Car incentives, the proposal for refinancing in the Budget Law arrives

Car incentives

Car incentives continue to be at the center of discussions in Parliament for inclusion in the next budget law. Among the amendments for the restoration of the eco-bonus, the one signed by the leader of the League and Senator Matteo Salvini does not go unnoticed.

In detail, the amendment proposal made by the Northern League senator provides for a fund of 150 million euros for cars with zero or low CO2 emissions. The proposal gives space to the different types of power supply, electric, plug-in, hybrid, petrol, Diesel, LPG and methane, both new and used.

It is therefore clear that the amendment refers to four types of vehicles, to which to allocate 25% of the sum each; we are therefore talking about 37.5 million euros. Specifically, € 37.5 million to be allocated to the purchase, including under finance leases, of electric and hybrid plug-in vehicles with emissions in the 0-60 grams of CO2 per kilometer range; € 37.5 million for the purchase, including under finance leases, of new factory category N1 commercial vehicles or factory new special category M1 vehicles, of which € 15 million intended exclusively for electric vehicles; 37.5 million euros allocated for cars with emissions in the 61-135 grams of CO2 per kilometer range, and a further 37.5 million euros for used cars with environmental class at least Euro 6, list price not exceeding 25,000 euros and emissions of 0-160 grams of CO2 per kilometer, with the scrapping of a vehicle registered before 1 January 2011.

The promise made by Minister Giancarlo Giorgetti could therefore be kept, the same one who in recent days had referred to a possible refinancing of incentives. The Minister of Economic Development, during the question time in the Chamber, replied to the question of the deputy of the M5S Luca Sut, who asked for explanations relating to the government's position on the measures to be allocated to the purchase of a new car. Response arrived after associations such as ANFIA, ANIASA, ASSOFOND, FEDERAUTO, MOTUS-E, UCIMU and UNRAE reiterated the absence of measures dedicated to the ecological transition in the Budget Law.

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Best Pickup Lease Deals for December 2021

Even though it barely made the Top 10 Best Lease Deals for Pickups in December, at No. 10, the 2022 Ford F-150 is notable for its presence on the list at all.

With one month to go in 2021, the Ford F-150 is a shoo-in to make it 45 years in a row as the best-selling truck in the U.S. market. For much of that time, it’s been the best-selling vehicle, car or truck. What’s more, the 2022 is an all-new, redesigned model.

But the Ford pickup did stumble a bit this year — the Dodge Ram pickup and the Chevy Silverado briefly outsold it in the second quarter. That was probably more for availability problems, than for any lack of demand. Anyway, even the No. 1 best-seller gets a Best Lease Deal this month, to finish the year.

Meanwhile, it’s a truism in the auto industry that pickup buyers quote-unquote “don’t lease.” It’s true that pickup buyers are more prone to buy their trucks rather than lease them. That’s partly a regional, cultural thing and partly practical.

Cultural, since leasing is more of a bi-coastal, luxury-brand phenomenon, and that’s not the typical footprint for pickup buyers. Practical, because a lot of pickup owners drive a lot of miles and put dents and dings in their trucks, especially if they’re put to commercial use. That can incur high penalties at lease turn-in time.

However, there are plenty of pickup owners who never tear across the desert, carry a load of pipes from Point A to Point B, or drop a pile of bricks in the back, like you see in commercials. So, plenty of pickup owners lease their trucks, and even a small percent of leases in a big overall sales number is still a lot of leases. 

According to Experian Automotive, the Chevy Silverado 1500, the Toyota Tacoma, and the Ford F-150 are among the Top 10 leased vehicles in the U.S. market, in terms of unit volume. That’s for the third quarter, the latest quarter for which detailed results are available from Experian.

