. For starters, your monthly payments will likely be lower, maintenance costs are largely covered, and you have the option to drive a brand new car out of the lot again in just a few years time.

You can think of

leasing

as essentially renting your car from the dealer for a period of two to three years, then trading it back in to

get a new car

and start the rental process over again. But, when’s the best time to lease a car and start this rental agreement, to ensure you’re getting the best deal possible? The answer isn’t as straightforward as you might think.

Leasing a car at certain times of the year could ensure you get the best deal.

Best times to lease a car

Surprisingly, the best time to lease a car typically aligns with the best time to buy a car. Here are some conditions that mark it’s the optimal time to begin your lease.

When a new model hits the market. According to

Experian

, one of the best times to lease is when a new model comes out. This makes sense, because dealerships are often eager to get out the older models to make room for shiny, new cars on the lot. While you probably won’t get a good deal on the newest model, you can score a good rate on older cars still available.

New Year’s Eve and other holidays. We’ve already discussed the

pros and cons to buying a car on New Year’s Eve

, and the same rationale is true for leasing. On New Year’s Eve, many dealerships are rushing to meet their quotas for the year, and will likely give you a better deal on a lease. The same might be true about other holidays like Black Friday, Memorial Day weekend, or Labor Day weekend when car dealerships have sales happening.

When it’s quarter end. Similar to why it makes sense to lease a car on New Year’s Eve, it also makes sense to wait until car dealers quarter end to look for a lease. Like at the end of the year, at the end of the quarter many salespeople are rushing to meet quotas. This means, it could be a great time to lease.

Worst times to lease a car

Just like there is a best time to lease a car, there are also bad times to lease a car. Let’s take a look at some conditions you want to avoid when leasing.

The beginning of the month, quarter, or year. If the month, quarter, and year end are the best times to lease a car, the end of those periods are the worst times to lease a car. At the beginning of these periods, dealers don’t have as much of an incentive to move cars, so they might not be as willing to give you a good deal.

When the market is hot. As

Autolist

notes, doing your research by keeping an eye on the market and checking sales reports can help you decide when the best time to lease is. As you might’ve noticed by now, meeting quotas is a common theme throughout this article. If the car sales market is doing particularly well in any given month or quarter, dealers won’t be as inclined to sell you a car.

Is leasing right for you?

MORE:

These Automakers Won't Let You Sell Your Lease Outside the Brand

Leasing isn’t the right choice for everyone. Here, we’ve outlined some criteria that indicate leasing might be your best option. But, if this list doesn’t sound like you, consider buying a car instead.

You can commit to the full lease term. As

Kelley Blue Book

points out, ending a lease early will likely require you to

pay a hefty fee

, sometimes even making all remaining payments outright. Before you sign a binding lease contract, make sure you’ll actually want and need a car for the duration of your contract, and you can make the payment each month.

You have a high credit score. Typically, leasing requires a higher credit score than financing, because if you stop making payments on a lease, all you really stand to lose is your down payment. In the first three months of 2021, 83% of car leasers had a credit score about 660.

You like getting new cars. Leasing allows you to swap out your car and start a new agreement every two to three years. If you really enjoy the new car smell, or get bored of your vehicle easily and long for the newest model, leasing is a great option.

You want to keep car expenses low. When you finance a car, you typically have to put down a large percentage of the total car cost upfront, then pay the rest off in high monthly increments. With leasing, your down payment and monthly payment will likely be lower. Plus, the dealer often covers maintenance costs if a part of the car malfunctions.

Lease

Written By

Alexandra Maloney · Expert Insurance Writer

"Alexandra Maloney is an insurance writer who specializes in vehicle rankings and basic insurance topics. Alexandra’s mission is to create articles that help car owners select the best vehicle and insurance coverage for their lifestyle, budget, and drive. Alexandra has written more than 300 articles for Jerry, ranging from vehicle safety topics to vehicle maintenance costs. Before joining Jerry, Alexandra studied journalism and business administration at the University of Richmond."

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