4 Reasons Car Lease Prices Could Go Down in 2025
Written by
Brooke Barley
Edited by
Zuri Anderson
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Drivers looking to lease a car in 2025 will be delighted to know that the price of auto leases could be on the decline. In 2024, car sales were down so automakers and dealerships could be looking to make back some money by lowering lease prices.
GOBankingRates reached out to car industry experts to get their takes on why consumers could be getting deals on car leases in 2025.
Decrease in Interest Rates
If the interest was a factor preventing consumers from leasing a car, here’s some good news.
“One big reason car lease prices could go down is because of decreases in interest rates, or as related to car leases, ‘the money factor,'” said Erin Kemp, consumer advocate for Bumper. “With the Federal Reserve reducing rates three times this year, that is expected to have an effect across many industries, including the automotive industry.”
Eamonn Turley, a car expert and CEO of Multi Quote Time, agreed that interest rates are a contributing factor to leases costs decreasing.
“When interest rates fall, the financing costs for leases go down, which can translate to lower monthly payments,” he added.
High Residual Values
Turley explained that one of the biggest factors in determining a car’s lease price is the estimated value at the end of the lease term.
“In cases where manufacturers are predicting high residual values due to the market conditions, the prices of leases tend to drop because the cost of depreciation, over the lease term, has become lower,” he said.
Increase in Inventory
Inventory has been down since 2020, but Kemp explained that’s changing for customer’s benefit.
“Many predictions have forecasted inventory to increase in 2025 as lasting effects from the pandemic are starting to be corrected,” she said. “More inventory leads to an advantage for the consumer in the form of lower prices.”
New Incentives
Because of increased inventory, Turley explained automakers could be introducing new incentives for customers to buy in.
“Automakers or dealerships often give more aggressive lease incentives when they are overstocked with vehicles, especially when they need to move the current inventory to make way for newer models,” he noted.
Kemp recommended consumers look out for new incentives being offered to save even more money on their 2025 car lease.
“Finding the right incentives could lead to a lower lease payment,” she said. “This will vary by dealer and location, but finding a good deal in the new year could lead to more money in your pocket.”
This is especially true for those looking to get behind the wheel of an electric vehicle (EV). For instance, California offers several different types of incentives encouraging drivers to get EVs.
These incentives could be very beneficial to look into when perusing lease options.
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