What’s The Best Time To Lease A Car?
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Over the past decade, the popularity of car leasing has skyrocketed. As the world continues to deal with the global COVID-19 pandemic, the global car leasing market is expected to grow by 15% between 2021-2026.
If you’re looking to lease a vehicle, one of the most important things to remember to maximize savings is timing. Car leasing is a vastly different experience than buying, but when it comes to snagging timely deals, there are some similarities.
So you’re probably asking, what’s the best time to lease a car?
Just like with car purchases, planning helps you take advantage of new model changes, yearly sales, and seasonal deals. Today, we’ve created a quick guide about what’s the best time to lease a car, plus a few tips to maximize your lease.
Best Timing For A Car Lease
The best times for leasing a car can vary.
In general, you’ll want to strike a deal while business is slow, which is usually during a certain time of the year or when there’s a decline in popularity of a particular model. Additionally, be on the lookout for special deals and offers given by dealerships during major model refreshes or the end of the year.
BE CERTAIN YOU’RE GETTING THE BEST DEAL
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Shortly After A New Car Model Is Introduced
Between July and October, car manufacturers typically introduce new models to the market. This reasoning comes down to the car’s residual value.
Residual value refers to the estimated value of the car by the end of its lease term. Since all cars depreciate over time, dealers will calculate the residual value by subtracting the estimated depreciation from the vehicle’s current value. In this case, lower residual value equals higher lease payments.
Shortly after a major model refresh, prices for the previous models are expected to drop. Therefore, if you don’t mind getting last year’s version, you may score a good lease deal after the introduction of a new model - when a car’s residual value is at the highest.
Remember that you may miss out on some new features and upgrades from the latest model. However, these bells and whistles are rarely a deal-breaker for general consumers.
End Of Month Or Year
Most dealerships have a monthly sales target quota. Typically, car salespeople that hit their monthly milestones will receive a bonus. Therefore, it’s not surprising that dealers give discounts and special offers to meet their monthly quotas.
In other words, you may be able to negotiate a better price for a car lease during the last 2-3 days of the month.
Moreover, if you’re more flexible with your lease, waiting until before the end of the year is even better. On top of monthly quotas, dealers also have quarterly and annual sales goals. If you walk into a dealership that’s shy of its quarterly or yearly sales goal, you could potentially score a great deal.
Try to visit multiple dealerships so you can expand your options and negotiation power.
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So you’re in the market for a used vehicle? We’ve gone ahead and prepped some essential questions to ask when buying a used car.
Holiday Sales
If people ask the question: “what’s the best time to lease a car?” Most people would likely answer: during the holidays.
Just like with pretty much every business, car dealers also offer lease promotions during the holidays - this means steep discounts for your lease. Time your leasing inquiries during the following holidays:
- Memorial Day
- 4th of July
- Labor Day
- Thanksgiving
- Black Friday / Cyber Monday
- Christmas
Getting your car lease around these specific holidays may result in great discounts. However, when going for these types of deals, make sure to read the fine print before signing the contract. Many of these offers may come with limitations such as excessive wear and tear charges, limited to specific trim options only, or non-negotiable mileage restrictions.
Tips For Leasing A Car Like A Pro
At this point, you should have a good idea about what’s the best time to lease a car. However, there’s more to car leases than just timing.
In theory, a car lease is a fairly simple transaction. But in practice, navigating your way into a lease deal can be confusing, especially for beginners. Below are some great tips to help you score great deals on your next car lease.
Educate Yourself About The Process Of Car Leasing
One of the key advantages that you have for negotiating a great price is the ability to prepare and educate yourself about the process of auto leasing.
One thing that you should educate yourself about is the terminology of leasing. It’s going to be simple for the car dealership to get you into a bad deal if you don’t understand what they’re talking about. Also, it’s worth noting that the terms used in leasing are way different than when you buy a car.
Cars.com has created an in-depth glossary of car leasing terms that you should check out.
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Research Prices And Deals
Before you head out to a car dealer, research the prices for the vehicles you’re interested in and find any available deals. Be on the lookout for promotions and incentives because they make a good starting point for your negotiations.
Ensure that you know the typical price point for your preferred model and make. Even though you’re not purchasing a new car, you can still negotiate for your lease just the same. If you can lower the price, you may also end up paying less for depreciation during the lease’s life. This may mean lower monthly premiums as well.
Shop At Multiple Dealerships
Just because a deal looks good, it doesn’t mean that you should finalize it right away. Your ability to shop around to find the best deals is a great advantage for any lease negotiation. Having multiple options empower you to compare prices, deals, and terms on the car you want to lease.
By shopping around for the best lease deals, you have the leverage to make dealers compete for your business. You just have to be firm and ready to walk away if you’re not thrilled by a deal.
Look Past The Monthly Payment
Try not to fixate too much on the monthly payment because, believe it or not; it’s not the best way to save money on a lease.
Instead, you should look into the total cost of the lease, including your initial payment plus taxes and fees. By considering the total cost of the lease, you can compare prices and avoid costly add-ons.
Get a Curated List of the Best Used Cars Near You
The CoPilot car shopping app is the easiest way to buy a car. Tell us what you’re looking for and we’ll search the inventories of every dealership in your area to make you a personalized list of the best car listings in your area.
Only looking for newer models? CoPilot Compare is the search engine for nearly-new cars. Only see cars five years or newer with low mileage — CoPilot Compare is the best way to find off-lease, early trade-in, and CPO cars.
The best part? CoPilot is built using the same technology that dealerships use to buy and sell their inventories, so we have more info on each vehicle than competitors. CoPilot doesn’t work with dealerships, so there are no sponsored posts or other shady practices — just the most info on the best cars. Check out our About Us page to see how CoPilot works.
