CINCINNATI—Holiday car shoppers looking to save a few bucks by buying the outgoing model year may be losing money—at least when it comes to leasing.
An analysis by Swapalease.com shows consumers can often get a better lease deal if they opt for the incoming model year, even in December when end-of-year negotiating heats up.
“For example, consumers can lease a 2017 Ford Fusion for $327 per month, compared with a new 2018 model priced at $199 monthly. This may not be the case in every situation, but consumers should make sure they shop around to determine when the incoming model year is actually offered cheaper. In most cases, the reason the 2018 model is cheaper in a lease environment has everything to do with the residual, which will be higher than that of the 2017. A higher residual value equates to a lower monthly payment for the consumer,” Swapalease.com said.