Things you need to know about leasing a Kia and new car lease payments.
The biggest advantage of leasing a car from Kia is that you are not required to finance the entire cost of a vehicle.
You only pay for the specific period of time that you use the vehicle, often two or three years.
Even though it sounds like renting, the two concepts are different. Basic math skills is all that you need to identify the best car lease deals.
You should also consider these four factors:
- – Total upfront payment, including any down payment and fees
- – Amount of each monthly Kia lease payment
- – How many years the lease will last
- – Possible chargers you may incur at the end of the lease
How much will you have to pay
Your monthly lease payment is based on the difference between the vehicle’s MSRP and what the vehicle is expected to be worth at the end of the lease (residual value).
The difference is financed at an interest rate (which may be called a “lease charge,” “lease rate,” or “money factor”).
Typically, the down payment and lease payment will be lower with a leased vehicle than with a financed vehicle. This means that your money will go much further when you lease than when you buy.
There are also many auto lease specials that will let you drive off if you leave nothing more than the first month’s payment and a nominal security deposit.
However, some dealers will require a substantial down payment worth several thousand dollars.
You must speak with your Kia lease representative to be informed about current deals and offers.
Biggest factor that will affect your terms
Your credit score will affect your lease terms more than anything else. Those extremely attractive terms advertised on television are only available to customers with top-tier credit history.
Average credit means you’ll have to bring more money to the table for a down payment and/or swallow a larger monthly payment. You may as well not show up if you have poor credit.
Leasing often has more strict credit requirements than purchasing because the risk to the lessor is higher.
If you don’t abide by the terms of the agreement, the residual value of the automobile will be lower than estimated, thus the lessor will lose money when the vehicle is eventually sold.
What happens at the end of your lease?
When the lease period is over, all you have to do is return the vehicle to the dealer. You don’t have to worry about the hassle of a trade-in or selling it to a private party.
In addition, most auto leases will provide you with the option to buy the vehicle if you wish at a predetermined price.
This is an option to consider if you fell in love with your Kia, but understand you may end up paying more overall than if you just bought the car outright in the beginning.
Shop around for the best Kia car lease deals
It is wise to shop around for a Kia lease just as you would shop around for a purchase.
You may be able to lower your down payment and/or monthly payments by forcing dealers to fight for your business. Be sure to do the math when calculating your savings.
A lease featuring low monthly payments and a large down payment may cost more money overall than a lease with high monthly payments and no down payment.
You will also want to negotiate your allotted mileage. If you plan to do a lot of driving, you don’t want to get hit with a large fee for exceeding your free miles.