Best Car to Lease Under 200 a Month 2015

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Jul 10, 2015, 12:26pm EDT |

Sizzling New-Car Lease Deals Under $200/Month

I write about how to maximize your automotive investment and more.

It seems like car shoppers can't catch a break these days. With new-car sales continuing to skyrocket, they're taking transaction prices along to the stratosphere. Kelley Blue Book says the average out-the-door price of a new vehicle reached $33,340 last month, which is up by 2.5 percent over the past year.

If there is any good news for cash-strapped consumers it involves new-car leasing. Leasing a car for a set period of time – usually two or three years – isn't for everyone, but with interest rates remaining low and resale values still relatively healthy, the deals are plentiful and affordable.

For those who may still be new to the game, vehicle leases are largely based on the difference between a car's transaction price and what it's predicted to be worth at the end of the term – called its residual value – financed at a given rate of interest (though automakers will sometimes offer cheap financing, a cash rebate or other incentive to lower the monthly payments for a given model).

Automakers love leasing as it brings new customers back to dealerships with clocklike regularity and helps dealers maintain an inventory of recent-model used cars. While leasing has traditionally been most prevalent among luxury brands, automakers in all market segments are now pushing cut-rate leases aggressively on a wider range of models than ever. As a result, leasing is at an all-time high. According to data compiled by Experian Automotive, 31.40 percent of all vehicles financed are now leased, which is up from around 20 percent of the market in 2011.

Experian says lease payments have dropped over the past 12 months from an average $412/month to $405. At that, we found a long list of some of the industry's most popular models leasing for a monthly charge of $200 or less, with equally affordable down payments under $2,000. These include midsize and compact cars, small crossovers and both a gas-saving hybrid and a fun-to-drive sporty car thrown in for good measure. They're affordable enough to acquire as third cars in a family's fleet or for college kids, to ensure they have a safe and reliable ride to get themselves to and from school.

In Pictures: Red-Hot Lease Deals Under $200/Month,

What' the best deal we found? Budget-minded urbanites can lease the easy-to-park two-seat Smart ForTwo coupe for monthly payments as low as $99/month. That's a little over three bucks a day, which is less than the cost of a tall coffee at Starbucks. We're featuring 18 of the best leasing deals with monthly payments under $200/month and down payments less than $2,000 in the accompanying slide show.

While the deals are hard to pass up, some drivers should still go the old-fashioned route and purchase/finance their rides. For starters, leasing guarantees you'll be making a perpetual car payment, though it also allows a lessee to simply walk away from the vehicle at the end of lease term. Think twice before leasing if you tend to be hard on a car or truck. Leased vehicles must be returned in excellent condition, otherwise you'll be assessed costly "excessive wear and tear" fees. Those with uncertain financial situations should be aware that it locks a lessee into payments for the full term with a contract that's difficult to break. And be sure not to enter into a lease that unduly limits your mileage – particularly if you have a distant daily commute or like to take long road trips – as it may cost you dearly down the road in additional mileage fees.

In Pictures: 18 Red-Hot Lease Deals Under $200/Month.

The Fine Print: Lease deals often vary by region depending on local inventory and demand for given models – check manufacturers' websites for the best deals available locally. Monthly lease payments quoted in our list of top deals are generally for 2015 models in base trim levels with additional equipment indicated, and do not include any additional options, taxes or registration fees. Cash due at signing includes the down payment and first month's lease payment. Dealer participation may vary. Check the automakers' and local dealers' websites for additional deals and details.