About $250 a Month

Cheap Cars for $250 a Month

By ROBIN AGUILAR

We wish we could find cheap cars costing $250 total, but figured we might see pigs fly before that happens. Now don't worry, we aren't going to show you beaters or rust buckets from a sleazy used car dealer, nobody said cheap cars have to be used cars. Savvy shoppers are looking for cheap new cars these days that offer affordable monthly payments and we thought $250 was a nice number. This kind of monthly payment means you can afford other things cheap cars need ... like those obscene gas prices.

So how did we hit the $250 a month mark, you ask? First of all, we're interested in cheap cars, meaning "affordably priced cars," not ones that are cheap in quality. Our top picks are the best of both worlds, offering the most bang for your buck. We assumed that no one wants to commute in a golf cart, so we based our choices on cheap cars that have the basics: automatic transmission, AM/FM stereo with CD player, air conditioning and antilock brakes. Next, we used the 60-month new car loan average APR (compiled by Bankrate.com) as of Aug. 10, 2007 of 6.96%. Our monthly payment calculation assumed that you don't have cheap cars of your own to trade-in, are putting 10% down on your cheap new car and will buy the car for $500 over invoice for good measure. The winners are as follows.

Toyota Yaris 2-Door Hatchback
$12,704* - $226/month || Get a Quote

When it comes to reliable cheap cars, the world's largest automaker has outdone itself with the Yaris. Already a smash hit in Europe, this second generation economy car is priced way below the other cheap cars on our list. Toyota bumped the less popular Echo for the Yaris, offering cheap cars enthusiasts a sporty look and fabulous gas mileage (40 mpg highway, 34 mpg city).

The Yaris boasts front wheel drive, an honest 1.5 liter engine with 106 horsepower, independent front suspension and four-way adjustable front seats. The Toyota Yaris wheelbase is quite long, offering a spacious interior, although legroom can be an issue for the super-tall. The trunk space isn't as large as other cheap cars on our list, but you won't have any problems loading or unloading with the Yaris' liftback. Interior controls are well placed, which makes you feel like you've driven the Yaris forever. There's nothing cheap about the fantastic Toyota Yaris, except the price. Well done Toyota!

Research More Toyota Models Here

See Accent Photos Here

Hyundai Accent 2-Door Hatchback GS
$13,581* - $241/month || Get a Quote

Gone are the days of Hyundai pushing less then stellar cheap cars. The Accent GS coupe, the latest addition to the Accent lineup, is sexy, sporty and offers customizing options that beg to be installed, which the other cheap cars on our list don't. Not to mention the Accent has impressive gas mileage, sporting 35 mpg highway and 32 mpg city. You'll find a 1.6-liter double overhead-cam engine with valve timing, 110 horsepower and eight-way adjustable driver's seat. The Accent GS interior is quite impressive, with a logical wraparound dashboard, offers a wider view of the road and isn’t that much smaller than the sedan. The cargo room, comparable with other cheap cars on this list, increases dramatically when you fold the back seats down. The Accent GS is an incredible leap forward for Hyundai, and an outstanding runner-up in our cheap cars affordability index.

See Aveo Photos Here

Research More Hyundai Models Here

Chevy Aveo 5 LS 4-Door Hatchback
$13,724* - $244/month || Get a Quote

Levelheaded transportation, fun aerodynamic styling and affordable sticker price, place the redesigned Chevy Aveo 5 LS squarely in the number three position of our top cheap cars listposition. The Aveo 5 LS takes the affordable car prize for comfort with its height adjustable driver's seat, noteworthy rear legroom and clean interior layout. Trunk space is competitive in its class, which can be enlarged with the 60/40 split fold-down rear seat. The Chevy Aveo 5 LS rivals others in this cheap cars this list with a front wheel drive 1.6-liter four-cylinder engine, despite only 103 horsepower. Fortunately, cheap cars that are small in stature equal fuel efficiency, with the Aveo 5 LS weighing in at 37 mpg highway and 27 mpg city.

See Versa Photos Here

Research More Chevy Models Here

Nissan Versa 4-Door Hatchback
$14,226* - $253/month || Get a Quote

The smallest vehicle you'll find on the Nissan showroom floor, the nimble Versa sports the most powerful engine in this cheap cars list: 1.8-liter four-cylinder engine with 122 horsepower. Brand-new for 2007, the Nissan Versa is creating quite a buzz as the offshoot from the Nissan-Renault relationship. The gas mileage is a respectable 34 mpg highway and 30 mpg city, and electric power steering makes parking a breeze. The Versa is making a name for itself both with cameos in hit Hollywood television series, as well as impressive rear legroom, which is best in its class at 38 inches. In addition to a powerful engine, the Nissan Versa sports the largest cargo space in our top picks of cheap cars. Fold down the rear seats, and you've got almost three times as much space thanks to thoughtful rear suspension design. As far as cheap cars go, the Nissan Versa is a fantastic bet, and well worth the extra $3 bucks a month.

See Rio Photos Here

Research More Nissan Models Here

Kia Rio LX 4-Door Sedan
$14,292* - $254/month || Get a Quote

The first sedan in our cheap cars lineup, the Kia Rio, the first sedan in our lineup, rounds out our top picks for cheap cars in the $250 monthly payment range. Yes, we know it's over the $250 mark, but if you've got a small family in tow, the Kia Rio delivers both fuel efficiency (35 mpg highway, 32 mpg city) as well as decent engine (1.6-liter, four-cylinder variable valve timing, with 110 horsepower). Great for keeping up with the busy soccer schedule. Did we mention the standard six airbags? The Rio beats other cheap cars on our list in handling, is comparable in cargo space (seats up and seats down) and even beats the Honda Civic and Toyota Corolla in total passenger space. Not bad for a subcompact. The liberal five year/60,000 mile warranty make the Kia Rio LX a fantastic buy in the cheap cars market.

Research More Kia Models Here

Find out what to look out for when buying these affordable cars by reading 'How Dealers Get You to Pay More' and arming yourself with valuable buying knowledge.

*Assumed purchase price based on our assumptions and options: 60 month loan @ 6.96% APR based on Bankrate national average as of 8/06/07, 10% down payment , final sale price of $500 over invoice, no trade in, excludes taxes, tags and title fees.

Ellen Buermeyer also contributed to this article.