Where are the Best Car Deals 2017?

2015 best car dealsUntil the last few years, the best way to get a great car deal was … to work hard for it by haggling with stubborn dealer salespeople. With plenty of luck, careful preparation,  and a heap of negotiating skill, you might get a good deal.

You would increase your chances of getting a good deal if you knew the best time of day/month/year to buy, knew dealer invoice prices and holdbacks, and had good bargaining savvy— and possessed the stamina for long stressful haggling sessions with dealer salespeople who would try every trick in the book to wear you down — not a pleasant experience for many people. Most people hate it and don’t look forward to it.

It’s not that haggling still isn’t necessary. It is in many cases. But the best car deals don’t happen that way anymore. Things have changed. The best deals are actually given to you — without hagglingby major car companies in partnership with their dealers.

Car manufacturers, in these challenging economic times, are hungry for your business and are willing to offer ready-made deals that were offered much less frequently in the past. These are deals that buyers could not possibly negotiate for themselves — because dealers are not capable of making the kind of concessions that their deep-pockets parent car companies can make. You could haggle with a car dealer all day and all night and he still wouldn’t be able to give you large price discounts, rebates, bonuses, 0% APR loans, or give you special subsidized leases, if he didn’t have help from his parent car company.

Use Edmunds.com to find the best deals currently being offered by dealers in your area.


When a Good Car Deal is Not a Good Deal

good car dealsYou just got this great deal on a new Ford Explorer XLT for which you paid only $29,217!

The MSRP sticker price was $33,795, which means you got a savings of $4578.

Wow !!!

That’s 13.55% below MSRP! A great deal.

It’s even below dealer invoice price of $32,183.

However, when you went into the F&I (Finance and Insurance) Manager’s office to apply for your loan and sign the papers to conclude the deal, the deal began to fall apart.

Here’s how.

Not knowing that it’s the Finance Manager’s job to make additional profit for his car dealership, you fell for most of his attempts to sell you additional services and products, all of which erode your deal, make a lot of profit for the dealer, and don’t provide you good value in return.

Let’s take a look at what you bought and why you probably shouldn’t have.


Negotiating Car Deals – Explained

negotiating a car dealMost of the kinds of car deals that we discuss on this web site don’t require negotiation because they are pre-packaged deals offered by car manufacturers, not dealers. They are usually genuinely good deals and better than any deal customers could negotiate on their own with a dealer.

However, these promotional incentive offers are limited to specific makes, models, and styles and are only good for a specific period of time, usually a month. Some manufacturers regularly offer such incentive deals; others do not.

So, what is the best way to negotiate great new-car deals when there are no incentives being offered?

1. Know your car and know your prices – do your homework first

Before you ever contact a car dealer, you should have already done your homework. Use the Internet to research the car you want, its options, color choices, features, and prices. Go to a dealer and test drive the car you like, but leave your checkbook at home. Use web sites such as Edmunds.com  to find special dealer prices and incentives. If you will be trading a car, use Edmunds or Kelley Blue Book web sites to get trade-in values. In order to intelligently negotiate prices, you have to know what you’re negotiating for. You have to know what are reasonable negotiation targets, not blindly “shooting in the dark.”


How to Get the Best Car Deals

Best car dealsOn this web site we write about promotional car deals and incentives being offered month to month by car companies and their dealers. The deals are usually well worth customers’ consideration and better than deals they could negotiate for themselves.

These deals come in the form of cash-back rebates, bonuses, low-interest loans, factory-to-dealer cash, and special lease deals and usually change from one month to the next. A particular vehicle may be a good deal one month and no deal the next.

The downside of this method of finding good car deals is that if you are looking for a certain vehicle make, model, and style (trimline), there might not be any incentives on it in the month that you would like to buy or lease. And there’s no way for you know to if there will be incentives offered if you wait a month or two, or ever.  Car companies rarely offer special deals on every model and trimline. Some hot selling vehicles may never get incentives.

So, how is it possible to get the best car deals when there are no manufacturer’s deals are being offered on the car you want at the time you want it?


Five Things to Know About Car Deals

best deals on carsFive important things to know about car deals

1. Dealers must make a profit and therefore can’t sell cars below their wholesale cost (invoice price) — except when the dealers’ car companies (manufacturers) sweeten deals on particular vehicles, with incentives such as rebates and bonuses. Since the incentive money doesn’t come from dealers’ pockets, dealers can sell cars for less than invoice price and still make a profit. Therefore, automotive consumers get the best car deals when there are manufacturer incentives on the vehicle they want to buy or lease. Without incentives, however, dealers shouldn’t be expected to sell at or below their cost.

