There are quite a few options that drivers need to consider when they are looking into getting a new vehicle. What color do they want the vehicle to be? What kind of features do they want the vehicle to have? Should they buy or lease the new vehicle? That last one could actually be the most important one, because it could determine quite a bit about the future of your vehicles. Here are some of the pros and cons of buying vs leasing in Raleigh NC.
Buying a New Kia
One of the greatest benefits to buying a new vehicle is that you completely own it. That means you can do whatever you want to it. You can even sell it if you want to! You can paint racing stripes on it! This is one of the main reasons why people prefer buying, because then the vehicle is 100% theirs.
More Up Front Costs
Most likely when you are going to purchase a car you will need to get it financed. Since most people want to finance the least amount possible, the down payment that is paid when purchasing a vehicle is typically higher than leasing. There are also other fees you have to pay as a new owner such as registration fees.
Higher Monthly Payments
Since you are purchasing the vehicle and paying for its entire cost, the monthly payments for buying will be higher than they would be if you leased the vehicle. When you finance the vehicle there are also other charges such as interest and taxes that you need to pay for that will drive up monthly payments as well.
One restriction that people have when they lease a vehicle is that they can only drive a certain number of miles per year. Obviously, when you purchase the vehicle yourself you are free to drive it as much as you would like.
Leasing a Kia
When you lease a vehicle, you do not own it. That means that you cannot sell it whenever you would like, and cannot customize it in any way. It is, more or less, a long term loaner vehicle. Once the lease is up, the vehicle must be returned to the dealership.
Lower Up Front Costs
You will not have to pay as much up front when you lease a vehicle. In fact, in most cases you probably won't have to pay a down payment at all. The up front cost for leasing typically just includes the first month's payment, a security deposit, registration fee, and taxes.
Lower Monthly Payments
Since you are not paying for the entire vehicle and simply just a few years of its use, the monthly payments for leasing are often lower than they are for purchasing. This is because you aren't so much paying for using the vehicle as you are paying for how much the vehicle is depreciating in value during the time that you own it.
One of the biggest downsides to leasing is that there are often mileage limits on how far you can drive the vehicle. These typically fall between 10,000 to 15,000 miles per year. If you are someone who often goes on long drives, leasing may not be for you.
If you are interested in learning more about buying vs leasing in Raleigh NC, please get in touch with one of our Fred Anderson Kia sales professionals. We have a wide variety of new Kia vehicles here, and many of them are available for buying or leasing!