Finance vs. Lease

 

FINANCING

Financing, the traditional way to drive a new Kia.

Purchasing your new Kia can make good economic sense, especially if you intend to keep it for an extended period of time. After all, once it’s paid for, you’re driving for free – maintenance and repairs excepted. You’re also building equity in the car. So when it comes time to purchase a new one, chances are you’ll have a valuable trade-in to use as the down payment or a portion of it.

Couple these facts with one of the special finance rates we frequently offer, and buying can be a very attractive choice. Also, some people are simply more comfortable with the sense of security that comes with having ownership to their vehicle. If that’s you, we have some great options for you to consider.

LEASING

Leasing. The increasingly popular way to enjoy a new Kia.

Since the early ‘60s, more and more people have discovered the advantages of leasing. Thus, a method of acquiring a new vehicle, once nearly the exclusive domain of businesses, has become popular with the general public. And for many good reasons. But because leasing is relatively new territory for most people, there is a brief learning period required to become familiar with leasing’s ins and outs.

For starters, there are two basic lease types: open-end and closed-end. With an open or closed-end lease, the residual value of the vehicle is established at the onset of your lease. And unlike an open-end lease, a closed-end lease residual value is guaranteed by, and is the responsibility of, the leasing company upon its maturity. With an open-end lease, you (the lessee) assume responsibility for the vehicle’s residual value at the end of the lease. For your protection and peace of mind, all KIA Credit leases are closed-end. We assume the risk. So if the market value is higher than the residual value we have established, and you decide to purchase the vehicle, you come out ahead. If the market value is lower, you are protected.

Our lease program allows for 24,000 km of driving per year. That’s about what the average Canadian drives in a year. If you’re a high-use driver and expect to exceed the standard lease’s 24,000 km yearly limit, you may find it more economical to buy extra kilometres up front. We also offer flexible low-kilometer lease options of 20,000 km's and 18,000 km's to allow you to customize your new Kia lease. And that's yet another way your Orleans Kia can tailor the lease to meet your needs.

 *On Approved Credit and no matter what your down payment, you are responsible for the first month’s lease payment (plus taxes). Typically the first month’s payment are payable when you take delivery of the vehicle.