2. Dealers make money many different ways other than straight profit on vehicle selling price. Customers often think they’ve gotten a great deal when, in fact, they haven’t. A dealer can get cash from his manufacturer in the form of hidden factory-to-dealer rebates, holdbacks, and bonuses for making sales goals — all of which adds to profit. Dealers also make profit from boosted loan interest rates (“reserve”) and unofficial fees, such as “documentation”fees. Most of these items are not negotiable since they are not listed on sales contracts. Dealers do not make profit on official fees such as environmental protection, tax, tag, and title charges. One of the sources of much dealer profit comes from the Finance Manager’s office when he sells extended warranties, service contracts, credit insurance, life insurance, security services, and paint/fabric protection. These items are high-profit sales for dealers but overpriced and often not needed by customers.


Car Incentives Explained

new-car-incentivesSelling new cars is a very competitive business.

There are thousands of new-car dealers and there are a couple of dozen car companies who make thousands of makes/models/styles of cars. These companies are constantly competing for the business of car-buying customers.

One way they compete is by offering attractively designed vehicles that have the features, comfort, safety, performance, fuel-economy — and prices — that customers want. In many cases, price is the most important factor.

Although all new cars have a MSRP (Manufacturer’s Suggested Retail Price) on the legally-mandated window sticker, very few new cars actually sell for the window-sticker price. Most customers pay less.

How much less? See Edmunds for detailed pricing, including incentives, for all car makes and models. Get dealer price quotes so that  you how much less than sticker price you should expect to pay. In many cases, the price is less than a dealer’s factory invoice price.

How can a dealer stay in business by selling cars for less than sticker price?

First, the dealer typically has a potential profit margin of about 6%-8%. This is the difference between sticker price and invoice price, the price he pays when he buys the car from the manufacturer. Although a dealer must make some profit and pay for his own cost of doing business, he has some flexibility to reduce his profit margin and give customers a price discount. Often, the amount of the discount depends on the customer’s negotiating skills and price knowledge.


Cheapest Cars – Best Deals

cheapest carsMany people who are looking for affordable new cars will find the lowest prices on smaller vehicles.

These are vehicles that offer a lot of value for the money, provide excellent gas mileage, and are cheap to insure. The lowest priced models are often base models and sacrifice engine size and expensive features. For a little more money, within the same model line, other styles are usually available with extra features and larger engines.

We list the 10 lowest priced cars below, along with the MSRP sticker price. However, we all know that buyers don’t pay full sticker price for most new cars. Therefore expect to pay less than the prices shown. How much less? Use Edmunds.com to see what dealers are offering and get lowest-price quotes from your area.

Furthermore, most of the cars listed below have incentives in the form of low-interest loans (some 0% APR), special lease deals, and rebates which further reduces the price you pay.

Let’s take a look at the 10 cheapest new cars:

2012 Nissan Versa 1.6 S – MSRP: $11,770 (currently has 0% APR loan rate for up to 60 months)

2012 Smart ForTwo Pure – MSRP: $13,240 (currently has $99/month lease deal, 36 months)

2012 Hyundai Accent GLS – MSRP: $13,320 (currently has 1.9% APR loan rate for up to 60 months or $169/month lease deal, 36 months)


Guaranteed Car Pricing – No Haggling Needed

guaranteed car pricingBuying a new car can be a real hassle, especially the part about haggling prices with a dealer.

It’s not pleasant and can be very stressful, and most people hate it.

Some car companies and dealers are moving to fixed prices, which are not always great prices, but at least there are no negotiation shenanigans needed. Scion, for example, uses no-haggle pricing for all their cars. The price you see on the sticker is the price you pay. The few dealers who are trying out fixed pricing usually set the price below MSRP sticker price but not by much.

There is now a better way to get no-haggle prices from dealers. It’s called guaranteed pricing.

Here’s how it works.

Online car research and pricing services such as  Edmunds.com  work with a network of dealers all over the U.S. who have agreed to provide guaranteed low prices to customers who go through these web sites to ask for price quotes. The prices you see are almost always well below MSRP and are good fair deals. Prices can easily be below dealers’ cost when there are manufacturer rebates and bonuses included, which are automatically factored into the guaranteed prices when available.


First Car Deals – Buying Your First Car

Ford sign-and-drive dealsBuying a first car can be an exciting event in one’s life. However, in the excitement of the moment, it’s too easy to make mistakes that are irreversible. So, it makes a lot of sense to be smart and do your homework first.

