When to buy vs. lease a car

By Product Expert | Posted in FAQ, Tips & Tricks on Wednesday, February 28th, 2018 at 11:45 pm
Row of cars with the words buy vs. lease

The car shopping process is an exciting one. Whether you’re looking for a sporty sedan or a powerful crossover SUV, you’ll find an extensive selection of models to choose from at Moritz Kia. Here we make the entire shopping experience easy and straightforward with transparent pricing and a helpful team of experts to help you at every step of the way. Whether you choose to buy or lease, you can count on our team to work to connect you with the best financing options. With that said, what is the difference between buying vs. leasing a car and which is better? Here’s a closer look at how the two compare.

How much should your car payments be?

There are a number of things to consider when making the decision to buy or lease your next vehicle. First, it’s important to look at your budget. How much can you spend on monthly payments? The general rule is to make a down payment of at least 20% and not pay more than 10% of your gross income on car payments per month. When calculating these figures, be sure to factor in the principal cost, interest and car insurance.

Read More: What’s new on the 2019 Kia Sorento?

Benefits of buying a car 

You own the vehicle 100%
No mileage limits
Can customize any way you like
No monthly payments after the loan
No fees at the end of the lease
Sell or trade at anytime

Reasons to lease a car 

Lower monthly payments
Get to drive all the newest vehicles
Small down payment
Access to the latest technologies
Vehicle is always under warranty
Can purchase vehicle at end of lease 

Disadvantages 

Depreciation costs
Responsible for all repairs

Disadvantages 

Mileage restrictions
Don’t own the vehicle

Those are just some of the many differences between buying vs. leasing a vehicle. We invite you to contact our team of experts to see which option makes the most sense for you. Stop by and see us today!

Read More: What is standard on the 2019 Kia Forte?

Cars on a dealership lot

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