Here’s the list of Top 10 Best Lease Deals for Pickups, for December: 

1. 2022 Toyota TacomaToyota Tacoma. ToyotaAverage Price:

$36,323.33 average suggested retail

$340.63 average best monthly lease payment (non-captive) 

Why We Picked It: 

The Toyota Tacoma was the best-ranked mid-size pickup in the recent J.D. Power 2022 U.S. ALG Residual Value Awards, based on its estimated value retention three years from now. Market Scan also lists the 2021 Toyota Tacoma among its Best Lease Deals for December, rated just about equally with the 2022 model. The 2021 has an average suggested retail price of $35,835.61, and an average best monthly lease payment of $338.73. Click here to read our overview of the Toyota Tacoma.

Pros:

The Toyota Tacoma outsells any two of its three biggest-selling competitors combined. They are the Nissan Frontier, the Chevy Colorado, and the Ford Ranger.

Maintenance. No extra charge for ToyotaCare scheduled maintenance, 2 years/25,000 miles.

New special editions for the 2021 model year include the off-highway oriented 2021 Toyota Tacoma Trail special edition.

Cons:

Lack of inventory could be a problem. Toyota reports Tacoma sales were down 24% in November. Year to date, Tacoma sales were up 12%, which suggests lack of demand isn’t the issue.

Compared with the 2022 model, the 2021 model misses out on new, off-highway trim and equipment, for the 2022 Tacoma TRD Pro, and an enhanced version of the Tacoma Trail Edition.

The down side of good off-highway cred is that the on-road ride is a little rough.

2. 2022 Honda RidgelineHonda Ridgeline. HondaAverage Price:

$42,200 average suggested retail

$474.92 average monthly lease price (non-captive)

Why We Picked It: 

Judging by December sales numbers, availability could be an advantage for the Honda Ridgeline. Its December sales were up 29% vs. a year ago, while sales were down for most competitors, Motor Intelligence said. Market Scan rates both the 2022 and the 2021 Honda Ridgeline among its Best Lease Deals for December. The 2021 has an average suggested retail price of $41,750, and an average best monthly lease payment of $488.22. Click here to read a review of the 2021 Honda Ridgeline and a comparison review versus the compact Hyundai Santa Cruz.  

Pros:

The 2021 Honda Ridgeline got a significant facelift, which carries over to the 2022 model. Improvements include a roomier interior and spaces to stow things.

On the exterior, there’s a new, lockable “in-bed trunk” in the pickup bed.

The standard engine is a good one, a 3.5-liter V-6, with a nine-speed automatic transmission.

Cons:

No other engine upgrade available.

It’s optimized for on-road, which after all is where just about all drivers spend most of their time, but its off-highway capability is not a big strength.

Ditto for heavy towing (it hauls 5,000 pounds) 

3. 2022 Chevrolet Silverado 3500 HD Chevrolet Silverado. ChevroletAverage Price:

$48,349.55 average suggested retail

$543.28 average best monthly lease payment (non-captive) 

Why We Picked It:

Towing is a good reason to buy the heavy-duty 2022 Chevy Silverado 3500 HD. Market Scan also listed another Silverado variant among its Best Lease Deals for the month, the (relatively) light-duty 2021 Chevy Silverado 1500, at $44,727.51 average suggested retail, $523.91 average best monthly lease payment. 

Pros:

Features to facilitate towing include improved rear-facing camera views and a warning while backing with a trailer, if a “jackknife” situation develops.

Some convenience and safety features, which were optional or unavailable on less-expensive models, are made standard.

A multi-use, Multi-Flex tailgate became available starting with some 2021 models. It can be folded and secured several different ways, to create a step up to the load bed, or lowered to create a flat extension to the bed, to support extra-long loads.

Cons:

Availability could be a problem. Total Chevy Silverado sales were down 25% in November compared with the year-ago month, according to Motor Intelligence. Still, that’s an improvement over September, when sales were down 44%.

The Multi-Flex tailgate is optional, at $595 by itself or it can be ordered as part of a package of options, according to chevy.com. 

In most configurations, the interior feels like a work truck, which is fine if it’s a work truck.

