Team KIA of El Cajon

GENERAL LEASING INFO FROM KIA.COM

Leasing generally offers the advantage of little or no down payment and low monthly payments. Leasing can allow you to drive a better-equipped vehicle than you might have been able to purchase using cash or credit. Leasing usually results in lower monthly payments than purchasing over the same term. Generally, leasing is a win-win for most drivers. The exceptions are those that want to keep their cars for a while or those that put a lot of miles on their vehicle each year.

A lease is actually a payment for the use of a vehicle over a specified period of time, rather than a purchase. Your payments cover the vehicle's depreciation over the term of the lease. Because this amount is usually much less than the full purchase price, the payments can be less. You (referred to as the "Lessee") agree to maintain the car during the lease and only put the number of miles specified in the lease agreement. At the end of the lease, you return the vehicle or may take advantage of the option to purchase it.

Is Leasing Right For Me?

Are you a driver that takes care of your car and puts between 12,000 and 15,000 miles on your car a year? If so, you might find that leasing makes good sense for you by offering lower payments and an opportunity to drive a new car every two to three years. On the other hand, if you put a high number of miles on your car (in excess of 20,000 miles per year) or tend to drive your car for 5 years or more before trading it in, leasing may not be the right option for your needs. Your Kia dealer is knowledgeable about both plans, and can provide you with specific details about the car you are interested in.

Advantages of Leasing

Lower Payments: With a lease, your monthly payments will almost always be lower than with conventional financing because you are paying for only a portion of the car's full value over the lease period. This gives you the option of driving a nicer car for the same monthly cost.

Manufacturer Incentives: In tough times or in a new model year, manufacturers may offer very attractive terms such as below market interest rates and high residuals that have the effect of lowering the monthly payment.

Lower Up-front Costs: Unless you decide to make a large cap reduction payment, initial costs for most leases will be limited to a refundable security deposit (typically one monthly payment rounded up to the nearest $25), sales tax depending on your state, title and registration fees, environmental fees (i.e., battery and tire disposal fees), and finally, your first monthly payment. As a result, leasing ties up less of your capital, freeing cash for more lucrative investments.

Taxes: With the phasing out of deductions for interest on car loans, leasing may now compare more favorably against conventional financing from a tax standpoint. Although most individuals will not save taxes with a lease, some businesses may enjoy certain advantages with leasing. Consult your tax advisor for more information.

Hassle-free Disposition: At the end of the lease you can simply give the car back to the dealer, satisfy your lease-end obligations, and walk away. No need to worry about selling the car or haggling over its trade-in value. If you decide to buy the car at the end of the lease, you'll have an idea how much the cost will be (no more than the residual value).

No major repairs: Kia new vehicles are covered by a factory warranty for the duration of your lease contract. However, regular maintenance is your financial responsibility. Some leases allow you to add this to your monthly payment so you will not have to pay for it later and in larger amounts. It is also helpful to have your maintenance done at a Kia dealership. They will keep a  record of your visits, which is excellent proof of your maintenance for the recovery of your security deposit.

We are always happy to assist you with the best possible purchase or lease option for your particular situation.  Use the contact form at the left of the page to contact us or call us at 888-326-5140.