Best Time of Year to Renew Your Car Lease

Best Time of Year to Renew Your Car Lease

Leasing a car is one of the best options you can choose when you want to acquire a vehicle without having to commit to a purchase. It’s also a great way to get a new car every few years so that you can always drive the latest model.

If you’re considering renewing as your lease approaches, there are a few things you should keep in mind to get the best car leasing deals possible.

When Is The Best Time to Renew a Car Lease?

You can renew your leased cars at three points in a year. The best time to get from a leasing company should be:

When a new model arrives

The old model will have a significant discount when a new model arrives. You can use this opportunity to lease a car and make it by monthly lease payments.

Most leasing companies will offer an auto loan for a leased car with lower monthly payments. This can help you save money on a significant down payment.

At the end of the year

Another best time to lease a car is at the end of the year. Dealerships are trying to get rid of their old inventory so they can make room for new cars, so they’re more likely to offer you a better deal.

When your lease is up

Lastly, the best time to lease is when the lease ends. If you’re happy with your current car and don’t want to get a new one, you can simply renew your expiring lease for another term. This is usually the most expensive option, but it’s still an option if you’re not interested in getting a new car.

Keep these things in mind, and you’ll be able to get the best deal possible on your lease a car renewal.

Things to Consider When Renewing Your Car Lease

Car leases are flexible, so you have a few different options for renewing your lease. Here are some things to consider:

1. Length of the lease

The length of your lease will impact the monthly payments you make. A shorter lease will have higher payments, but you’ll get a new vehicle sooner. A longer lease will have lower prices, but you’ll be stuck with the same car dealerships and auto loans for longer.

2. Mileage limits

Check the mileage limits on your lease term or lease agreement before renewing. If you exceeded the limit during your last lease, you might have to pay a disposition fee when you continue the lease.

3. Maintenance and repairs

If you didn’t keep up with the maintenance and repairs on your last lease deals, be prepared to pay for them. They are offering special lease deals. This is because you’re essentially starting a renewed lease with new models, so the dealership will want to ensure everything, especially the lease payments, is in good working order.

4. Early termination

If you need to get out of your lease early, you may be charged a fee. This is something to consider if you’re not sure you’ll be able to make the payments on your new lease.

5. Discounts and incentives

When you renew your lease car contract, be sure to ask about any discounts or incentives that may be available. You may be able to get a lower monthly lease payment or reduce your leased car’s value if you take advantage of these offers.

By considering these factors, you’ll be able to choose the best option for renewing your leased vehicle.

Car Lease

Why Lease a Car?

Compared to buying a brand-new car, leasing a car has several advantages. These include:

1. Lesser monthly payments

Since you’re only paying for the car’s depreciation during a lease, your monthly payment will be lower than if you were financing your next car purchase. You can talk to car dealers about your used car and the interest rate.

2. No long-term commitment

With a lease, you’re only committed for the length of the lease period. This means you can get a brand new car every few years without worrying about selling or trading in your old one. However, you need to ensure your credit accounts and report are clean, so your credit utilization will be used well. Plus, maintaining a good credit score will make residual values trend lower, as well as the trade-in value.

3. Lower downpayment

When you lease a car, you generally only need to pay the first month’s payment and a security deposit. This is much lower than your down payment to finance a purchase. The remaining payments can be divided into months.

4. Fewer repairs and maintenance costs

Since rented cars are usually covered by a warranty, you won’t have to pay for most repairs and maintenance during the lease term. It also comes with a residual value, mileage limit, and low depreciation cost.

The Bottom Line

Renewing your car’s lease can be a great way to get a brand new car without committing to a purchase. Check your lease contract for the best time to renew, and consider the length of the lease, mileage limits, maintenance and repairs, early termination fees, and discounts and incentives before making your decision.