Reviewed by Arthur Geller, Auto Lease Concierge · Updated · How our numbers work
Short answer: the newest model year isn't automatically the better lease. Right now a lot of 2026 models carry lease credits that most 2027s don't, so the 2026 often comes out lower per month for almost the same car. The only way to know is to price both, on the same miles and the same money due at signing.
A real example from this month
Look at the BMW X5 xDrive40i on our X5 page. The 2026 is $930 a month for 39 months. The 2027 is $1,004 a month for 42 months. Both are $2,000 due at signing, 7,500 miles a year, monthly payment plus sales tax, with BMW loyalty credit, Tier 1 credit through BMW Financial Services, ending November 30, 2026. Same SUV, same driveway, about $74 a month apart, and the 2026 is also the shorter lease.
Mercedes-Benz is doing the same thing this month: every 2026 model I priced came with Mercedes Incentive Bonus MBFS Lease cash, while the 2027s got a smaller bonus or none at all. You can see the current numbers on our Mercedes-Benz page.
Why the older model year often leases for less
When I sat in the finance office, the first thing we checked every month was which cars the manufacturer was paying to move. When the new model year lands, the outgoing year still has to be sold, so that's where the lease credits usually go. The new model year usually gets them later, once there's more of it on the lot.
On a lease, that credit comes right off what you pay. The new model year sometimes has a stronger bank program of its own, which is why you still have to price both. Some months the 2027 wins.
Three things that move the payment more than the year
- Lease credits. Manufacturer lease cash, bank lease credits and dealer bonus cash change month to month, and they rarely apply to every model year or trim equally.
- Loyalty credits. If you drive a BMW or Mercedes-Benz now, you may qualify for a loyalty credit on your next one. It's not automatic: tell me what you drive now and I'll check.
- The term. Everyone assumes 36 months. This month the BMWs I priced mostly came out lowest at 39 months, and most of the 2026 Mercedes came out lowest at 24. I check the terms and show you the cheapest one that fits.
When the 2027 is still the right call
- The 2027 has an update you actually care about, like new tech, safety features or a new design.
- The color or package you want only exists in the new model year.
- The 2027 has a better program that month. It happens, which is why I price both.
How to compare them the right way
Compare the monthly payment, the term, the miles per year and the total due at signing, all four, for both model years. A lower payment with more due at signing or fewer miles isn't a better deal. If you already have a quote from a dealer, send it to me and I'll compare it line by line for free.
Want both priced on the car you're looking at? Text or call me at (267) 216-6659, or see this month's specials. When you're ready, the secure Credit Application takes about five minutes, and I deliver free anywhere in PA, NJ and DE.