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Save Money with an End-of-the-Year Car Lease

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Man and Woman Car Dealership

You’ve probably heard that buying a car at the end of the year can often result in a great deal. Dealerships are eager to clear their lots for the upcoming year models, so that usually translates into big savings for drivers ready to buy. But, what if you prefer to lease a vehicle instead of buy? Well, it turns out that end-of-the-year leases can reap savings as well.

Learn More: About the 2020 Chevy Silverado 1500

“If you have your eye on a 2020 vehicle, leasing it at the end of 2019 rather than early in 2020 could have an impact on your monthly lease payments. Model year trumps calendar year,” according to Autotrader writer Russ Heaps.

Why is model year more important than the calendar year? One word: depreciation.

“If you lease a 2020 vehicle for 36 months this year (2019), the lease will expire in 2022. If you wait until 2020 to lease that same vehicle, the lease will conclude in 2023. Your 2020 vehicle will be worth less in 2023 than in 2022, which means an extra year’s depreciation,” writes Heaps. “Because most of the depreciation of a new car is in the first couple of years, the difference you might pay for that third year of depreciation may not be worth fretting over, but money is money.”

If you want to save even more money on a lease, shift your focus to the dealership’s inventory of used vehicles, suggests Heaps. (Of course, make sure before you head into the dealership, you’re pretty clear on what model you want).

“Someone else has already paid the bulk of the depreciation, which means lower monthly payments for you. You can save hundreds or even thousands of dollars over the leasing period,” according to Heaps.

Check Out: The 2020 Chevy Traverse

News Source: Autotrader