So, you’re planning on leasing a Jeep. Wise move. There are several benefits to leasing over buying, not least of which is the ability to get into a nice new Jeep every few years. But have you considered when you should lease? You should because such knowledge can save you cash. Read on for the best time of year to lease a Jeep.
What are the Benefits of Leasing?
Let’s do that first. Because many people are fuzzy about the advantages of leasing a vehicle over buying, they ultimately miss out. While your decision to lease or buy hinges on your lifestyle and financial situation, here is why leasing can be beneficial:
- Lower monthly payments. Yes, this tops the list of advantages. Be mindful that when you sign on to buy a vehicle, you must add interest to the vehicle’s purchase price over the life of the agreement. But with leasing, instead of the purchase price, you’re just financing the vehicle’s depreciation over the lease term. The result is usually much lower payments.
- Little to no down payment. You may have to plunk down a down payment of up to 20 percent of the sticker for a car purchase. However, you may be able to get all the way around a down payment for a lease. Yes, you’ll have to pay title and registration fees, along with taxes and the first month’s payment, but added together, the total is still usually less than a purchase down payment.
- No worries about reselling. If you have a closed-in lease, you just return the Jeep and get another ride when the lease ends. There may be some liability for excess mileage or wear and tear, but at least you don’t have to concern yourself with reselling, which can be a headache.
- Less-pricey repairs. Carmakers typically offer a bumper-to-bumper warranty, and sometimes take care of maintenance.
- You can always drive a new car. Because vehicle leases are usually relatively short – between two and four years – you can pick up a new vehicle when your lease ends, and with all the newest technology.
- More vehicle options. Leasing allows you to drive vehicles that you may not qualify for if you were buying, since you can usually get that same lower lease payment for more expensive models and trims.
- You can buy at lease’s end. Many people don’t realize that, with leasing, you usually have the option to buy your vehicle at a predetermined price.
The Best Time to Lease a Jeep
Now that with have the benefits of leasing covered, let’s explore the best time of year to seek out Jeep lease deals. After all, time can be of the essence if you want to experience real savings.
Let’s just say this outright: the optimal time to lease a vehicle is usually just after the model’s unveiled. Why? Because that’s when the vehicle’s residual value is at its peak, which means you’ll probably save cash on the cost of depreciation. Such values are typically based on the Automotive Lease Guide’s Residual Percentage Guide, which is revised every two months. Residual values tend to decrease as the model year advances.
Say you leased a vehicle for three years around the end of its model year. In that case, the vehicle would be categorized as four years old when it’s time to turn it in. What this means for you is the necessity to shell out for an additional year’s worth of depreciation.
But naturally, a vehicle’s negotiated price typically decreases as the model year advances. You should be able to get a good price on your lease if you leverage negotiations properly.
What if the vehicle’s a hot seller, you ask? In those cases, when the model is initially unveiled and demand is high, it may be difficult for you to finagle a price that’s below the sticker. What you should do is wait a few months so that supply can catch demand.
Also, if the vehicle in question isn’t all new, consider leasing shortly after introduction. This is because most carmakers raise their vehicles’ MSRP and invoice prices amid the model year, which can add to the vehicle’s price.
Because most new models come online between July and October, try to time your leases to those months to maximize your savings. Do keep in mind that if the automaker is offering special lease deals, it matters not when you lease. You should jump on these whenever they’re available.
Ultimately, knowledge is power, and in this case, it can also save you cash. Knowing the best time of year to lease your Jeep can make a happy occasion even sweeter. The prospect of getting into a new Jeep is very exciting … just temper that excitement long enough to get the best lease deal.