4. 2022 GMC Sierra 3500 HD GMC Sierra. GMCAverage Price:

$51,128.33 average suggested retail

$581.95   WAS 558 average best monthly lease payment (non-captive)

Why We Picked It

The 2022 GMC Sierra 3500 HD is the sibling to the 2022 Chevrolet Silverado 3500, also from General Motors. Market Scan’s choices for Best Lease Deals for December also include two other versions of the GMC Sierra: the 2021 GMC Sierra 3500 HD, and the 2022 GMC Sierra 2500 HD. All three are listed here together to save space. Click here to read our review of the GMC Sierra. 

Pros:

Considering it’s positioned as the flashier sibling to the Chevy Silverado, the GMC Sierra isn’t that much more expensive, based on the average sticker price as equipped, and the average monthly lease payment.

The GMC Sierra isn’t exactly rare, but the Chevy Silverado outsells it more than 2-to-1, so you’re less likely to see yourself coming and going in the GMC.

Features aimed at making towing safer and easier, like cameras with rear and side views

Cons: 

Availability could be a problem. November sales were down 17% vs. a year ago, according to Motor Intelligence. That’s for all versions of the GMC Sierra combined.

Starting price for the Denali version is a stiff $65,500 not counting destination charge, tax, title, license, dealer fees and any additional optional equipment. Yet GMC says more than half of GMC Sierra HD buyers choose Denali, so those customers don’t seem to be deterred.

Many desirable features are optional, including some high-tech safety and convenience features.

5. 2021 Jeep Gladiator Jeep Gladiator. Bill HowardAverage Price:

$43,883.81 average suggested retail

$506.93 best average monthly lease price (non-captive)

Why We Picked It: 

The Jeep Gladiator debuted in 2019, for the 2020 model year. It’s Jeep’s first pickup since 1993, and it’s closely related to the four-door Jeep Wrangler. Since it has a pickup bed, the Jeep Gladiator can accommodate people who want to haul both people and stuff, on- or off-highway. Click here to see our review of the Jeep Gladiator.   

Pros:

In November, Jeep introduced Jeep Graphics Studio, a web site that allows Jeep Gladiator and Jeep Wrangler owners to purchase customized interior and exterior graphic decals, with patterns like woodgrain, or topographic maps.

Even without the add-ons, Cool features include a fold-down windshield, intended for use in low-speed, off-highway driving.

Jeep also recently made available ($95) an extra-strength windshield made of Corning Gorilla Glass. 

Cons:

Consumer Reports rated the Jeep Gladiator as below industry average in its recent Annual Auto Reliability study, an estimate of future reliability, based on the track record of recent model years.

Availability could be a problem. November sales were down 11%, according to Motor Intelligence. Still, that was less of a drop than most competing models.

On-road ride and handling aren’t great, which is maybe to be expected in such a rugged package.

6. 2021 Toyota Tundra 4WDToyota Tundra. ToyotaAverage Price:

$46,178.64 average suggested retail

$532.08 average best monthly lease payment (non-captive) 

Why We Picked It:

It’s a good time to get a Best Lease Deal, if you can find a 2021 in stock, because production of a totally redesigned Toyota Tundra began in December, in the Toyota factory in San Antonio, Texas. Dealerships start getting the new version by the end of December. Click here to read our review of the Toyota Tundra.

Pros:

Critics of the gigantic-grille look may prefer the styling of the 2021 model, since the front end of the redesigned 2022 model is just about all grille.

No extra charge for ToyotaCare scheduled maintenance, 2 years/25,000 miles

Optional trim and equipment include the blacked-out Nightshade package, or the off-highway Trail package.

Cons: 

FOMO. The 2022 model gets new styling, new engine, new suspension, new infotainment, basically new everything. 

It might be hard to find the 2021 Toyota Tundra you want. In November, before the new 2022 Toyota Tundra started coming off the assembly line, sales were down 68% vs. November 2020, according to Motor Intelligence. 

