- Monthly lease payments: There will be a monthly payment amount, often less than traditional financing, which needs to be paid on time to avoid late fees. If you constantly are late or miss lease payments, the lender may repossess the vehicle.
- Repairs and maintenance: You are responsible for all repairs and maintenance of the vehicle, even though you do not own it. You are required to keep the vehicle in proper working order, as well as keep the interior and exterior clean. If you are involved in an accident, you have to get any damages fixed.
- Full coverage car insurance: The lease lender will require you to maintain full coverage car insurance on the vehicle during the length of the lease in the event of an accident. If you do not, the lender may take out their own policy to protect their interests, and add the costs onto your lease or repossess the vehicle.
- License plates: In order to drive the car, you have to obtain license plates and pay for tag renewals annually.
- Gasoline: Leasing does not cover fuel and other transportation costs (i.e. tolls and parking). These are your financial responsibility. Sometimes there are promotions, where the dealer does offer a prepaid fuel card in a set amount to help out initially.
New car leases are sometimes confusing for people who have never leased a vehicle. It is important to understand the financial obligations of a lease to determine whether this is your best option in order to drive off in a brand new Kia vehicle from your Kia dealer in El Paso. Just like financing a new car, a lease is a type of financing program.
A lender underwrites the lease agreement for a set period of time, typically three years. Most lease lenders require a down payment unless there is a special promotion in effect, where the down payment is waived. Acceptable down payments are in the form of cash or an allowance from a trade-in vehicle. In addition to the down payment, other financial obligations you are required to pay during the length of the lease include:
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Warranties include 10-year/100,000-mile powertrain and 5-year/60,000-mile basic. All warranties and roadside assistance are limited. See retailer for warranty details.