Kia Forte: $140/mo Cheaper To Lease Than Chevy Cruze

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Senior Pricing Analyst

Alex Bernstein is the Senior Pricing Analyst for CarsDirect.com. Each month he studies immense volumes of pricing and incentives data in search of trends that are useful to car shoppers. In the process, he often breaks industry news stories -- his analyses and insights have been featured on websites such as Automotive News, The Detroit News, Autoblog, The Truth About Cars and The Car Connection.

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, Senior Pricing Analyst - October 26, 2017

The Kia Forte ranks as one of the cheapest cars to lease based on our analysis of over 600 offers in October. Although there are many cars with payments of $199 or less, it's one of only two models with an effective cost under $200.

In contrast, the Chevy Cruze is an absolute ghoul if you're looking to lease. Both may be in a similar price class when it comes to MSRP, but leasing a Forte will save you up to $140/month compared to the Cruze.

Here's a look at why that's the case.

Sub-$200 Battle

The 2017 Kia Forte LX sedan is listed at $139 for 36 months with $1,999 due at signing. It comes with an allowance of 12,000 miles per year and has an MSRP of $18,495.

Effective Cost: $195/month

The 2017 Chevy Cruze LT sedan leases from $189 for 24 months with $3,499 at signing. It comes with 10,000 miles of driving per year and has a sticker price of $22,325.

Effective Cost: $335/month

That's a difference of $140 (per month!). So why the big gap in price?

Bulletins show the Cruze includes $1,000 in factory lease cash, a particularly low amount for this class. The 24-month lease is unusual, but we suspect GM is only using it to benefit from the higher residual value of 61% (versus 53% with a 36-month lease) in conjunction with an APR rate of 1.25%.

The Forte, on the other hand, features a whopping $4,500 in lease cash, the most we've seen to date on this model. The big discount is helping offset a fairly lackluster 45% residual and money factor of 0.00107, which basically equates to an APR rate of 2.6%.

So why does the Cruze have such a terrible lease? We think the reason has to do with the fact that GM is focused on promotions for buying at the moment. Through October 31, there's a "20% Off MSRP" deal that the automaker says can equate to as much as $5,479 in savings.

If you'd prefer to lease, be sure to consider the Forte. Based on our monthly analysis, it was one of only 2 cars together with the Volkswagen Jetta to have an effective cost under $200. Now that the 2018 Forte is arriving, it's a perfect time to snag a 2017 model and get a great deal.

See All Top-Ranked Leases »

, Senior Pricing Analyst

Alex Bernstein is the Senior Pricing Analyst for CarsDirect.com. Each month he studies immense volumes of pricing and incentives data in search of trends that are useful to car shoppers. In the process, he often breaks industry news stories -- his analyses and insights have been featured on websites such as Automotive News, The Detroit News, Autoblog, The Truth About Cars and The Car Connection.

Follow On: Google+ | Website