According to Kelley Blue Book, leased cars ordinarily make up a third of car sales, but in 2022, that percentage fell to under 20%. Cox Automotive (Kelley Blue Book's parent company) anticipates that leases will rise to over 20% in 2023, which is still down from the norm.
Because the average price of new cars is around $48,000, leasing might make more sense to you. CNBC reports that vehicles coming off lease from 2019 and 2020 are now worth an average of $4,000 more than predicted, so it's anticipated that the used car prices will rise when these used lease cars go into circulation at dealerships. This trend can mean the residual value will be higher for your lease, lowering your payments.
By leasing your vehicle at the right time, you could save money. Generally, there are several factors and times of the year to lease a car. Leasing a car in 2023 might be better economically than any other time. If the off-lease prices are rising now, they may continue that trend making cars more expensive.
If you’re considering a lease and have bad credit, find out if you can lease a car with bad credit.
Holidays
Everyone who watches television knows that the holidays are the time of the year when manufacturers encourage dealerships to promote sales. Toyota is famous for its annual Toyotathon sales, including deals on lease terms, low APR on retail contracts and no-cost maintenance plans.
Memorial Day weekend and the 4th of July are popular car sales holidays. Many dealerships will combine these holidays with giveaways, radio promotions, live broadcasts, and serving hot dogs, hamburgers, and wings to people who visit their dealerships.
End of the year: October through December
By the year's fourth quarter, the dealership management knows where they stand on reaching their annual goals, so this is their last push. They may be willing to negotiate with you for lower payments, lower upfront costs, and optional equipment.
- October - Everyone is excited to see the new models, so take advantage of this excitement and make a deal on a leftover model.
- November - Black Friday promotions extend beyond retail stores; many automakers also offer special leasing deals throughout November that can lead to significant savings.
- December - The end-of-year holiday season is another prime opportunity for dealerships to boost their numbers before closing out the calendar year with enticing lease specials.
Tax season
Many people receive tax refunds in springtime, increasing their purchasing power; this could lead dealerships to offer competitive deals during this period. Dealerships often create an advertising campaign around tax refunds to boost sales from early March to mid-May.
End of the month or quarter
Dealerships typically have monthly and quarterly sales quotas that can lead to more aggressive negotiations as they strive to meet their targets. Dealers push harder during slower months when foot traffic might be lower than usual.
New model releases
Every year, automotive manufacturers introduce new cars. Some new models have complete makeovers, while others may only have technology upgrades to safety features or infotainment options. Next year's new vehicles arrive in late summer or early fall. Dealerships are motivated to sell out their previous year's models to make room for the new ones, which means there may be incentives for leasing a prior year's model, especially if there is a body style change.
