Boucher Kia Official Blog
Should I Lease or Finance a New Vehicle?
By Product Expert | Posted in General Information on Tuesday, November 20th, 2018 at 10:11 am
Benefits of Leasing a Car in Racine, Wisconsin
Whether you’re just gathering information or have been going on four test drives a week, the car-buying process is one that’s chock-full of information. This information can be overwhelming for many as both automotive manufacturers and dealerships compete for the attention of prospective shoppers.
During this search, you’ve probably heard a lot of information specifically about the vehicles you’ve been considering (all of it, we hope, accurate). One area that tends to become a blind spot for drivers is their options for taking the vehicle home. Following a test drive, many automotive salespeople will simply push a monthly payment rather than running through what’s included in that payment.
At Boucher Kia, we believe in empowering drivers to make decisions by providing accurate and transparent information. When you sell vehicles with the dependability and value of Kia vehicles, it’s easy to be honest about them.
Should I Lease or Buy?
One of the questions we frequently field is “Should I lease or buy my car?” Before we go into the benefits of each, let’s get on the same page by clarifying what we mean by leasing a car. Leasing a car is a practice in which a driver pays monthly payments on the estimated depreciation of a vehicle over a set period. As depreciation in value occurs with the passage of time and use of the vehicle, lease agreements usually have two components – a duration and a mileage limit.
A standard lease will likely see a vehicle driven for 3 years with anywhere from 8,000 – 12,000 miles allowed per year.
>>>> Read More: Where to Trade-In Kia Lease in Racine, Wisconsin <<<<
Now that that’s cleared up, let’s look at the pros and cons of leasing vs. financing:
Leasing Pros and Cons
Leasing pros:
- Affordability – Typically monthly payments are lower than financing payments.
- New vehicle every few years – Trade in your lease to upgrade your ride when it’s up.
- Warranty coverage – With leasing, you have manufacturer coverage for deficiencies. Sometimes, scheduled maintenance is included or reduced in price as well.
Leasing cons:
- Mileage limits – With mileage being limited, road-trippers may find leasing to stretch their usage.
- You don’t own the car – Thinking about a full RWD conversion or 1970s shag re-carpeting? Think again. With a lease, you’re limited in modifications and must keep the car properly maintained.
Financing Pros and Cons
Financing pros:
- You own the car – Even while making payments on a financed car, you own it. During this time, you can modify the car how you’d like and drive it as many miles as you wish.
- Payments will end – Unlike leasing, financing a car has an end date at which point you no longer must make payments on the vehicle. At that point, it’s yours and requires only maintenance, registration and fuel costs.
- You can sell the car – Because it belongs to you, you’re able to sell or trade-in the car. Granted, some financing agreements will prohibit this for a period. Once that has passed, however, the car is yours to trade-in or sell.
Financing cons:
- No new vehicle every few years – By financing your car, you’re buying it. Unlike a lease, you probably won’t be able to simply swap it for a new model after two or three years without incurring negative equity.
- You’re on the hook for maintenance – Once the manufacturer warranty ends, any repairs or deficiencies are up to you to resolve. With Kia, their industry-best 10-year/100,000-mile warranty will keep you covered for longer than you’ll likely own the vehicle, however.
Why Leasing Makes Sense in Racine, Wisconsin
We know that not all solutions are right for everybody. That said, a decision to lease your vehicle goes a bit further in Southeast Wisconsin that it would other places. By leasing your vehicle here, you’re ensuring that the latest and greatest technology Kia, with which Kia is constantly updating their lineup, can be yours when it releases or shortly after.
>>>> See Kia Lease and Finance Deals in Racine, Wisconsin <<<<
Beyond that, however, the mileage limits tend to be much easier to stay within in our region that sees limited travel during the cold and snowy months of winter.
The lower monthly payment goes further with a Kia lease in our area, as well, allowing you to take advantage of all of the wonderful sights, events and to-dos that Southeast Wisconsin has.
If you have any questions about lease vs. financing pricing on a Kia model you’ve been eyeing, we’d love to help, contact us today for more information!
