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Want to keep your car payment under $200 per month? You've got options

2014 Ford Fiesta sedan

Ford

The $200-and-month car? Forget it. The gold standard of affordability has hit a new low – the $153-a-month car.

That's the bare-bones lease payment possible on a 2014 Kia Rio sedan or 2014 Honda Fit. So a new high in low (payments) is here and available to car shoppers who do not have a single penny to slap down on a lease.

You can find many ways to explain Canada's hot new vehicle market – sales up 4.0 per cent in May and 1.9 per cent on the year – but a bubbling mix of cash discounts, low-interest offers and affordable sticker prices is right at the top of the list.

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The point being, the Fit and Rio are not exceptions; they are the rule. As an analysis of lease offers from Unhaggle.com shows, a lease payment of $174 a month on a Toyota Yaris is also possible thanks to a $1,200 factory incentive and a 0.90 per cent lease rate.

Fancy a Ford Fiesta? Well, a $178 a month lease payment is the product of a $2,500 factory offer and a 0.0 per cent lease rate for 48 months. Or how about a Hyundai Accent for $198 a month ($783 factory discount and 1.99 per cent lease rate)? In all cases, we are talking no-money-down lease deals.

This trend is likely to continue for some time to come, too. Why? Sticker prices are not going up, but down or at the very least remaining flat.

Take the new car with Canada's lowest sticker price, the 2014 Nissan Micra. If you can find a bare-bones Micra with the $9,998 base price – and word on the street is this particular version of the Micra is as rare as hen's teeth – the nothing-down lease payment comes in at $169 a month (based on a 5.59 per cent interest rate for five years).

And let's not forget that all these cars come with very good factory warranties and deliver excellent fuel economy. They're not fancy cars but you're covered if they break down and your running costs will be low. Now the question is, can prices get lower still?

Finally, while leasing is the route to the lowest monthly payment, most car shoppers purchase their vehicles. So Deals of the Week has, as usual, laid out four excellent purchase deals – along with the leasing offers. You'll find them below.

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Deals of the Week consulted with www.unhaggle.com, Car Help Canada, www.carcostcanada.com, and other sources on these offers. As usual, pricing information here is subject to change and dealer discounts vary, so consult your dealer for all the final details, including expiry dates for all offers.

kia 

2014 Kia Rio 4 door Sedan Man LX

  • MSRP: $13,995
  • Freight, dealer prep, air conditioning tax: $1,620
  • Dealer discount (estimated): $400
  • Factory discount: $2,918 (manufacturer incentive)
  • Taxable subtotal: $12,297
  • Total price with 13% HST: $13,895.61
  • A bare-bones monthly lease payment of $153 a month for 48 months is based on a 0.90% lease rate, with $0 down, $1,620 in fees, and a combination of factory and dealer discounts.

2014 Ford Fiesta sedan Ford Ford  

2014 Ford Fiesta 4 door Sedan S Manual

  • MSRP: $14,499
  • Freight, dealer prep and air conditioning tax: $1,700
  • Dealer discount (estimated): $450
  • Factory discount: $2,500 (manufacturer incentive)
  • Taxable subtotal: $13,249
  • Total price with 13% HST: $14,971.37
  • A bare-bones monthly lease payment of $178 a month for 48 months is based on a 0.00% lease rate, with $0 down, $1,700 in fees, and a combination of factory and dealer discounts.

Sub-compact Car: Honda Fit Honda Honda  

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2014 Honda Fit DX Manual

  • MSRP: $14,635
  • Freight, dealer prep, AC tax: $1,630
  • Dealer discount (estimated): $350
  • Factory discount: $1,000 (manufacturer incentive)
  • Taxable subtotal: $14,915
  • Total price with 13% HST: $16,853.95
  • A bare-bones monthly lease payment of $153 a month for 60 months is based on a 0.99% lease rate, with $0 down, $1,630 in fees, and a combination of factory and dealer discounts.

2014 Toyota Yaris CE 3 door hatchback manual

  • MSRP: $14,255
  • Freight, PDI, AC tax: $1,630
  • Dealer discount (estimated): $300
  • Factory discount: $1,000 (manufacturer incentive)
  • Taxable subtotal: $14,585
  • Total price with 13% HST: $16,481.05
  • A bare-bones monthly lease payment of $174 a month for 60 months is based on a 0.90% lease rate, with $0 down, $1,630 in fees, and a combination of factory and dealer discounts.

Pricing information source: unhaggle.com and carcostcanada.com. Calculations based on Ontario customers. Please note that while the information above is accurate at the time of publication, incentives are given at the discretion of individual dealers, and may be changed or discontinued at any time. Where noted, "dealer discounts" are negotiated with the customer on a case-by-case basis. Unhaggle Savings are actual discounts received by Unhaggle customers.

If you have questions about driving or car maintenance, please contact our experts at globedrive@globeandmail.com.

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About the Author
Senior writer, Globe Drive

In 25 years of covering the auto industry, Jeremy Cato has won more than two-dozen awards, including three times being named automotive journalist of the year. Jeremy was born in Montreal and grew up in the San Francisco Bay Area. More

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