Many people don’t have the cash to buy a vehicle at the full sales price, which is why dealerships offer other purchasing options like auto loans and vehicle leases. For some drivers, it can be tough to decide whether to buy or lease a vehicle. Before you visit your Kia dealer, check out a few things to consider when you are determining your financial strategy.
1. Length of Finance Contract
In general, it might be a better idea to lease a car if you want a short-term finance contract, or you only want to drive the current Kia model for a couple of years. On the other hand, buying a car with an auto loan will have a longer contract term.
2. Monthly Payment
For many drivers, the estimated monthly payment is a major deciding factor. When you purchase a car with an auto loan, the amount of your monthly payment is calculated based on the price of the vehicle, the amount you put down for your down payment, the trade-in value you used during negotiations, the interest rate of the loan, and the length of the auto loan. Auto loan monthly payments tend to be a bit higher.
The monthly payment for a lease might be a bit lower. When you are leasing a car, you are only paying for part of the value of the Kia for the length of your lease term. In other words, you aren’t paying for the full price of the car. When you lease a car, you may not need to put down a down payment.
3. Mileage
If you’re a commuter or a road tripper, then buying a car is a better choice. When you lease a vehicle, you agree to certain mileage limitations, and you will have to pay for additional miles at the end of your contract. If you buy a car, you don’t have to worry about mileage limitations at all.
Can Your Kia Dealer Help You Decide to Buy or Lease?
If you still aren’t sure whether to lease or buy a new car, your dealership can help you out. The expert finance staff at the dealership can help you sort through the pros and cons of each financing option, walk you through lease and auto loan terms, and much more. Additionally, the finance team can help you secure auto financing even if you have less-than-perfect credit.
If you’re ready to drive a new car, you will have to decide which financing strategy is most appropriate for your budget. Fortunately, both Kia car loans and Kia car leases can offer generous terms. Want to learn more about your financing options? Contact Superior Kia today.
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