When you’re looking to lease a car, you’ll want to secure the best possible price, but did you know that there are times of the year when you’ll get a better deal on your car lease? We share these money-saving months in this article.
Timing is everything when it comes to getting the best car lease deals. Understanding the key periods and factors influencing leasing costs can help you save significantly.
Knowing when to lease can make a big difference, whether it’s the release of new models, specific registration periods in March and September, seasonal promotions, special offers, or in-stock lease deals – there are savings to be made. This guide will help you identify these opportunities to secure the most favorable terms for your next car lease.
What is a car lease, and how do they work?
Car leasing allows using a new car without the upfront cost or commitment of purchasing it. Instead of buying the car outright, the lessee pays a monthly fee to use it. Depending on the type of lease agreement, at the end of the lease term, the lessee can return the car to the leasing company or purchase it.
Car leases are available for any number of months but are typically categorized into short-term or long-term leases. Short-term leases, like those provided by Flexxilease, are typically 1 to 18 months and are ideal for temporary needs. Long-term leases are typically around 3 years on average, with a maximum length of 4 years.
Two common lease agreements are Personal Contract Purchase (PCP) and Personal Contract Hire (PCH). PCP involves you paying an initial deposit and regular monthly payments thereafter until the lease ends, with the choice to buy the car at the end through a final balloon payment. On the other hand, PCH leases lack ownership options and allow you to return the car at the end and be free to start a new one.
When to get the best car lease deals
There are 5 key times to get the best car leasing deal, let’s take a look at each.
1 – When a new model is released
The best time to secure a lease deal is when a new model hits the market, as monthly payments for leasing for the older model drop substantially. During these times, leasing companies are keen to clear out existing stock, offering more competitive rates on old models to make room for the new ones.
What happens to older models when a newer model is released?
A car’s value decreases when a newer model is released. The newer model is typically more desirable and valuable, so the demand for the older model decreases. Let’s look at the reasons behind this.
- Depreciation: Introducing a new car model often accelerates depreciation for the older model. As the latest features and improvements are marketed to consumers for the new model, the older version is perceived as less valuable, causing its market value to drop.
- Technological advances: Newer car models typically have updated technology, safety features, and fuel efficiency, all of which are persuasive leasing factors that distinguish it from the previous model.
- Styling changes: Changes in design and styling – even color can make an older car model appear less attractive than the new release. Aesthetics play a significant role in consumer preferences, so older models typically experience a decline in demand as they age.
When you’re considering a new car lease, check when the next models of your favorite lease car are due. Timing it right could result in £1000s off the overall cost of your car lease, depending on which lease you opt for. Leasing a car just before or after a new model drops can allow you to secure a great deal when you don’t mind driving a slightly older model.
2 – March and September
Cars registered in March receive plates with numbers denoting the year (e.g., ’24’ for 2024), while those registered in September receive plates with a number incremented by 50 (e.g., ’74’ for 2024). A pre-reg car is a new vehicle registered not to an individual but to a dealership, broker, or leasing company. Your car leasing company will have pre-reg cars available that they’ll want to get rid of at the point of new car registrations. If you’re looking to secure a lease deal for the newest model or to grab a bargain, March and September are the times for you. These months mark the release of new registration plates in the UK.
Leasing a car around these months allows the lessee to be among the first to drive a car with the new plate or allows the savvy lessee to take advantage of leasing a pre-reg. Opting for a pre-reg deal allows you to lease a brand-new car at a significantly reduced price.
March and September are vital months for car leasing companies aiming to hit their biannual sales targets. To boost sales, leasing companies frequently offer significant discounts around these months, such as better financing options and more attractive lease terms.
3 – Seasonal promotion
The car industry typically experiences a slowdown during winter as people focus on holiday expenses. This presents an opportunity to secure a deal on a leased car as leasing companies offer reduced prices to boost leasing demand. The end-of-year sales targets, inventory clearance efforts, holiday promotions, and reduced competition create an opportunity to secure the best deal on the lease car.
4 – Special offers and in-stock lease deals
Throughout the year, leasing companies offer special offers and in-stock lease deals on popular models. These deals often provide discounted prices and competitive rates, making them an attractive option for those looking for a good deal.
Final thoughts
The ideal time to lease a car is often after the release of a new model when there’s abundant stock of pre-registered models. Opting for an older car can save money, especially if the lessee is flexible about registration plates. Awareness of these opportunities can lead to significant savings, whether the release of new models, specific registration periods like March and September, seasonal promotions, or special offers.