Buy vs Lease

Breaking Down the Differences for Houston Area Drivers

Community Kia near Houston is here to help you decide whether you should buy or lease your new car. With a little help from us, you'll be able to determine which option is best suited to your financial situation and personal preferences. From future investments and down payments to mileage restrictions and monthly costs, we've got the info you need.

Buying vs Leasing 101:

Let's start with the most notable differences and work our way to the more nitty-gritty aspects. When you decide to finance a car, you will eventually own it. Once you pay off the loan, you no longer have to consider a car payment in your monthly budget. With leasing, you will always have to pay (until the lease is up...and you start the cycle once again). If you’re the kind of person who needs to know the vehicle will one day be yours, buying is likely the better option for you.

However, buying does have its drawbacks. When you buy a vehicle, the down payment and monthly payments are considerably higher. Since you’re buying the vehicle rather than paying the rate of depreciation (leasing), the payments are bound to be more substantial.

The Nitty-Gritty:

• • Mileage: When you lease a car, you have to keep the mileage below a predetermined level (agreed upon by yourself and the dealer). If you tend to travel a lot for work, you're likely to exceed this limit; thus, buying may be the more practical choice.
• • Damages. A lease agreement will hold you responsible for damages. Depending on the lease, you may even have to pay for minor scratches. When you buy a car, you don’t have to fix any scratches, dents, or dings acquired at the local supermarket. However, should your vehicle suffer any damages, our service center would be glad to return your car to its original glory.
• • Future value: When you buy a car, you have to worry about vehicle depreciation (especially if you plan to sell your car a few years down the line). When you lease, the future value is inconsequential; however, you have no equity in the car.
• • Early Termination. When you buy a vehicle, you can sell it at any time; you can also use the money from the sale to pay off remaining loans. When you lease, charges for early termination tend to be quite costly.

Deciding whether to buy or lease your new Kia is not an easy decision; however, there is one last note I’d like to leave you with: if you’re the kind of person who tends to drive a car into the ground, buying is probably the better choice for you; however, if you’re the kind of person who likes to hop into a new ride every now and again, a lease may be right up your alley.

If you have any questions, feel free to contact our Kia dealer near Houston at (281) 725-6632.