It may be hard to believe, but it is possible to lease a car for under $100 a month. You may have to fork over a ton of cash upfront, but there are options for those looking for a brag-worthy lease deal with an extremely low payment.
Based on our analysis, lease incentives like this tend to be advertised at the dealer level rather than by a car manufacturer. Sadly, an inventory shortage has resulted in the virtual elimination of new car leases under $100 a month.
Having said that, they also often feature shorter 24-month lease terms designed to take advantage of higher residual values.
Apart from the potential to end up paying more than expected, shoppers should watch out for discounts that they may not be eligible for. Be sure to also ask if the first payment is factored into the price since it will impact the final cost.
As previously mentioned, it's becoming increasingly difficult to find sub-$100 leases these days, but here are a couple of examples we managed to scrounge up from across the nation.
Leases Under $100/Month
2023 Kia Forte: $99 per month for 36 months
A Kia dealer in eastern Pennsylvania is currently offering the 2023 Kia Forte for just $99 per month for 36 months. That sounds too good to be true because frankly, it is. Performance Kia in Moosic, PA is offering the 2023 Forte LXS for $99 a month, but with a ghastly $8,999 due at signing.
The effective monthly cost works out to a ghastly $349. The dealership didn't outline an MSRP in the lease's fine print, but given that the Forte LXS carries a $21,315 starting price, that is far from a good deal.
2023 Forte inventory is rather low these days, but Kia is still advertising a $229 lease deal with $2,799 due at signing over 36 months. The factory Forte lease deal sports an effective monthly cost of $307, which isn't all that great of a deal but is still significantly more appealing than the $99 option.
You'll have much better luck finding a 2024 Forte, which is currently available for just $10 more at $239 a month over 39 months with the same $2,799 due at signing. Again, its $317 effective monthly cost falls short of a great value, but it's still far better than the $99 deal.
2023 Volkswagen Jetta - $99 per month for 24 months
This might be a bit of a stretch since the last evidence of this offer being advertised is from October, and the 2023 Jetta availability is very limited. That being said, Vernon Volkswagen in Vernon, Connecticut was featuring a $99 lease deal on the 2023 pretty recently. They're offering the 2023 Jetta Sport for $99 a month over 24 months with $4,999 due at signing. The effective monthly cost works out to $307, which falls short of a good deal relative to the Jetta's $21,750 starting price.
Unlike the Kia, there's no factory lease offer to compare the $99 offer to, as VW hasn't offered a promotional Jetta lease deal in some time now. That being said, the $99 deal is relatively in line with what we see from Volkswagen, albeit that just means that VW's lease offers haven't been that great lately. It's also worth noting that the Vernon deal only has a mileage allowance of 7,500, whereas most other deals you'll find will have 10,000-mile allowances.
While the Vernon deal isn't egregious, you're better off reaching out to your dealer to see if you can find a more competitive deal on the more readily available 2024 Jetta. While that's in part due to the 2023 Jetta's dwindling availability, $99 leases in general sound a lot better in theory than they are. If you're lucky enough to find one, chances are it will either carry an abnormally high amount due at signing or some other catch that renders it less attractive than a "normal" lease.
Explore This Month's Top Lease Deals
FAQs
It may be hard to believe, but it is possible to lease a car for under $100 a month. You may have to fork over a ton of cash upfront, but there are options for those looking for a brag-worthy lease deal with an extremely low payment.
What is the 1 rule in car leasing? ›
When researching the different aspects of a lease deal, you'll come across the “one percent rule.” This method is intended to be used for a 36 month lease and 12,000 mileage allowance and divides the monthly payment you will be making for the lease (without taxes) by the MSRP. A good lease deal will be 1% or lower.
How much of your monthly income should go to car lease? ›
According to our research, you shouldn't spend more than 10% to 15% of your net monthly income on car payments. Your total vehicle costs, including loan payments and insurance, should total no more than 20%.
What is the catch to leasing a car? ›
When leasing a car, you are typically paying for the car's lost value over the term of the agreement, plus a set of fees. Lease contracts can be complex. To find a good deal, study your contract carefully and ask questions about anything you don't understand.
Is $500 dollars a month a lot for a car? ›
According to Experian's third-quarter automotive finance report, drivers are spending over $700 and $500 each month for new and used vehicles, respectively. Insurance costs an average of $2,014 per year, according to Bankrate data.
What is a realistic monthly car payment? ›
The average monthly car payment is $738 for new cars and $532 for used. Several factors determine your payment.
How to spot a good lease deal? ›
Low Fees and Interest Rates
If your dealer is offering competitive interest rates - often referred to as the money factor or lease factor during lease negotiations - it's a good way to go. Likewise, minimal added fees during the negotiation of the contract are a good sign.
What is the 90% lease rule? ›
the lease must contain a bargain purchase option for a price less than the market value of an asset. the lessee must gain ownership at the end of the lease period. the present value of lease payments must be greater than 90% of the asset's market value.
Should you put a lot down on a car lease? ›
If you aren't required to make a down payment on a lease, you generally shouldn't. The No. 1 thing to keep in mind is that putting money down on a lease doesn't lower the overall cost to save you money in the long run as it does with a car loan.
Is it financially smart to lease a car? ›
In the short term, it's generally cheaper to lease a car due to less stringent down payment requirements, lower monthly payments and minimal maintenance and repair costs. In the long run, however, you may be able to save more by buying a car because you'll retain all the equity you build as you pay down the loan.
on the price of a car. is not to exceed 35% of your gross income. That means if you make $40,000 a year, the cars price should not exceed $14,000. If you make $80,000, the cars price should be below $28,000. And at 150 k salary, that means your max car price should be 50 2500.
What is considered a high car payment? ›
According to experts, a car payment is too high if the car payment is more than 30% of your total income. Remember, the car payment isn't your only car expense! Make sure to consider fuel and maintenance expenses. Make sure your car payment does not exceed 15%-20% of your total income.
Why shouldn't you put money down on a lease? ›
Conventional wisdom suggests that putting money down on a car loan can help reduce the interest you pay over the life of the loan. However, you don't own anything at the end of a lease, so your down payment doesn't go toward building equity in the car.
What month is the best month to lease a car? ›
Most new models are introduced between July and October, so this is the time that you should try to lease to maximize your savings. 2) Holidays: Lease shoppers can find special dealership incentives during long holiday weekends, including President's Day, Memorial Day, July 4, Labor Day, and Thanksgiving.
Why is it a waste of money to lease a car? ›
Additionally, leased vehicles don't typically retain equity when you lease, what you owe on the car only catches up to its value at the end of a lease. This could be viewed as a waste of money by some since you're not in an equity position at lease end.
Which car is $150 per month? ›
The Bajaj Qute vehicle has gone viral in Mzansi over the past week with many sharing memes about its size and supposed price of R150 per month. The Qute is, in fact, a quadricycle with a retail price of R75,000. It weighs 481kgs with a maximum speed of 70km per hour.
How much is a $20,000 car loan for 5 years? ›
A $20,000 loan at 5% for 60 months (5 years) will cost you a total of $22,645.48, whereas the same loan at 3% will cost you $21,562.43. That's a savings of $1,083.05. That same wise shopper will look not only at the interest rate but also the length of the loan.
How much is a $40,000 car loan payment 84 months? ›
For example, a car buyer considering a $40,000 new car loan with an 84-month term at 9% APR would have a monthly car payment of about $623 and pay $12,369 in interest over the seven-year loan.
