New Cars, Lower Prices – Is Now a Good Time to Lease a Car?

Here at Twin State Ford, we’ve navigated the rough economic waters these last few years through the pandemic and are here to help you chart a course toward a worthwhile leasing experience. With the auto market finally beginning to swing in the direction of recovery, many are considering whether leasing is currently the best option for them. The price of purchasing a new vehicle has been high due to the shortages and economic uncertainty caused by the COVID-19 pandemic, leaving consumers continuously uncertain about when and how to re-enter the market. Many customers have asked us whether it is now a good time to lease a car. In response to this common concern, we’re here to clear up any confusion and guide you through acquiring your next vehicle. We’ll discuss the factors at play to help you determine whether now is the right time for you. 

Leasing a Car in 2024

• New Cars, Lower Prices: The overall inventory of new vehicles across the United States has been steadily increasing, meaning that prices have begun their gradual decline. We’re at the beginning of a buyer’s market, and leasing provides the opportunity to lock in a predictable monthly payment without concern about long-term depreciating prices.
• Lower Interest Rates, Higher Customer Interest: Throughout 2024, interest rates are predicted to fall gradually, so buying a car on a traditional loan may appear to be the more affordable option. Is it a bad time to lease a car? Not particularly. Budget-conscious buyers may opt into leasing instead, as while the lowered interest on starting a loan may appear to be in better sorts than in previous years, leasing is based upon a markup of the wholesale price and not determined by the interest rate. In fact, monthly lease payments are generally much lower than loans, and given that it will take more time for the market to make a full recovery, may still be a better option than traditional loans for the time being.

Now is the Time to Lease Electric

If you’ve been exploring whether now is a good time to lease a car, consider exploring the world of electric vehicles. Opting for a lease may be the best way to test the waters while allowing you flexibility and affordability that might not be as accessible as buying a car.

• Save Big with Tax Credits: Electric vehicles may allow you to qualify for up to a $7,500 Federal EV tax credit for 2024 while evading the qualifications that generally apply to buying a car. Some factors in buying an EV to qualify for the tax credit include where the car was made, the cost, and the buyer’s income level. As you’d only have the vehicle for a shorter period on a lease, this can provide you with a better deal on top of having a lower monthly payment.
• Adapt with Innovation: The EV market and regulations are like the Wild West, with new technologies regularly being introduced to improve the quality of these eco-conscious vehicles. New batteries and charging standards may be introduced over time. Hence, leasing helps you avoid getting left behind by providing a shorter-term period that ends with returning the vehicle and the opportunity to easily upgrade it for the latest innovation. If you’ve been eyeing the Ford F-150 Lightning, but don’t want to fully commit unless you’ve experienced its fullest potential, leasing offers you flexibility and affordability without falling behind on the latest technology.

So is now a good time to lease a car? Absolutely! It may be more optimal to lease now rather than to buy, as it allows buyers to secure a lower payment over a short-term period, without being affected by interest rates. If you plan to buy a new vehicle in a few years when the interest rates and vehicle prices return to pre-pandemic levels, leasing may be the best manageable intermittent option for your budget.

Leasing Your Next Ford

Still unsure if a lease is right for you? At Twin State Ford, we’re committed to helping you determine the best option for your lifestyle, keeping in mind the factors of your budget alongside the changing economy. Our friendly professionals are savvy in assisting on whether leasing aligns best with your financial goals, and are available for any questions or concerns to help you through the process. Visit us for a test drive and drive off in your dream car today!