Interior features and comfort are a little dated, vs. newer competition.

7. 2021 Ford RangerFord Ranger. FordAverage Price:

$33,062.50 average suggested retail; 

$380.92 average best monthly lease payment (non-captive)

Why We Picked It: 

Ford Ranger availability may have improved some. In November, sales were down 12% vs. a year ago, according to Motor Intelligence. But that’s an improvement, since in the third quarter, Ford Ranger sales were down 49% vs. a year ago. Year to date after 11 months, sales were down just 3.5%, Motor Intelligence said. Click here to read our review of the Ford Ranger.

Pros:

Ford is cultivating more of an off-highway look and ability for the Ford Ranger, with options like the Tremor off-road package for 2021, which includes bigger wheels and all-terrain tires, underbody skid plates, and a modified, heavy-duty off-road suspension.

Driver-assist technologies, like Blind Spot Information System with Cross-Traffic Alert and Trailer Coverage, Automatic Emergency Braking

Ranger STX Special Edition is another optional package for the 2021 model year. It comes with black-painted wheels with machined edges, and an 8-inch center touch screen with Ford’s Sync3 system with apple CarPlay, Android Auto, and more.

Cons:

The Ford Ranger is more of a so-called “lifestyle” pickup, as opposed to the full-size Ford F-150, which is more likely to be seen on job sites.

Ford dropped the Ford Ranger in 2011, in favor of bigger, more profitable trucks, and reintroduced it in 2019. But a lot more customers still gravitate to bigger pickups, like the Ford F-150.

Other customers gravitate to the slight smaller Ford Maverick, the Forbes Wheels Car of the Year for 2022. 

8. 2021 GMC Canyon GMC Canyon. GMCAverage Price:

$37,666.43 average suggested retail

$432.99 average best monthly lease payment (captive) 

Why We Picked It

The mid-size GMC Canyon and the Chevy Colorado (see below) are siblings, from General Motors. Market Scan also includes the 2022 GMC Canyon among its Top 10 Best Lease Deals for pickups this month. The two model years are rated just about exactly equal, based on monthly payment vs. sticker price. Trim and equipment are very similar between the two model years. Click here to read our review of the GMC Canyon.

Pros:

Updated exterior styling and interior features, starting with the 2021 model year.

Option packages include the new-for-2021 AT4 Off-Road Performance Edition, and the 2022 model year gets a new, blacked-out trim and equipment package, the Denali Black Edition.

Choice of engines — Standard engine is a 2.5-liter, four-cylinder; optional 3.6-liter V-6, or a 2.8-liter turbodiesel.

Cons: 

Average suggested retail higher than the Chevy Colorado by almost $3,500, according to Market Scan. 

Some driver-assist features are unavailable or optional on cheaper versions.

Overall, not that “premium,” for what’s supposed to be a premium brand compared with Chevy.

9. 2021 Chevrolet Colorado Chevrolet Colorado. ChevroletAverage Price: 

$34,206.11 average suggested retail

$394.51 average best monthly lease payment (captive) 

Why We Picked It: 

The 2021 Chevrolet Colorado is affordable, considering the average new-vehicle transaction price is well above $40,000 nowadays. It’s also cheaper than its slightly more upscale sibling, the GMC Canyon, also from GM. Click here to read our review of the Chevrolet Colorado.

Pros:

A 2021 facelift includes a new grille and front-end exterior styling.

Can trailer up to 7,700 lbs. (with optional turbodiesel), which is a lot for a mid-size truck.

Affordable

Cons:

All versions get a rear vision camera, but upgraded high-definition view is optional on the less-expensive versions. Ditto for certain driver-assistance features.

The 2022 model year gets a new, optional Trail Boss package, so that’s a downside for the 2021.

Raised, off-road versions with big wheels and tires can be hard to climb in and out of. 

