Is It Better to Buy or Lease New Kia Vehicles in El Paso?

Mar 5, 2015

Deciding whether to purchase or buy your next new Kia from El Paso Kia dealers is an essential decision. There are benefits to both options, but deciding which one is best for your situation comes down to several factors. By taking the time to review the following questions, you can make buying or leasing a new Kia a positive experience.

How much excess cash do you have available? Financing a car normally has larger monthly payments. If you are on a tight budget and have good credit, leasing provides much lower monthly payments, since you are only paying for the monthly depreciation of the vehicle. Do not forget you have to maintain full coverage insurance with both leasing and financing, and need to deduct the cost of insurance from your available cash.
How much of a down payment do you have? Your Kia dealership in El Paso will require a down payment, regardless of whether you finance or lease a new Kia. You may use a trade-in for the down payment. However, depending on the value of the trade-in vehicle, you could still be required to put some cash down. Lease programs typically have smaller down payment requirements, compared to financing. Most lenders like to see at least a 15 percent cash down payment on financed vehicles. Sometimes the dealership runs lease specials where they waive the down payment on new leases, too.
How many miles do you drive annually? Lease programs have a set mileage requirement. If you exceed this pre-established amount, you are charged excess mileage fees. If you drive an excessive amount of miles each year, then financing is better.
How long do you plan on keeping the vehicle? If you like to shop for new Kia vehicles in El Paso every two to three years, leasing is the way to go. On the other hand, if you intend to keep the vehicle for a long time and continue to drive it for several years after it is paid for, financing the vehicle will cost you less in the long run.
How rough are you on vehicles? Leases can contain wear and tear clauses for body dents and scratches, interior damage, and other excessive wear and tear items not covered by your insurance. If you have kids or are accident prone, review the lease terms and conditions to see how much the penalty fees are, to help you decide if you want to lease the Kia.
Do you drive your vehicle for business purposes? The IRS allows people to deduct part of the annual costs of leasing a vehicle on their federal tax returns. The IRS does not permit people to deduct the interest on car loans.

For further assistance, and for help deciding whether to lease or buy your next new Kia, stop by or call your Kia dealership in El Paso, Integrity Kia, at 915-856-2982 today.