Some common mistakes made by people buying a first car are:

1. Buying a car that doesn’t really meet their needs — for example, buying a small sports car when a larger 4-door sedan would have been more practical

2. Buying more car than they can afford, when considering monthly payments, insurance, fuel, and maintenance

3. Buying a car that doesn’t meet expectations in terms of quality, reliability, performance, fuel efficiency, or driving comfort

4. Paying too much, when other people are paying less for the same car — and paying too much for loan or lease financing

Many of the above mistakes are made simply because buyers often make quick emotional decisions rather than thought-based, logical decisions.  They don’t spend enough time considering the reality of their needs, their finances, and their expectations — and following up with sufficient and proper research to make a good decision.

So what are the steps needed to make for a successful first car purchase?


Great Car Deals – Secret Factor

best car dealsEveryone wants a great new-car deal.

But whether you actually get a good deal can depend on a number of factors such as:

However, there is another factor that can be even more important:

So, what is days supply?

Car companies manufacture vehicles in anticipation of near-future sales. They attempt to predict just how many vehicles of each model they will sell, which determines how many they make. Sometimes their predictions are wrong and they end up with a over-supply of certain makes and model vehicles.

Typically, 30-60 days supply of vehicles is about right. It’s enough to make sure they don’t get caught with no vehicles to sell, but not enough to cause a problem. However, when supply reaches 75-100 days, it’s time for something to be done to help move them.

The “something” is that dealers are more willing to negotiate and manufacturers are more likely to offer rebates and other incentives to make those vehicle models more attractive to customers. Therefore it’s good to know which makes and models currently have excessive days supply.

Following are new vehicles that currently have inventory in excess of 75 days supply, and are most likely to make good deals:


Secret Rebates Make Best Car Deals

dealer cash incentivesOn this web site we typically talk about the best car puchase deals, the best finance deals, and the best lease deals. However, there’s a kind of “hidden” rebate that can make any of these deals even better.

We’re talking about factory-to-dealer rebates, sometimes called “dealer cash” or “dealer marketing support.” It’s money that the car manufacturer provides directly to dealers to help them sell specific vehicles. Dealers can use the money any way they wish, such as for advertising or sales events, but more often it goes to customers in the form of a price discount.

Factory-to-dealer rebates are offered month-to-month and only on selected models and styles. The rebates may vary between regions of the country.

At the time of this writing, the largest factory-to-dealer rebates are on leftover 2012 models. The money helps dealers offer large price discounts to customers, which helps get rid of the older models. Therefore, customers looking for a brand new car might find last year’s model significantly less expensive than an almost identical current-year model. However, since inventory is limited, customers may have a hard time finding just the right style, color, and options they want. In fact, some dealers might have none of the leftover models at all.


Five Ways to Get Best Car Deals – Explained

best car dealsGetting the best car deals is not difficult but many people don’t know how to go about it. They end up spending much more money than they could have otherwise. Here are five things that will help you get the best deals:

1. Buy last year’s leftover models

Right now,  last year’s model cars are great deals as dealers and manufacturers need to get rid of leftover inventory and make room for new models. Since car makers only redesign cars about every 4-5 years, it’s likely that last year’s model of the car you want is almost identical to this year’s model — but at a much better price.

Manufacturers add “incentives” to make the leftovers more attractive to customers. These incentives can come in the form of large cash rebates, bonuses, low-interest loans, or special lease deals — or a combination of all the above. Although good deals are available on these vehicles, choices of colors and styles may be limited, especially later in the year.

Therefore, if you want to take advantage of “clearance” sales such as these, and you want a particular color, style, and options, it’s best to buy early and not hold out for possible better deals later.

2. Minimize your cost and dealers’ profit

Many people spend hours with a dealer negotiating a great price on the new car they want and then end up losing their great deal in the Finance Manager’s office. Finance Managers are charged with maximizing a dealer’s profit on every car deal. First, if you are trading a car, the dealer will offer you the lowest possible price, to increase his profit on the overall deal.

If you don’t know the fair value of your trade-in vehicle and insist on being paid that value, you can lose the advantage of the great price you negotiated for the new car.

Second, the Finance Manager will try to sell you a variety of “add-on” products and services, most of which are overpriced (for high profit) and unnecessary. He might offer extended warranties, insurance, security devices, paint and fabric protection, or service contracts. Each of these items, if purchased, increases dealer profits and reduces the value of a customer’s deal.