10. 2022 Ford F-150Ford F-150. FordAverage Price: 

$50,997.50 average suggested retail

$604.48 average best monthly lease payment (captive) 

Why We Picked It: 

The Ford F-150 is the king of the hill in terms of best-sellers — it’s the best-selling truck in the U.S. market for 44 straight years and counting, and a shoo-in to make it 45 years. With that kind of ready-made demand, it doesn’t often show up on anybody’s list of best incentives, especially not Best Least Deals. Nevertheless, here’s a chance to get a lease deal on the best-selling truck. Click here to read our review of the Ford F-150.

Pros:

The new Ford F-150 is totally redesigned. Ford is leaning into offering features aimed at customers who use their trucks for work, like an option that powers and-or recharges power tools.

The new truck can accept over-the-air software updates. That eliminates a major source of trips to the dealership, since the truck doesn’t need to be physically plugged in, to get most updates.  

Cool features also include Active Drive Assist hands-free driving on divided highways.

Cons:

Even with a Best Lease Deal, it’s still pretty expensive, but that’s the way of the world for full-size trucks.

On-road ride quality is still on the truck-y side, not as refined as some competitors.

In testing, some reviewers found the turbocharged EcoBoost V-6 engine didn’t quite hit its EPA-estimated mileage rating.

Methodology:

Market Scan Information Systems Inc., Camarillo, Calif., identifies Best Lease Deals based on constantly scanning actual offers in the market, and comparing the best average monthly lease payment it can find, vs. an average suggested retail price for that model. Market Scan’s monthly payment is all-inclusive, including options, taxes and dealer fees. Therefore, it may not be as low as special lease deals advertised on dealer and manufacturer web sites, which typically don’t include taxes or fees, and may be for a stripped-down model that lacks popular options. All of those factors would serve to raise the real-world monthly payment. Market Scan also assumes: a 36-month lease term; a customer cash contribution of 5% of suggested retail; and a prime-rated credit score of 720. Deals may vary by region, and subject to change without notice.

FAQSince new vehicles are in short supply, what happens if a lease deal includes incentives that expire before the dealer can deliver the vehicle? 

That’s a pretty likely scenario, depending on when you order, and how long the delay is. Incentives usually change at the beginning of every month, and usually require the customer to take delivery from dealer stock, by the end of the month. This issue is something the customer definitely needs to work out via the dealer, before ordering a car for later delivery. Ford Motor Co., for instance, says on its web site that if the current incentives expire, the customer who orders a vehicle for future delivery can choose whichever is the better deal, the current incentive or the new one. “Ordering customers will be eligible for qualifying incentives at the time of order placement or qualifying incentives at the time of final delivery, whichever is preferred,” according to a Ford.com FAQ.

How much cheaper is it to lease vs. getting a loan?

On average, usually around $100 per month, or about $3,600, for a 36-month lease. Leasing also usually requires a smaller down payment, which in leasing is called the capital cost reduction. In the third quarter, the average monthly lease payment for the Top 10 highest-volume leased vehicles was $109 lower than the average monthly loan payment, according to Experian Automotive. 

There’s no free lunch, so how does that work, again?

In leasing, instead of borrowing the entire amount, as in a loan, the lease customer in effect only borrows the difference between the upfront cost at delivery, minus the residual value. The residual value is based on an estimate of how much the vehicle will be worth at the end of the lease, usually in 36 months. If your truck cost $50,000 and the residual value is $26,000, you’re borrowing $24,000 for three years. In return for lower monthly payments, the tradeoff for the lease customer is, unlike a loan, the leasing company keeps the title. The lease customer doesn’t have a trade-in at the end of the lease, to put towards their next purchase (although, it may be worth negotiating around that, if the actual resale value is much higher than the residual value). See our story, How To Cash In On The High Value Of Your Leased Car. 

This article, Best Pickup Lease Deals for December 2021, originally appeared on Forbes Advisor.