Figure Out If You Should Lease or Buy Your Next Car

There are a lot of decisions to make when purchasing your next car, but it's important to take your time with each of them. You'll have brands, models, trim levels, conditions, and vehicle styles to choose between, but St. Louis car shoppers will also have to pick how they're going to pay for the vehicle they want to buy. If you're buying a new Kia from us, you'll have the option to lease that model or buy it outright, which normally still requires a car loan. We know that this car financing decision trips up many, so we’ve highlighted the pros and cons of leasing and getting a car loan below!

Leasing a Vehicle in St. Louis

The idea behind leasing a vehicle is having the driver pay off the depreciation of a new vehicle while getting to use it for several years. The reason for this is to provide drivers with a brand-new car but with more affordable monthly payments then what you would get with a typical car loan for the same model. Leasing is especially popular among St. Louis drivers that like showing off their new toys as well as those drivers that need the newest tech, which is easy to find with a new Kia lease.

However, there are some aspects of leasing a car that may not suit your needs. To start, you'll have mileage limits for the leased vehicle, which are normally around 10,000-12,000 miles a year, so you're probably not setting out on any cross country trips in a lease. You also don’t own a leased car, so you can’t modify it with window tints or stickers, and you'll have to return it at the end of the lease agreement.

Getting a Car Loan in St. Louis

Securing a car loan is a simpler way of financing your car as it is similar to other loans you may get. You agree with a lender on a loan amount, interest rate, and term, which will decide how much you're paying each month. As long as you're making the monthly payments, the car is yours, so you can drive it as much as you want and do with it as you please. Your monthly payments will most likely be higher than a lease, but it's still the more affordable long-term option as you can sell it later to make some of that money back.

To wrap up, leasing is a more affordable short-term financing option great for those not driving much that still want to enjoy sparkling new vehicles while buying a car is for those that want a model to call their own. If you have any questions about the differences between buying or leasing a car or want to see your estimated monthly payments for both auto financing options, feel free to give us a call or visit!

Categories: Finance