How to Decide Between Leasing and Financing a Kia

There’s no “one-size-fits-all” answer to whether leasing or financing is the better option for purchasing your next vehicle. Regardless of which you decide is the better option for you, there’s a vast selection of new and pre-owned cars waiting for you to discover at City Kia in Orlando. Whether you’re looking for the sporty performance and cutting-edge tech in the 290-horsepower Kia K5 GT or the seating space for 8 in the Telluride, there’s something on our lot you’ll find enticing.

Deciding whether to lease or finance your next sedan or crossover is as important a decision as choosing the right model. If you’re having trouble deciding which is right for you, this guide may have the answers you’re looking for.

On Leasing

Leases are an excellent option for drivers who want to have the latest and greatest new Kia. If you plan to trade in your vehicle after three years or so for a new one, leasing is an attractive option compared to financing or buying outright. When you lease a car, you save on upfront costs with a lower down payment, skipping sales tax, and have lower monthly payments compared to financing, because when you lease, you’re only paying for the depreciating value of the vehicle.

When the lease ends, you can either return the vehicle to the dealership or purchase it. Additionally, you’ll spend little to nothing on maintenance and upkeep work because the vehicle is new and covered by warranty. However, leases typically limit you to driving 10-15 thousand miles a year and don’t allow you to customize the vehicle, so if these things are dealbreakers for you, financing is a better option.

On Financing

The main appeal of financing your Kia is that you outright own the vehicle once you complete the monthly payments, so that means when it’s time to trade it in, you keep the full value of the sale. Additionally, if you finance a sedan or crossover, you don’t have to worry about mileage limitations and can freely customize your vehicle. Financing also gives drivers more flexibility with choosing insurance coverage, as some plans don’t cover leased vehicles, and you have some wiggle room with lower or higher monthly payments to accommodate how quickly you want to pay off the loan.

The downsides to financing, especially with new vehicles, include incurring the most significant value depreciation during the first few years of ownership, higher monthly payments, a larger down payment, and full responsibility for maintenance.

Find the Kia of Your Dreams at City Kia in Orlando

We’re here to help you find the right Kia at the right price at City Kia. Call ahead or stop by our dealership and let us put our experience to work for your benefit in your search for your next car.