How to Pay for Your New-to-You Kia

While Kia has some of the most affordable new cars in the industry, sticker prices are still higher than ever before. Fortunately, Hilltop Kia offers several financing options, including car leases and auto loans. Our finance experts have access to the best car lease deals and outstanding auto loans with affordable monthly payments.

Before you decide how to pay for your new car, the Hilltop Kia team near San Pablo and Hercules can help you make the best choice for your driving needs and budget.

Pros and Cons of Leasing a Car vs. Buying

Leasing a car helps drivers have affordable car payments. However, those benefits come with some restrictions. The difference between leasing vs. buying a car involves how much you finance. During a lease, drivers only pay for the time they have the car. Monthly lease payments include the sticker price minus the residual value (what the car is worth at the end of the lease term). Leases also include interest rates and additional fees that affect the monthly payment.

Leases usually last for 24 or 36 months. They also have mileage limits, usually between 8,000 and 15,000 annual miles. The lowest monthly payments have the lowest mileage limits. If you exceed your mileage limits in your lease agreement, you’ll have to pay a per-mile fee after you return the vehicle.

Because you don’t own the car during the lease term, you cannot sell or trade the vehicle during the lease term. You cannot modify the vehicle either. At the end of the lease term, you return the vehicle to Hilltop Kia to lease a new vehicle or you purchase the car.

The ideal lease customer drives minimal miles and enjoys having new vehicles every two or three years.

Benefits of Buying a Kia

The other financing option is a traditional car loan. Deciding whether to lease or buy often comes down to monthly payments and mileage limits. Because car loans cover the entire sticker price (minus down payments or trade-ins), car loan payments are usually higher than lease payments. But, you won’t have mileage limits. With an auto loan, you can modify your vehicle and sell it or trade it during the loan term.

Because sticker prices have increased over the years, lenders offer long-term loans. These new loans let buyers pay for their cars for 72, 84, or 96 months - making monthly payments lower than lease payments.

Finance Your Vehicle at Hilltop Kia in Richmond, CA

If you decide to get a loan or lease, your auto insurance company will require full coverage because you share ownership with a lender. Your credit score will also affect your ability to finance a car. If you have good credit, you’ll have lower interest rates and better terms than people with poor credit scores. Regardless of your choice, the finance team at Hilltop Kia is ready to help you finance your car purchase in the most affordable way possible using the latest Kia incentives.