Buy Vs. Lease New Kia: Which Is Better | Find Out

 

Should I Buy or Lease A New Kia?

When it comes down to buying or leasing a new car, the options can be confusing. On the one hand,  leasing a new Kia can help you maximize your budget. From this point of view, Kia lease drivers can enjoy a lower monthly payment, down payment, and better interest rates. On the other hand, however, financing a new car is a great way to build equity. According to this view, Kia drivers can enjoy the luxury of owning a brand new vehicle.

Buy Or Lease A New Kia: Pros & Cons

	Buying	Leasing
Ownership	Financing or purchasing a car with cash enables a driver to secure vehicle ownership and build equity.	The car lessee does not own the vehicle when the car lease expires. The car lessee does not have equity in the car to use towards the purchase of another vehicle. Vehicle leasing or car leasing is the leasing of a motor vehicle for a fixed period at an agreed amount of money for the lease.
Down Payment	New car financing requires a down payment. The down payment is the money you towards the purchase price of a car. It reduces the size of your loan. The down payment also impacts your auto financing rate.	New car lease agreements provide qualified lessee's with the option to pay zero down. In a car lease, a down payment is often called a capitalized cost reduction, or cap cost reduction. A car lease down payment does reduce your payments in the future.
Monthly Payment	Auto loan payments are higher than car lease payments. Auto loan payments require borrowers to pay the full purchase price of the vehicle plus interest, taxes, and fees.	Monthly car lease payments are typically lower than car loan payments. Car lease agreements only require car lessee's to pay for the vehicle depreciation during the lease term.
End of Term	At the end of the car loan term drivers can keep their vehicle and use it  as equity towards their next vehicle. At the end of the loan term drivers are relieved of making car payments.	At the end of the lease term, drivers must return their vehicle in pristine condition. Drivers have the option of leasing another vehicle or financing their recent vehicle.
Future Value	Auto loan borrowers lose vehicle equity whenever they purchase or finance a new vehicle.	New car lessee's are only responsible for paying the depreciation value of the vehicle and additional fees. New car lessee's do not have to worry about losing equity in a car lease.
Mileage	Car buyers do not have a mileage limit.	New car lessee's are limited to mileage terms agreed upon in their car lease agreement. Driver will incur an additional fee if they surpass their mileage limit.
Customizing	Car buyers can customize their vehicle.	New car lessee's can not customize their vehicle. If vehicle is not returned in pristine condition the car lessee will incur an additional fee.
Trade-in	Car buyers must find a used car buyer or used car trade-in dealer to get rid of their old used car.	New car lessee's do no have to worry about selling their used car. Car lessee's have the option of trading their old used car lease for a new car lease.
Warranty	Car buyers are only protected by the Kia warranty for a limited amount of time.	New car lessees can drive with confidence, knowing that the Kia warranty protects them. Most car leases end before the warranty expires