Buying vs Leasing

Which is the Best Option for You?

Should you buy your vehicle or should you lease it? It really depends on a variety of factors and we break them down for you at Ray Skillman Northeast Kia.

Now that you have found the car of your dreams, how will you pay for it? You may wonder whether buying your vehicle directly or leasing is a better option for you. There are many things that can determine which one makes more sense for your situation and we want to help you understand your options at Ray Skillman Northeast Kia.

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What Does It Mean To Buy?

When you buy your vehicle, you will own it. You can choose to pay cash upfront or finance a portion of the vehicle cost through a loan. When you finance, you will be required to submit a down payment. The amount of the down payment depends on your credit and the institution that issues the loan. There are no restrictions and as long as you make your payments on time every month, you will take possession of the title and own the vehicle at the end of the loan. You can then decide whether or not you want to keep it, trade it in for a new vehicle, or sell it to a private party. When you buy, you can finance through a local or national bank or credit union. We work with all lenders to give you the best interest rate possible.

If you have more questions come talk to our finance team at Ray Skillman Northeast Kia today.

Should I Lease Instead?

Leasing is not for everyone so there are a few things you should know. For instance, when you lease, you are “borrowing” the vehicle from the manufacturer for a term of typically 3 years. The vehicle is financed through the manufacturer for a portion of the cost. Most of the time, there is no down payment required when you lease, but it can lower your monthly payment. You may also have to pay taxes, acquisition fees, and other fees. There are certain restrictions when you lease. You are only allowed a certain amount of mileage when you lease. This is typically 36,000 miles. There are also damage and wear and tear limitations. If you go above these limitations, you will be required to pay the extra. After your lease expires, you have the option to either buy the vehicle or turn it back in for a new vehicle.

For more information on leasing, speak to a finance expert at Ray Skillman Northeast Kia.

Do I Qualify?

There are many factors that play into gaining approval for a lease or a loan. For instance, your credit score can impact your ability to gain approval as well as your interest rate. For those with good credit, it is pretty easy to get approved, but for those with not so stellar credit or no credit, it can be a little more difficult. Our team is experts at helping those with no credit or bad credit gaining approval. In fact, buying a car can be a great way to repair your credit. Ray Skillman Northeast Kia even has our Buy Here, Pay Here program to help out those that may have a difficult time getting approved by traditional financial institutions.

Get started today by finding the vehicle of your dreams, then fill out our online credit application. We are here to answer questions by phone, online, and in person.