Should I buy or lease a new Kia?' Here are some things to consider!
At Liberty Kia we have a great selection of new Kia models, and when you choose to take one back to your home -Â perhaps in Spring Valley NY or Fair Lawn NJ - you get to decide whether you want to buy or lease. On this page, we'll break down the upsides and caveats to each style of ownership.
Mileage Restrictions
The most important thing to keep in mind if you're deciding to lease a vehicle is the mileage restrictions. When you lease you typically have a limit of 12,000-miles/year or 36,000-miles/total. If you go over the allotted amount, you can get hit with costly overage charges!
Now, if you commute in from Mahwah to Ramsey NJ for work, the trip will probably be well under 10-miles, meaning you won't put a lot on your odometer. On the flip side, if you have a big commute, travel a lot for work, or regularly visit family who lives far away, you might find the limitations too restrictive.
Short-Term Price
Let's say mileage isn't an issue for you and you can choose to either buy or lease. When you lease a vehicle, you have a lower monthly payment since you'll only have the vehicle for a few years, typically three. With buying you have a higher payment (sometimes nearly double the cost of a lease payment), and you will be paying down the entire amount. If you have a tight budget or simply want to save money, leasing can be a more attractive option. It's a good way to get new vehicle, work on your credit score, and not break the bank.
Long-Term Price
You've probably figured out that if you get into lease cycle after lease cycle, there will come a time where you've paid more than someone who has bought. If you are keen on being debt-free in the future, it is worthwhile - if the budget allows - to make larger payments for five or six years and then be payment-free. After you've paid off your vehicle, you can put that money into savings, towards a renovation project on your Chestnut Ridge NY home, or you can start saving up for your next vehicle!
Personal Ownership Habits
Another thing to keep in mind when you're deciding to buy or lease is your personal ownership habits. What do we mean by that? Okay, think of it this way. Are you someone that has held onto your smartphone because 'it still works!' even though it's old and the camera isn't the best or are you someone that is always in line for the newest iPhone?
Neither is better or worse, but if you're someone who likes the latest and greatest then you'll probably love leasing because you get a new vehicle every few years. On the other hand, if having the newest thing isn't important, you'll likely prefer paying off that vehicle and driving it for ages, even if some of the things become dated.
Another important thing to keep in mind is that when you buy a vehicle you can customize it however you want, sell it, or even pass it down to a child. With a lease, there are restrictions on the parts and accessories you can add, and it must go back to the dealership.
Amenities
Some people like vehicle's that are jampacked with features, but the more amenities you have, the higher the price tag. Since leasing costs less per month than buying, the short-term "ownership" route can be a way to get into a higher-level vehicle that you might not be able to afford if you were buying.
Service Needs
Last, but not least, we'll touch on service and maintenance. Unlike luxury vehicles that are pricey to maintain, Kia repairs shouldn't break the bank, but they still come with a price tag. When you lease a vehicle it's in the agreement that you must keep up with the service schedule, though the services needed during the first three years of having a car are simple. Once the car gets older, the updates and necessary repairs start to get more expensive. If you want to avoid the potential headache of an older car, go with leasing!
These are just a few things to consider as you're trying to decide if buying or leasing is right for you. If you're still on the fence you can come into our dealership to meet with our finance team to go over the options and ask us questions. We want you to be confident with your vehicle purchase, and we'll help you make the best choice!