When Is the Best Time to Lease a Car? If you’re looking for a short answer, the best time to rent a car is during a discount promotion that you find after doing a lot of research. There are certain occasions when rental companies offer genuine discounts for various reasons. Maybe the dealer needs to increase turnover quickly or maybe they are getting pressure from manufacturers or discounts, benefits, or incentives from manufacturers and other stock market-sensitive organizations.
The best time to lease a car is shortly after a new model has been released, as this is when the value of the car after depreciation is highest. This means you’ll pay less in monthly payments for a vehicle over the course of a lease. However, with fixed monthly payments and the option to drive a new car every few years, there’s never a bad time to consider leasing a car. Depending on what you’re looking for, there may also be additional incentives at certain times.
After all, we know that when you have your mind set on a vehicle, you want to rent it for the lowest price possible, and there are a few different time-related factors that can help you achieve that.
Fast Answer:
The best time to lease a car is shortly after a new model is released, as this is when the value of the car after depreciation is highest. This means you will pay less in monthly payments for a vehicle over the course of a lease agreement.
When Is the Best Time to Lease a Car?
The best times to rent can vary. Typically, it may be when business is slow, either because it’s a certain time of year or because a particular car model is falling out of popularity. Dealers also offer special incentives at the end of the year or during model changes.
What is the Best Month to Lease a Car?
Generally, the best deal to lease a new car is right when it is released on the market. This is because the residual value of the car will be the highest at that time. The residual value of a car is the expected value of the car at the end of the rental period and its expected value will only increase as the months go by. Residual values listed on contracts are usually based on the Car Rental Guide’s Residual Percentage Guide. These numbers are updated every two months and every two months they tend to go down in value.
Most new car models are released between July and October, so this is the time of year when you are most likely to find a great deal. But there are other times throughout the year when you can find great deals.
Holiday weekends are known for offering excellent deals on new car leases. Some of the best days for these promotions include:
- Presidents’ Day Weekend
- Memorial Day Weekend
- Labor Day Weekend
- Thanksgiving
Another good time to lease is towards the end of the month, as dealerships work to meet their monthly sales quotas.
Read Also: Minimum Income Requirements For Leasing a Car
5 Best Times You Should Lease a Car
The best times to rent can vary. Typically, it may be when business is slow, either because it’s a certain time of year or because a particular car model is falling out of popularity. Dealers also offer special incentives at the end of the year or during model changes.
1. Major model changes
If you’re open to leasing last year’s model, you may find excellent deals when manufacturers introduce new models to the market. This typically happens in late summer or early fall, as dealerships offer incentives and rebates to clear out older inventory and make room for the latest arrivals.
Car models are often refreshed every four to six years with redesigns. While leasing last year’s model during a new model launch might mean missing out on upgrades or new features, these changes are often minor. If the updates aren’t essential to you, opting for the previous model year can be a cost-effective way to lease a new car.
2. End of the Month/Quarter
Car dealerships and salespeople have monthly and quarterly targets that they need to hit, and on which their bonuses depend. This means that sales associates looking to meet their quotas may be more motivated to offer a cheap deal around these times.
So by waiting till the end of a certain month, there’s a high chance that you could get lucky.
3. Holidays/Off Peak Times
In other words, times when business is quiet and everyone’s wallet is usually being spent on other things like food, nights out and social events. Times like Black Friday, Cyber Monday, three-day weekends, and especially Christmas.
At the end of the day, dealerships and funders need to meet targets, and these are the times when fewer people are interested in sorting out a new car lease, meaning that some leasing companies may be open to offering deals at discounted rates.
The end of December can be an especially good time, as it’s not only approaching the end of dealers’ monthly AND yearly quotas, but it’s also right in the middle of the biggest holiday of the year.
4. March and September: After the Release of a New Model
Although there’s nothing stopping car manufacturers from releasing new models at any time of the year, the vast majority are released either in March or September, making these months an ideal time to take out a lease deal on a brand new car at a low price.
