Should You Finance or Lease Your Vehicle?

Buying a car is a big financial decision you need to make to achieve your driving goals. Sometimes, tapping into financing or leasing to save on hefty car payments is the better option.

Financing a vehicle allows you to manage your car payments through equal monthly installments, depending on your interest rate determined by your financier or lender, until you’ve paid off the total price of your vehicle.

On the other hand, leasing, which works like renting a vehicle for a set period, allows you to have smaller car payments for a brand-new or newer model with the latest technology you can enjoy.

Read on if you want to explore the pros and cons of leasing or financing a vehicle. You can also visit our Kia dealership for more details and to ask questions from our expert consultants.

Visit Hilltop Kia in Richmond, CA, to learn more about your finance options to help you select the best Kia model for you and your family today!

Pros and Cons of Leasing Your Vehicle

Drivers lease their vehicles for various reasons, including paying lower monthly car payments and, depending on the dealership, zero to little down payment upon driveoff. Leasing also allows you to drive a brand-new or newer model with modern amenities, enjoy lower or no maintenance costs due to warranties, and not worry about re-selling or owning the car.

On top of that, leasing gives you the flexibility to return the car, upgrade it to a newer model, or keep it at the end of the lease and receive tax incentives, depending on your state.

The only disadvantages of leasing are having a mileage limit and not owning the vehicle after paying monthly payments for the lease contract duration. It also prevents you from customizing your car, requires you to pay for damages to the vehicle at the end of the lease, and may impose higher insurance rates.

Benefits and Disadvantages of Financing Your Car

Financing a vehicle is common among drivers buying their cars from dealerships. By applying for a loan through the dealership, a car buyer can be approved for financing with lower interest rates, allowing them to easily pay the monthly premiums that align with their budget.

In contrast to leasing, financing allows you to own your vehicle after fully paying it off and has no mileage restrictions. That means you can travel anywhere and resell your car once you’ve taken ownership. In addition, financing may get you tax incentives, depending on your location, and does not charge you extra if you’ve damaged your vehicle.

However, financing may require higher insurance rates and higher monthly payments. It can also cause significant depreciation as soon as you’ve driven your vehicle to your home.

Discover and Explore Our Robust Financial Options

Do you want to drive our stylish, cutting-edge, contemporary Kia models? Yes, you can.

We'll help you select your vehicle to address your driving needs and offer financing and leasing opportunities to assist you with payment. For more details on how to submit your application or go through our seamless process, you can always reach out to our friendly customer service representatives, and we'll be glad to help.

Visit Hilltop Kia and schedule your appointment with our Finance Center today!