When Is the Best Time to Lease a Car? Four Tips to Get the Best Deal

Timing your lease can definitely save you money. When you know the best times to lease and understand why, you can secure great deals – and avoid costly mistakes. To get the best deal, make sure you have a solid foundation of understanding how vehicle leasing works.

This guide identifies the best time to lease a car and covers tips on how to get the best deal on incentives, rebates, and discounts. Auto Bandit understands the importance of getting a good deal so we offer deals throughout the year. Year-round deals make it easier for you to lease a car at the right price.

When Is the Best Time to Lease a Car?

Most new models are introduced into the market between July and October. This may be a good time to lease in order to maximize your savings. However, another great time to lease is when the manufacturer offers special deals and incentives.

Specifically, there are five times of year that are best for securing a good lease deal. Let's look at the advantages of the timing so you can save money.

End of the Month

Many dealerships must meet monthly sales goals in order to receive bonuses. As the end of the month approaches, dealers are motivated to cut prices and may offer special lease incentives so they can meet their goal. The end of the month can be a good time to offer to negotiate a price discount even if the dealership isn't advertising one.

End of the Quarter

Some dealerships must meet end of quarter goals in order to receive manufacturer's bonuses. When dealerships offer incentives so they can meet their end of quarter goals, you can reap the benefits. It may be worthwhile to wait until the end of the quarter to secure the best deals.

Holiday Sales Events

Along with major holidays come lease incentives and promotions that can save you money. However, watch out for special conditions that may have strings attached. Maybe the vehicle is only available in a certain color or the lease stipulates a lower mileage allowance. Do your research and read the fine print to understand special holiday sales events restrictions or conditions.

When New Models Are Released

Dealers move out old models and make room for new models in late summer and early fall when the new models are released. To get rid of the previous models, dealers offer motivating sales incentives and rebates.

You can certainly save if you're okay with the previous year's model. You'll still be getting a new car – and at significant savings. If a previous year's model interests you, just be sure to know what the new features or upgrades will be to determine if the savings will be worthwhile.

End of the Year

Dealerships aim to meet annual sales goals in December. Dealers don't want to be stuck with last year's model so will often offer enticing incentives. Leasing before the end of the year can be the best time for significant year-end incentives, including lower monthly payments or zero-down offers.

Tips to Get the Best Deals on a Car Lease

1. Know Your Credit Score

   Customers with higher credit scores are most likely to get the best interest rates on a lease.

   Higher credit score = lower interest rates = lower payments.

   Check your TransUnion, Experian, and Equifax credit scores before you lease. Knowing your score will help you understand your payments and negotiating power.

2. Look for Lease Incentives

   Manufacturers offer lease specials or dealership promotions to move inventory and meet sales goals. It's definitely worthwhile and cost effective to shop around for the best lease incentives.

   Incentives can include special deals like zero-down leases, mileage allowances, rebates, and reduced monthly payments for specific models.

   Research various offers to get the best deal and be sure to read all the fine print. Some incentives may look too good to pass up but actually include subtle restrictions that water down the amount you'll save – again, read the fine print.

3. Understand the Lease Terms

   Many important terms are unique to car leasing. To avoid confusion and unexpected surprises, you need to understand lease terminology. Learn about early termination fees, residual value, capitalized cost, and mileage limits.

   Understanding lease language will help you negotiate for better terms. Once you have a handle on the terms, always read the lease details and fine print before you sign a contract.

4. Negotiate the Lease Price

   Don't be shy about negotiating the capitalized cost. The capitalized cost is the price of the vehicle (the MSRP or Manufacturer's Suggested Retail Price) before the lease terms are applied to the contract.

   Lowering your capitalized cost can reduce your monthly payments. Refer to the best practices for car leasing to ensure you have all the information you need to maximize the best deal.

When Is Leasing a Car a Good Idea?

Leasing a car is a good idea when:

• You want lower monthly payments than you'd have if you purchased the same car.

• You want to drive a new model car every few years.

• You want to avoid the high maintenance costs associated with an older car.

• You have stable driving habits and don't drive over 10,000 - 15,000 miles per year.

• You want the latest technology and safety features of a new car.

Worst Time to Lease a Car

The worst times to lease a car are:

• In March and September when all the hype around new cars and new models is at its highest.

• When a vehicle is in high demand. If you lease a vehicle that's in high demand, you likely won't be able to negotiate a price lower than the MSRP. In these situations, it may help to wait 3 or 4 months until the supply catches up with the demand of that particular vehicle.

• When inventory is low. If your favorite model is hard to find, it's likely you won't be able to negotiate the lease price nor will there be deals and incentives.

Is Now a Good Time to Lease a Car?

You can find good lease deals year-round when you use the right strategies. Dealerships only offer incentives at certain times of year. However, online platforms, like Auto Bandit, offer competitive lease incentives and deals 24/7.

You don't need to wait for a dealership's periodic lease specials. Explore Auto Bandit's platform today to compare options and secure a lease on your favorite make and model that fits with your budget and lifestyle. Auto Bandit makes auto leasing safe, simple, and convenient.