra.

Deciding on a lease
Of course, your own personal situation will determine whether it makes sense for you to lease a Silverado or other vehicle. In making your decision, you’ll want to consider several things. Leases impose mileage limits, and if you expect to drive more than those limits cover, you’ll end up paying quite a bit more in overage fees. Also, fees for excessive wear and tear can add quite a bit to your total cost, and hefty early termination fees are required if you change your mind about the vehicle and want to get out of your lease before it expires.

But for investors in GM, the good news is that more attractive lease options for its premier pickup lines could help drive more customers into showrooms, letting the stock continue its recent strong performance. As competition gets ever fiercer in the pickup market, having the advantage of strong resale value will give GM more flexibility in giving potential customers every chance possible to drive away in the Chevy Silverado they truly want.

The article The 2014 Chevy Silverado’s Biggest Edge Over Ford’s F-150 originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.