Buy vs Lease

Lease or Buy?

Buying or leasing a car is the first thing every car shopper has to decide.

Depending on factors such as budget goals, income, credit scores, driving habits, and individual preferences, there are many pros and cons to consider when it comes to leasing or buying. Don’t worry- the finance team at O’Brien Kia of Bloomington in Bloomington, Illinois can help you make that decision!

Ask yourself these questions: What do you want your monthly payments to be? What’s your annual driving mileage like? And do you get attached to your cars? Your answers to these questions will help give you an idea of what your priorities are, and which financing option is best for you. Read below for an in-depth look into your options, then get in touch with our Normal, IL area dealership with questions!

Buying

Buying a vehicle is a straightforward transaction where you commit to paying the cost and sales tax for the entire vehicle, with the goal of eventual complete vehicle ownership. If you finance your vehicle purchase with an auto loan, your monthly payments will be determined by the vehicle price, interest rate on the loan, and length of the loan. There may also be various other finance charges, such as registration and insurance costs. When you make the last payment on the loan, however, you’ll have complete ownership of your vehicle and the freedom to sell it or trade it in, add car accessories, or upgrade auto parts.

Benefits of Buying

• Full car ownership at the end of the loan
• No mileage limits or related driving fines
• Less worry about dents and maintaining vehicle condition
• Flexibility to customize or upgrade your vehicle

Leasing

When you opt for a Kia lease, you only pay for the portion of the vehicle you use throughout the lease, which usually lasts two or three years. Since you are not making payments based on the value of the car, your monthly payments will typically be lower than an auto loan. In a lease, there are often terms to follow, such as following a mileage limit, keeping the vehicle in good condition, and leasing for a fixed amount of months, so it is very important to read the lease agreement carefully. As with buying, there may also be various other charges and costs associated with leasing a car, such as insurance and termination fees. You can find the full lease disclaimers for Kia vehicles on our manufacturer’s incentives and offers page.

Benefits of Leasing

• Smaller (or no) down payment compared to an auto loan
• Drive the latest Kia models every few years
• Lower monthly payments and maintenance fees
• No long-term commitment- you have the flexibility to upgrade

Now that you know some of the basics between buying vs leasing, we recommend that you look at your budget, calculate your monthly payments, and determine which option best fits your life. Don’t have a vehicle in mind yet? Take a look through our new Kia inventory near Peoria, IL for a stellar selection of stylish and affordable new Kia cars and SUVs. Once you find a match, let our finance team at O’Brien Kia of Bloomington know whether you’re opting for an auto loan or a car lease. We will be happy to help you apply for financing or negotiate lease agreements. Have questions? Give us a call or stop by Bloomington, IL Kia dealership!