Best Cars – Lowest Prices

best car pricesThere’s no question that cars are expensive. For most people automobiles are the second-most expensive thing they will buy in their lives — after a home. Because cars eventually wear out and must be replaced every so often, many people will actually spend more on automobiles than on places to live during their lifetime.

Today’s average price for a new vehicle is about $35,000, a number that rises every year. This means the average-priced new car is beyond affordability for many folks who need one.

However, even though the average price is $35,000, there are still many excellent new cars with prices under $25,000.

Consumer Reports magazine, in its April 2014 annual Auto Issue, lists the under-$25,000 vehicles it considers the best in class, based on its own testing. Here are some of the results:

Chevrolet Sonic LT – $18,290

Honda Civic EX – $21,605

Honda Civic Si – $23,175

Hyundai Elantra SE – $19,010

Kia Rio EX – $18,450

Mazda3 i Touring – $21,740

Subaru Impreza Premium – $23,065

Toyota Corolla LE Plus – $20,652

Honda Accord LX $23,270

Hyundai Sonata GLS $22,495


Lease Vehicles – Which Are Best?

good lease vehicleIf you understand how car leasing works (if you don’t, go to LeaseGuide.com), you know that vehicles with projected high resale values make the best lease vehicles.

That’s because future resale value — called residual value in leasing — is one of the primary factors in determining monthly lease payments. The higher the residual value, the lower the lease payment.

Some car brands, such as Honda and BMW, consistently have high resale values compared to original MSRP (sticker price). Any vehicle whose resale value after 3 years is 55% or more of its MSRP is a good lease choice.

Kelly Blue Book has just announced its annual Best Resale Value Awards which names the makes and models that are expected to retain the highest percentage of  original list price — which means those vehicles are good purchase choices as well as good lease vehicles.

Here are the highlights of the announcement:


Good Car Deal – or Not?

1. A car dealer offers you what seems like a good price on a brand new car. Is it a good deal or not? Should you expect to do better?

There are two prices that are important to know when buying a new car. One is the MSRP (Manufacturer’s Suggested Retail Price) or “sticker” price shown on the car’s window sticker — retail price. The other is the “invoice” price — the price a dealer pays a car manufacturer for the car — wholesale price. With no other factors involved, a dealer can sell a car for a price anywhere between MSRP and invoice, depending how much profit he wants to make.

Many customers think dealers should sell cars at cost, which is ridiculous because any business has to make a profit to pay the bills and stay in operation.

Having said the above, dealers often get “help” from their manufacturer in the form of “holdbacks”, bonuses for making sales goals, and factory-to-dealer cash to help sell particular models and styles. Manufacturers also frequently offer direct customer rebates and bonuses.

Given this kind of help from the factory, dealers can often sell cars for prices that are below invoice price — with little or no money from their own pockets.


Understanding Car Lease Deals

Lease payment seems low but is it a good deal or not?

Let’s look at an actual car lease ad

honda deals 2Here is an actual newspaper promotional advertisement for lease deals from the Honda web site. We’ll focus on the ad for the Accord Sedan for $199 a month, for 36 months, with $2499 due at signing.

This ad is typical of most lease ads for other vehicle makes/models.

Are the advertised lease deals actually good deals? How can you tell? What do you need to watch for in the fine print.

The car lease ads normally seen on TV, in newspapers, and on car company web sites are generally limited-time promotional deals, and are genuinely good deals.

However, it’s necessary to read the fine print in the ads to determine the conditions under which the offer is being made.

What the ad says

$199 a month, 36 months, $2499 due at signing – Monthly payments will be $199 — plus sales tax (in most states) — for 3 years. Of the $2499 due at time of lease signing, $199 is for the first month’s payment (lease payments are always at beginning of month), which leaves $2300 as down payment (cap cost reduction).

36 month closed-end lease for a Honda Accord Sedan CVT LX. This indicates this is a closed-end “walk-away” lease, which is a normal consumer lease, not a commercial or business lease. The lease expires in 36 months at which time the car must be returned, or purchased. Only this specific model vehicle is being offered in this lease. The lease can’t be extended or changed to include some other model. The ad will also specify the time period during which the special deal is being offered.


New Cars Versus Used Cars

Used car dealsThis web site focuses almost exclusively on buying and leasing brand new cars but we realize that previously-owned used cars are the best solution for many people.

To set the stage for our discussion of used cars and getting great deals, let’s first point out that there are many more variables to consider when buying a used car than when buying or leasing a new car. With used cars, there’s the matter of condition, age, mileage, maintenance history, clear titles, accident incidents, price valuation, problem disclosure, and repair history —  all of which are not factors when buying a brand new car.

