When is the Best Time to Buy a Leased Car?
Just like any market, there are good times to lease a car compared to others. It is important to see what times would be the most beneficial for your car leasing process!
Understanding the Best Times to Lease a Car
There are many times throughout the year that are better to lease a car. However, there are some specific times that you should be on the lookout for.
End of Month/Year
Just how companies have monthly quotas to reach, car dealerships are no different. When dealerships reach a set number every month that usually means they receive a bonus. If they aren’t meeting their goal, then at the end of the month they may roll out some incentives to increase their chance of reaching their numbers. You also may have a better chance to negotiate prices during these end of month periods. The same rule of thumb applies to yearly goals as well!
Any holiday like 4th of July, Memorial Day, Christmas, Labor Day, etc., all tend to have deals! You will likely find more promotions and incentives when looking for a car. However, due to the fact that dealers may feel obligated to have promotions during these time frames, their deals may not be as sweet as you’d think. Instead of a normal mileage limit, they may have a reduced amount that you are allowed to drive. You also may see restrictions on the kind of car. It may be a model you like but a specific color or body style that is not eligible for the promotion.
Changes to the Vehicle’s Model
You will be able to save money if you opt to get an older model car. If you are not opposed to leasing these models during a new model release, then you can save money during this time. These timeframes are usually between late summer and early fall. Another reason you may save more is because dealerships want to clear room for the new models, so on top of already reduced prices, you may get more incentives as well! You just need to be okay with not getting the newest technology available.
What Else to Know About Leasing a Car
This is not the choice for everyone, but if you are to lease a car then you want to make sure you understand a few aspects before making your final decision.
1- Can You Afford Your Leased Car?
A good rule of thumb to follow when buying or leasing a car is to have car expenses be no more than 15% of your income. That number should also include your gas, repairs, etc.
2- Do You Know Your Credit Score?
The better the credit score then the better the interest rate! You want to know what your credit card score is on the FICO scale. You can also contact the dealership to see if they have any credit requirements.
3- Is Leasing Right for You?
If you constantly want to get new cars, then this is a great option for you to consider. However, you need to remember that you won’t own the car at the end of the lease. Sometimes, you may have the option to buy the car but that is not available with every agreement. You also want to make sure that the mileage penalties and other fees will not hurt you in the long run.
4- Make Sure You Read the Fine Print
When you want to lease a car, you need to make sure you fully read and understand what you are getting yourself into. Before you go to the dealership, you should familiarize yourself with leasing language and terms. You can use websites like Investopedia to assist you in understanding leasing specific terms so that you can properly understand the agreement.