A common question shoppers ask themselves when considering a new vehicle purchase is should I buy or lease a car? There are pros and cons to both options and ultimately it comes to down to several factors including budget, driving needs, and how long you plan to own the vehicle. Even though it can prove to be advantageous, leasing is often misunderstood so below we will outline some of the key differences between the two buying options allowing you to better determine which one is going to fit your lifestyle the best. The professional finance advisors at Greenway Kia of Hickory Hollow are also available to answer any of your questions and help you secure the best possible buying scenario.
|Ownership||Purchasing the car makes ownership very simple. You own the car and can keep it as long as you like. You're free to make any customizations and you don't have to worry about any excessive wear or tear except for considering future resale value.||You do not own a lease vehicle. You must return it at the end of the term so customizations should be carefully considered and additional charges could be applicable for extra wear and tear.|
|Monthly Payments||Generally you'll see higher monthly payments when buying because you're paying off the full price of the vehicle plus interest and taxes on the full amout.||Leases offer lower payments because you're only paying a portion of the vehicle price determined by the length of your term and the residual. You're also paying interest and taxes on a smaller amount.|
|Early Termination||You can sell your vehicle or trade it in at anytime making this a potentially safer option for shoppers who might have to return it before the term is over.||There are early-termination charges for leases that can make this option less ideal depending on how close you are to the end of your term. The dealer may also choose to purchase the car like a trade-in|
|Mileage / Future Value||You have no restrictions on mileage but the vehicle will depreciate. It's future cash value is yours to do with you as you wish||The mileage limit will be determined at the beginning of your lease and there are fees for exceeding it. However, you are unaffected by any depreciation or the future value of the car|
|Vehicle Return / End of Term||At the end of the term you have no further payments but will have to deal with selling the car or trading it in once you decide you want a different one.||At the end of term you can simply pay any end of lease costs and walk away. You also have the option to buy out the remainder of the loan if you wish to keep the car.|
If you like the idea of driving a brand new car every 2 or 3 years with lower monthly payments and the latest technology/features under warranty then a lease is likely going to be more appealing for you. You'll be a prime candidate if you also have a stable and predictable lifestyle, you drive an average amount of miles, and you don't like the idea of having to trade or sell your vehicle privately. If you like the feeling of being payment free and want to own your car for a long period of time with freedom to customize it as you like then you'll prefer to purchase it. You'll enjoy complete ownership of your car without having to worry about miles, wear and tear, or possible lifestyle changes. Regardless of whether you choose buying or leasing you'll get the best deals and the friendliest service at Universal Kia. Visit us today at 5406 Target Dr, Antioch, TN 37013