Dropping New Vehicle Sales In August Mean Great Lease Deals In SeptemberSeptember 12, 2017
As the new car market continues to come off its multi-year boom cycle peak, sales are cooling. August 2017 was the fifth month in a row that the daily selling rate had fallen below the same month of the previous year, and represents the lowest selling rate since February 2014. Even if you add back the sales lost due to Hurricane Harvey, the trend is still down. This is not great news for carmakers and dealers.
But it is a truly great time to be looking for a great lease deal! Many factors have come together to create a “perfect storm” if you are in the market for a great vehicle lease with a low monthly payment:
- Overall sales are dropping, so there are more vehicles in stock
- Vehicles are sitting on lots longer before being sold
- There are huge amounts of leftover 2017 models on hand
- The new 2018 models are being released
- Incentive spending is up, to an average of nearly $4,000 per unit
- The trend to SUVs and trucks continues, with cars losing market share
More Vehicles In Stock Means That Dealers Need To Sell More
There are currently a huge number of cars in dealers’ inventories. This is an advantage for leasing customers for several reasons. You have a great selection to choose from, and dealers really want to sell them down. You win both ways!
Vehicles Are Taking Longer To Sell
Dealers have a certain amount of time to sell a vehicle after it lands on their lot. After that, they have to pay interest on it, known in the trade as “floor planning,” while it sits there. In August, the average vehicle sat on a dealer’s lot for 74 days before it was sold. This is an excellent incentive for them to give you a great lease deal now.
Many 2017 Models Are Still Unsold
New car dealers really need to sell out their 2017 models before the 2018s arrive, and the 2017s are still plentiful. They will give you a great deal to take one off their hands. Some brands have more leftovers than others, so compare deals to see who has the best offers on 2017 models.
New 2018 Models Are Arriving Daily
The new 2018 models are arriving at dealers, adding to the large number of new cars available. These vehicles have all the latest technology and safety features. You will find good lease deals on these as well, because dealers need to reduce their inventory levels quicker as sales slow down.
Incentives Are Plentiful And Generous Across The Board
If you are looking for a great deal, they have not been this good in a long time! An average of almost $4,000 per vehicle in incentives was offered in August. This is more than 12 percent higher than just a year ago! A wealth of cash rebates and subsidized lease deals is available on just about every vehicle you will find. September will be a great time for a great lease deal!
As Cars Lose Market Share, Car Lease Deals Get Even Better!
Cars continue to lose market share to trucks and SUVs. In August of 2017, cars’ share of the market was down to 35.5 percent. This translates directly to some truly outstanding lease values on cars from a variety of manufacturers, featuring the highest incentive levels of any vehicle type. If a car meets your needs, be sure to check out the relevant September lease deals.
September 2017 Is A Great Time To Get A Spectacular Lease Deal!
Check out our other articles for specific lease deals on various types of cars, trucks, and SUVs. We are sure that you will find some amazing deals on the vehicles that you’d like to be driving next!
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