The Financial Obligations of a New Kia Lease from an El Paso Kia Dealership

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:

1. 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.
2. 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.
3. 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.
4. License plates: In order to drive the car, you have to obtain license plates and pay for tag renewals annually.
5. 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.

Now that you are aware of the financial obligations of  lease programs, you can better decide if a new Kia lease is the right choice for you. It is important to remember, there are specific terms and conditions with a lease beyond financial obligations, such as mileage restrictions and not being able to modify the vehicle from its original condition. If you drive an excessive amount, there are a few options, to avoid having to pay a fee at the end of the lease, like paying for extra miles upfront as part of your monthly lease payment.

For more information about new Kia lease programs and assistance in determining if a lease is right for you, stop by Integrity Kia in El Paso today, or contact us at 915-856-2982 to speak to one of our friendly and helpful sales associates.

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