That’s because they’ll then want to get the older models out the door so that they can stock the new ones in their showrooms. So if you’re someone who doesn’t mind getting behind the wheel of an older model and losing out on certain new upgrades or features, then there’s excellent deals to be had around this time.
Another point to note is that the registration numbers change at the start of these months as well. What this means is that any vehicles which might have been registered early before the first day of the month may have better offers, seeing as they have to be delivered as quickly as possible before they are classed as a used vehicle by the funders.
Bit of a double-edged sword though, because March and September may equally be bad times to swoop in on lease deals, as other people will be trying the same.
5. Weather/Seasonal Considerations
It’s not always about financial considerations, though. The ‘best’ time for a good deal can also be dependent on the type of car you’re after, and how that relates to the time of the year.
Say you want to lease a MINI convertible. You don’t want to do that in the middle of winter, so just before summer and spring would be the best times in this instance.
In the same way, it could be worth looking into a deal on a 4×4 or an SUV ahead of winter. That way, you can take full advantage of the all-weather features like all-wheel drive and weather-specific driving modes.
6. Black Friday and Cyber Monday Deals
Car leasing companies also participate in annual sales events like Black Friday and Cyber Monday, offering discounted prices on available stock. Just as with other retailers, these events can be an excellent opportunity to find reduced rates on lease cars. Be sure to shop around and compare deals to get the most value for your money.
Read More: Leasing a Car VS Buying a Car
How can I get the Best Deal While Leasing a Car?
When looking to get the best deal on your new leased car there are a number of steps you can take to give yourself an edge.
Maintain a Great Credit Score
Whether you’re planning to buy or lease a new car, having your finances in good shape is key to getting the best deal. The most important factor to focus on is improving your credit score. A good credit score can significantly impact the terms of your lease or financing, so it’s worth taking time to raise it before you start shopping.
So if you have a poor credit, then try to improve your credit score before leasing a car.
Negotiate Fees on Your Lease
Car dealers often add extra fees, and knowing which ones are negotiable can help you save money. Here are some fees that you might be able to negotiate:
Mileage allowance fees
Disposition fees
Purchase option fees
However, you will likely not be able to negotiate the acquisition fee, registration fees, or taxes. If you see any unfamiliar fees, always try to negotiate them to lower your overall costs.
Understand the Lease Terms
Leasing a car involves a lot of terminology, and understanding these terms can help you avoid getting a bad deal. Here are some key terms to know:
Acquisition Fee: Covers the costs of arranging the loan, such as obtaining your credit report and verifying your insurance.
Adjusted Capitalized Cost: The amount on which your lease payments are based. It’s the car’s cost minus any down payment, plus any fees.
Base Monthly Payment: This payment is based on the car’s depreciation over the lease period, with taxes and fees added on top.
Capitalized Cost: The car’s original price.
Disposition Fee: The cost of preparing the car for resale at the end of the lease. This covers cleaning, servicing, and preparing the vehicle to be sold as a certified pre-owned car.
Money Factor: This number determines the interest you’ll pay on your lease. You can estimate the interest rate by multiplying the money factor by 2400.
Residual Value: The anticipated value of the car at the end of the lease term.
Understanding these terms will help you better evaluate your lease deal and avoid being caught off guard by hidden costs.
What Credit Score Do You Need to Lease a Car?
In most cases, you’ll find it easier to rent a car if you have good credit, meaning a FICO® score of 670 or higher. A good or excellent credit score typically qualifies you for a lower money factor, which can lower your monthly rental payment.
Final Thoughts
Try shopping around to find the best possible lease deal for your circumstances. Leasing last year’s model during a major model change, waiting for more bargaining power at the end of a month or year, or shopping around during a holiday sale can all save you some money.
In addition to choosing the right time, be sure to Calculate the monthly payment range you’d be willing to pay ahead of time, check your credit, and read up on leasing jargon. You’ll likely feel more confident when you start shopping around, and that can help you make more informed decisions.