When you buy or lease a brand new car, the MSRP price is stated on the legally required sticker on the side window. Every dealer in the country who sells that same car has the same “sticker” price (although selling prices may vary). Therefore values of new cars are fixed, unlike values of used cars, which are highly variable depending on market conditions, region of the country, mechanical condition, mileage, and other factors already mentioned. Furthermore, with a little searching online at web sites such as Edmunds, you can find a dealer’s invoice price for any vehicle, the price he paid the manufacturer. There’s no way to do that for used cars.


Best Car Deals Depend on Inventory

car inventory and days supplyIf you’re looking for good new-car deals, you only need to look at the number of vehicles sitting on dealers’ lots and in manufacturers’ storage.

If it’s large number, you can expect to get good deals as the companies attempt to reduce the supply to more normal levels. The longer a dealer has a car on his lot, the more money it costs him, and the less money he makes when he sells it.

New-car inventory is measured in “days supply.” Dealers and manufacturers like to have enough supply on hand so that they don’t run out during normal sales periods, but not so much that it affects costs and possibly manufacturing schedules.

It’s a fine line that must be walked. Manufacturers try to predict how many vehicles are needed, based on dealer orders, and have that supply waiting. However, this is not a perfect world and predictions are not always accurate. This means that, often, dealers and car companies have more vehicles on hand than they can sell in a reasonable time.  Generally, having more than about 90 days supply is considered excessive.

In that case, it’s time to offer customers some good deals to help sell vehicles and get inventory back on track again.

So, the key to knowing where to get the best deals depends on knowing which vehicles have more than a reasonable number of days supply., which can change from month to month but usually takes several months to change significantly, if it changes at all.

At the time of this writing, the following vehicle makes and models are in substantial over-supply situation, which means you can expect to get some good deals if any of these are the vehicle you want.


Predicting Future Best Car Deals

best car dealsAs any reader of this web site knows, new car incentives come and go, month to month. A particular car make and model can have great incentives one month and none the next.

So what is going on that makes it work like this? Can we somehow predict when good incentives will be offered, and on what brands and models?

Yes, we can, with some degree of accuracy, predict car deals in the near future. However, we can’t say exactly how good the deals will be.

We base our predictions on what the car industry calls “days supply.” When cars are built at the factories, there are expectations as to how fast those cars will sell at dealers. They like to have about 60 days of supply in the pipeline or on dealers’ lots to make sure they have enough to feed demand.

However, as it happens sometimes, sales don’t happen as fast as expected and supplies pile up — up to 90 or even 120 days supply.  Not good. Too many cars. The car companies must find a way to increase sales to reduce the over-supply problem. New incentives are often the answer. Make the deals attractive enough and sales will increase, which reduces supply. Problem solved.


Looking for Best Car Deals

great car dealsOn this web site we typically focus your attention on special promotional new-car offers each month which include rebates, bonuses, low-interest loans, and special lease deals. These are usually good deals that are well worth considering for anyone looking for a new car.

However, it is very possible to get great deals on other cars that don’t have advertised incentives, if certain conditions exist.

How? What conditions?

Let’s start with a little explanation.

Car manufacturers build cars in anticipation of customer demand in the coming months. Some months they build too many, and some months, too few. It’s when they build too many that it becomes a problem. In that case, cars are accumulated in the car maker’s shipping lots and on dealer’s sales lots.  Too many cars in inventory means something has to be done to sell them more quickly.


Best Deals Are On Best Cars

best car valueGetting a great deal on a not-so-great car is not really a great deal at all.

If a car is uncomfortable to drive, is not dependable, has lack-luster performance, or doesn’t fully meet the needs of the buyer, it’s not a good buy, regardless of what kind of bargain price is paid.

The best car deals are those that offer good “value.” That is, cars that provide the best combination of features, performance, driveability, safety, and comfort — for the least money. Some cars don’t offer much and are inexpensive, which is understandable. Others, such as many luxury models, offer a lot but also cost a lot, which is also understandable.

However, there are many other cars that provide most of what high-end cars offer, yet have relatively low prices. These cars have the best “value” and make the best deals overall.

Consumer Reports magazine publishes its Annual Auto Issue in April each year (on newsstands now, as of the time of this writing). They report the results of new-car testing and evaluations, as well as used-car reliability surveys. This magazine (and web site) is an essential tool for anyone thinking of buying a car.

