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Kia Leasing vs. Financing

Visit the Premier Kia Dealership in Cleveland

Car Loan & Leasing Options

When the time comes to get behind the wheel of a new Kia, you need to know what options are available to you. Are you looking for a long-term commitment or would you prefer to drive a newer model every few years? These are the questions you must ask yourself to determine whether leasing vs. financing is ideal for you. At Spitzer Kia Cleveland, we look at your new car options in Ohio. Whether you are interested in leasing a car or Kia financing, we can help you when you contact us today.

What is a Car Lease vs. Financing?

When you lease a Kia in Cleveland, you aren’t making any long-term commitments. Instead, you are agreeing to take care of the vehicle for a short time until it can be brought back in for a newer model. Flexible lease terms allow you to customize how many miles you are going to drive and how long you keep the vehicle. After a few years, you return the car and pick out a new one. It’s considered more of a rental agreement.

On the other hand, if you want to own a vehicle, financing will be a better choice. Over the loan term, you pay off the total cost of the vehicle until it becomes yours. With two viable options available, how can you determine which is the better choice: leasing vs. financing? When you lease or buy a car, it’s imperative that you consider your lifestyle and your budget. Both of these factors will help you decide the ideal option for your situation.

A dealership employee handing keys off to a customer

Advantages/Disadvantages of Leasing a Car

The biggest perk to choosing a lease is the lower cost. When you sign the paperwork, you will owe the first month’s payment, a minimal down payment, a refundable security deposit, and a few taxes or fees. Additionally, these will be the lowest monthly payments in the leasing vs. financing options. Your lease payments aren’t based on the total cost of the vehicle, so they can be much lower. On top of that, you don’t need to be worried about the future value of the vehicle, but you also can’t take advantage of any equity.

Lease agreements are only written on new cars. You won’t have the option to choose one of our certified pre-owned vehicles. Additionally, if you choose to end the agreement early with the leasing company, you will have early termination fees to pay. It’s important when you lease a Kia that it returns in the same condition it left it. Otherwise, you might have to pay for damages and repairs. You will also agree to a mileage limit each year. Exceeding this amount of driving will result in extra charges at the end of the lease. Kia leasing is a great option for anyone that wants to drive new vehicles on a regular basis and doesn’t plan on racking up a lot of miles.

Advantages/Disadvantages of Buying a Car

There’s another option with your leasing vs. financing situation. You could choose to buy the car and finance the cost. When you choose this route, you get to keep the vehicle and do whatever you want with it. You can make customizations and there’s no limit to when you can sell it. Additionally, you aren’t held to any mileage limits; drive as far and often as you desire.

On the other hand, buying a car is the more expensive option in the leasing vs. financing equation. When you work with Kia Motors Finance, you will have a larger down payment and monthly payments than the comparable lease agreement. Because you have to pay the total cost of the vehicle, you can expect to put out more each month. However, we have flexible interest rates and you can choose a longer-term to bring the price down significantly. While the vehicle does depreciate over time, you have complete control over what happens with the equity you build up. Keep the vehicle and drive it until it dies or sell it for a newer model after a few years.

Explore Your Options With Your Premier Kia Dealer

If you are having trouble deciding between leasing vs. financing, our team of professionals can help. First, we will work with you to find the Kia model that suits your needs. Once you test drive the car, we look at the differences between the lease and financing terms for the vehicle. You can choose a low-cost lease and enjoy the benefits of always having a new vehicle or opt for the long-term financing agreement to make that new Kia yours. At Spitzer Kia Cleveland, we have the options that suit your needs the best.Visit us in Ohio today.

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