You’re probably thinking that the timing of your lease isn’t that important, but if you time it right, you could end up saving money on your monthly payments
You’ve done all the research and figured out the finances, now you’re ready to lease a car. You’re probably thinking that the timing of your lease isn’t that important but if you time it right, you could end up saving money on your monthly payments! To understand how this is possible, you need to understand how the amount for the payments in established.
When you decide to lease a car, you are making the decision to only keep the car for a limited time (unless you decide to buy it at the end of your lease). However, the value of the car will go down as you use it and this is called depreciation. The business will determine the value of the car and estimate how much it will depreciate in value while you have it, and that is how they calculate the payments you have to make monthly. Instead of paying for the whole value of the car, you are only paying for its value depreciation.
Since your payments are based on how valuable the car will still be when your lease is over (residual value), the best thing to do is lease a car that is brand new and has been recently introduced to the market. If you lease the car at its highest value and return it in good condition, it will still have a decent value and be suitable for another lease period or for sale. This fact makes the monthly payments lower for you.
Now, as for the best month to lease a car, that is quite easy to answer. The best month to lease a car is December. At the end of the year, companies that deal with sales are pressed to meet their annual targets/goals. Therefore, in December, companies will push very hard to make sales and meet their targets before the year ends. This means there will most likely be price drops, incentives and deals brought forward to draw customers in. Car leasing businesses will have better deals on their leases.
If you can manage to lease a car both in December and while the car model is still relatively new, you definitely find yourself saving a fair amount of money on your lease. Just remember that your payments will also depend on how good your credit is too.
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