The highest scoring new vehicles are those that have the best value. Let’s take a look at them now.


Five Steps to a New Car Deal

5 steps to new car dealMany of us know that the process of buying or leasing a new car, and getting a good deal, is often long, tiring, and stressful. And that’s just the part in the dealer’s store. Of the five steps we’ll discuss, four occur in the dealer’s place of business and can unnecessarily take hours of your life away, if you let it.

1. Research – This is the stage where you do your homework to determine the type or even the make and model of vehicle you want. You have many resources that can help. There are car company web sites, Consumer Reports magazine and website, car magazine web sites, and car owner web sites.

Then there are web sites such as Edmunds.com where you can not only find data about all car makes and models, but also get pricing information.

You should also go to local dealers and test drive the vehicles you think you might be interested in. Don’t take your checkbook, however, because it’s not time to buy just yet.

In this stage of the car buying or leasing process, you can (and should) take your time, and gather as much information as you can to make a smart decision. The more time you spend at this stage, the less time you’ll spend in the dealer’s office.


$0 Zero Down Car Leases Are Back 2017

zero down car leasesThis month there are just a few car makes and models with special car lease deals being offered with no money down. That’s $0 due at lease signing — not even the first month’s payment.

These are often called “sign and drive” leases. Lexus has all the no-money-down leases right now. Check this page often because zero down leases come and go frequently.

Most zero-down lease deals allow 12,000 miles per year with the exception of those from Lexus which allow 10,000 per year.

Actually, almost any car lease can be had with or without a down payment, but you may not be able to get special promotional deals without money down unless the deal specifically makes that offer. All the promotional deals listed below do make the offer. Making no down payment doesn’t change the value of the deal. However, since you are not pre-paying some of your financed lease amount, your payments will be a bit higher.

All of the deals listed here will end May 31, 2017. Here are the current (May 2017) $0 down sign-and-drive lease deals, listed in alphabetical order:

Car Leases Less Than $300 – 2017

lease deals less than 400There are over a hundred special lease deals for less than $300 a month offered every month from different car companies. In fact, of all promotional leases being offered by car manufacturers, the majority fall into the range of $200 – $299 a month.

These no-haggle deals are put together by combining a discounted vehicle price with a higher-than-normal lease-end residual value, and a low finance rate (money factor). The deals are usually only offered for one month, although month-to-month extensions are not uncommon.

Since customers can only negotiate price, but not residual and money factor, these deals are always better than could be independently negotiated for a normal lease.

Special lease offers from car manufacturers are genuinely excellent (often, outstanding) deals that are “subvented” (subsidized) by car companies and offered nationally through dealers for those companies. Not all of a car company’s vehicle models and styles will be offered with special leases during a given month. If a particular model or style is not included, dealers are not authorized to extend the offers to other vehicles.


Cheapest Car Lease Deals in 2017

cheap car leaseSome of the cheapest car leases we’ve seen in a while are now being offered by car manufacturers with special limited-time lease deals.

These are deals in which car companies are creating the lowest possible monthly payments by temporarily adjusting a combination of factors, such as price and finance rate, that affect payment amount.  Although a low lease payment doesn’t necessarily make it a good deal, all the deals we discuss here are actually excellent deals and are well worth considering.

Nearly all cheap leases require a down payment (cap cost reduction) as well as the first month’s payment and official fees. These up-front costs, all together, are called “cash due at signing.”  Most of the deals are for 24, 36, or 39 month terms and allow 1000 miles per month, average over the life of the lease.

Here are some of the cheapest car leases that are currently being offered by car companies through their authorized dealers:


Best Car Leases Under $200 in 2017

best car leasesThere are currently a surprising number of good car lease deals for less than $200 a month being offered during May 2017 by car companies and their dealers.

The good news is that the number of cheap lease deals has remained generally the same over the last few months, and promises to remain so, or become greater.

These are special limited-time lease offers with low payments of $199 or less that are based on discounted prices (lease cap cost), low finance rates (lease money factor), and high lease-end residual values. Most require a down payment, first month’s payment, and any official fees at time of lease signing.

There is no other way to get a brand new car for less than two hundred dollars a month than through these special manufacturer-offered lease deals. 

All the leases we list below are for brand new 2016 and 2017 vehicles, although usually only for a few models and only one style of each model. The deals also are good only for a limited time. Nearly all are for 24, 36, or 39 month terms and typically allow 1000 miles per month, although a few allow more or less. In some cases, there are additional loyalty bonuses and/or competitive trade-in bonuses that could lower the listed monthly payment.