Leasing or Financing? Which Is Better?
Leasing or Financing a Vehicle - Which is the Better Option?
If you are considering a new vehicle, you have a choice of leasing or buying. For some, it is a matter of money and for others, it is an emotional connection. Before making a decision, here is a look at the key differences between leasing vs. financing a Kia.
What Leasing Is All About
- Leasing a vehicle means that you are renting it from the dealer for a set period. Leases usually run 3 - 4 years.
- Once your lease period is up, you can return the vehicle or get a new one. You also have the choice of buying it at a set price, which is mentioned in your lease agreement. The monthly payment on a lease is lower than that of a loan.
- You don't have any equity in the vehicle or ownership.
- Lease payments take factors such as sale price, lease period and the number of miles you can drive. If you drive more than the set mileage (10 or 15,000 miles per year), you will have to pay cash for the extra miles driven.
- You also have to pay taxes and fees, factored into the final lease price, which you pay for every month.
- Some Kia dealerships in LaGrange, GA may require a down payment even for a leased vehicle.
All About Car Financing
- Consumers have the option of getting financing from a bank or a dealership to buy their next vehicle. Before financing, do some research and check which lender offers the best terms. You can negotiate to get a good deal on the loan and the vehicle.
- The final amount you pay on the vehicle depends on the negotiated price of the vehicle, the interest rate which can be negotiated, and the length of the loan.
- You can get a vehicle loan for at long as 84 months. You then end up paying less per month but more in interest.
- Buyers have the option of getting financing at the Kia dealership near LaGrange, GA, Kia of LaGrange, as well. You will have to complete a credit application before getting a loan. Dealerships will check your credit report before deciding the terms and conditions.
- Ask the dealer what types of incentives and rebates are offered by the manufacturer. This will lower the price of the vehicle.
The decision of financing vs. leasing is tough and depends on an individual's financial situation. If you want to own a vehicle outright, then buying is the way to go. If you like to have a new car every couple of years and lower your monthly payments, leasing is the best option. Keep in mind that insurance premiums will be higher if you choose to lease. To buy, you will need a substantial amount to make a down payment. Leasing is not a good idea if you have to drive more than the set limit. Leasing is better in the short term but buying is better for you in the long run.
To know more, visit Kia of LaGrange in GA, located very close to Columbus, Hogansville, and Manchester.