Here are five auto lease deals under $199 a month in September

Photo (c) Maskot - Getty Images

But the initial upfront payments make some of them less attractive

New car prices are still near record highs and interest rates continue to rise, making the purchase of a new car increasingly expensive. But it turns out there are five lease deals this month with monthly payments at or below $199 a month.

Automotive publisher Edmunds dug up the deals but notes these vehicles are not the most popular with consumers, which is why they are priced the way they are. Some require large initial payments, which must be considered along with the low monthly payment.

Let’s start with two Buick Encore models – the Encore and the Encore GX. They both list for about the same – just over $27,000. However, the Edmunds editors favor the GX over the Encore for its “sprightly acceleration, competent handling, and a robust list of tech features.”

Both small SUVs have $199 monthly payments but aren’t the values they might first appear. Both are 24-month leases and require upfront payments of over $5,600. When factored into the total cost, that $199 monthly payment is more like $432.

The 2022 Chevrolet Trax is also a 24-month lease but has a slightly lower initial payment – $4,319. The downside? The Edmunds editors say the Trax is small and practical, “but it's also slow and it doesn't have the best ride.”

36-month leases are more affordable

The 2022 Hyundai Venue may be the most attractive lease deal available in September. It's Hyundai's smallest SUV and the Edmunds reviewers say the Venue, “packs a lot into a very compact package.”

The MSRP is $20,295 but the lease carries a monthly payment of just $169 a month for 36 months. Even when adding in the $3,200 due at signing, the monthly cost is only $257.

The last vehicle on the list is the only sedan, the Hyundai Elantra. With an MSRP of just over $21,000 the Elantra lease is for 36 months and a monthly payment of $199 – $287 when the $3,200 upfront cost is considered.

The Elantra choice is a popular one with the Edmunds editors, who say that it “stands out with its high fuel economy, impressive technology and safety features, and roomy cabin.”

Things to consider

All of the lease deals end at the end of the month or early October. Keep in mind that these deals are not available in every state so car shoppers should make sure dealers in their states will honor them. Consumers leasing a vehicle in this environment should be mindful of one other thing.

The “residual” value of the vehicle, what it can be purchased for at the end of the lease, has never been higher because of the current high market value of used cars. Chances are, at the end of the lease the market will be back to normal and the vehicle will be worth less than its residual value.

Anyone leasing a car now should be prepared to turn it back in at the end of the lease, taking good care of it and staying under the mileage limit.

Quick and easy. Get matched with an Auto Warranty partner.