KBB Identifies Best Vehicles to Fit Budget-Conscious Buyers

IRVINE, Calif. -

Dealers who are working with customers on tight budgets now have several vehicle lists assembled by Kelley Blue Book that analysts believe are best suited for a used-vehicle purchase or a new-model lease or purchase.

Of the vehicles KBB thinks can best fit the bill for any transaction this month, half are Japanese models with the remainder being a mix of domestic, Korean and German offerings.

What analysts say are the 10 most affordable vehicles to either lease, buy new or purchase used in June include:

—2012 Nissan Versa S Hatchback 4D
—2012 Hyundai Accent GLS Sedan 4D
—2012 Ford Fiesta SE Sedan 4D
—2012 Chevrolet Cruze/Cobalt LS Sedan 4D
—2012 Nissan Sentra SR Sedan 4D
—2012 Chevrolet Malibu LT Sedan 4D
—2012 Honda Civic LX Sedan 4D
—2012 Subaru Impreza 2.0i Sedan 4D
—2012 Honda Accord LX Sedan 4D
—2012 Volkswagen Jetta 2.5L SE Sedan 4D

If a lead came to the dealership lot or online through the store’s business development center and the consumer is interested in making a used-vehicle purchase, here are the units KBB contends could work best for a cost -conscious shopper:

—2011 Hyundai Accent GLS Sedan 4D
—2009 Honda Accord LX Sedan 4D
—2009 Honda Civic LX Sedan 4D
—2010 Chevrolet Cobalt LT Sedan 4D
—2011 Ford Fiesta SE Sedan 4D
—2008 Subaru Impreza 2.5i Sedan 4D
—2009 Volkswagen Jetta SE Sedan 4D
—2009 Chevrolet Malibu LT Sedan 4D
—2011 Nissan Sentra Sedan 4D
—2011 Nissan Versa S Hatchback 4D

For the instances where leasing a vehicle might be best for both the consumer and the dealer, KBB pinpointed which models could best make the deal happen this month:

—2012 Hyundai Accent GLS Sedan 4D
—2012 Honda Accord LX Sedan 4D
—2012 Honda Civic LX Sedan 4D
—2012 Chevrolet Cruze LS Sedan 4D
—2012 Ford Fiesta SE Sedan 4D
—2012 Subaru Impreza 2.0i Sedan 4D
—2012 Volkswagen Jetta 2.5L SE Sedan 4D
—2012 Chevrolet Malibu LT Sedan 4D
—2012 Nissan Sentra SR Sedan 4D
—2012 Nissan Versa S Hatchback 4D

And if despite home budget limitations, the potential buyer simply has to purchase a new model, posted below are the vehicles KBB insisted might be the best option:

Alec Gutierrez, senior market analyst of automotive insights for Kelley Blue Book, explained how he and the rest of the firm’s analyst team arrived at each vehicle list.

“First, we highlighted those vehicles with the most attractive lease offers and determined what it would cost to buy that same vehicle instead, taking into consideration any available incentives,” Gutierrez said. “To further aid shoppers we also identified the most recent used model-year vehicle that could be purchased within $50 of the rock bottom lease price. Among these vehicles, there are several instances where leasing or purchasing new is a better value buy than used.”

Gutierrez continued his commentary by mentioning some specific models.

“For instance, shoppers interested in the Nissan Versa, Hyundai Accent or Ford Fiesta would be best served buying the new model rather than leasing,” he pointed out. “Each of these vehicles can be purchased on a five-year note for only $30 to $40 more than the best available lease option. For only a few bucks more every month, a consumer could own these vehicle outright after five years rather than having to give it up with no equity at the end of their two- to three-year lease term.”

Gutierrez then turned his attention toward potential used-vehicle purchases as well as leasing.

“Those consumers willing to forgo that new-car smell and are open to a slightly used vehicle should take a look at the 2011 Nissan Sentra,” he emphasized. “A 2011 Nissan Sentra with 24,000 miles is mechanically identical to the brand new model, and since it can be purchased for only $34 more than a lease on a 2012, it makes an excellent choice.

“The remaining vehicles on the list make excellent lease candidates,” Gutierrez continued. “They all lease offers at least $100 more affordable per month than buying new and are significantly newer than the used version in the same price range.

“Typically cheaper than buying a new or used vehicle on a monthly basis, leasing allows consumers to drive more car than they can afford to buy,” he went on to say. “For those that want a brand new vehicle every two to three years that is always covered under warranty, leasing makes an excellent choice. A lease also allows consumers to mitigate shocks to the used-car market.

“Kelley Blue Book expects used-car values to steadily decline during the next few years and a lease is a great way to reduce exposure to declining values,” Gutierrez added. “The major downside to leasing is that at the end of the lease term, a consumer is typically left with little equity in their vehicle, if any, which is of little concern to those planning to jump into another lease.

“In the long run, it is always more affordable to buy a new or used car, and drive it until the wheels fall off. However, at the end of the day, there is nothing quite like driving off the lot in a brand new car,” Gutierrez concluded.