Lease VS Buy

Leasing VS Buying? A Difficult Question Which Orr Kia of Bossier City is Here to Answer

You might have narrowed down the search for a new Kia or you might be completely clueless as to which one is right for you, but in any case, financing and leasing is an important step to think about in the process of purchasing a new or used car. Financing and leasing are both payment routes which most customers tend to choose as very few, if anyone, can pay the full balance of a car in cold, hard cash. So, which of these payment avenues is right for you? Well, there are a lot of great benefits to be had from both, so let us go over which is right for you here at Orr Kia of Bossier City, located just a half hour outside of Stonewall and proudly serving the Shreveport area as well!

    

Equity and Credit

While equity is used in a variety of settings from stocks, to home buying, to corporate decisions, your personal equity refers to the difference of the total value of the loans you accumulate versus how much you still owe when it comes to payment. Your own equity and dependability on paying off loans is one of the strongest determining factors in building your credit, so an auto loan is the best route to take if you are looking to strengthen your credit rating or bring it back from a bad rating. As long as you make structured auto loan payments in a timely manner, your equity will rise and with it, you will also see your credit score rise in the long-term. 

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Short-Term Affordability

If you are someone with a shorter commute or someone who does not want to be tied down to a long-term loan agreement, then leasing might be the better option for you. In a lease agreement, you make a down payment and structured monthly installments, but the contract is only for a short-term at a limited number of miles, similar to a rental contract. When leasing, you only pay for a percentage of the vehicle's value as you are not looking to totally own the vehicle, so your down payment and monthly payments will often be smaller.

Modifications

However, one thing that people might not enjoy in a lease agreement are some of the stipulations, such as modification. Say you want to install a new roof rack on your Kia Sedona for a camping trip in Haughton or Greenwood, or you want to give your Kia Stinger a slick new paint job. A lease agreement might not permit many modifications such as these that would alter the vehicle permanently, unless you plan to purchase the vehicle at the end of the lease. In an auto loan agreement, you have no restrictions on distance and you can modify the vehicle as you like, so long as its service schedule is maintained, and the vehicle's payments are made on-time. Once the vehicle is paid off, it is yours to sell, modify, trade-in, or give away as you see fit.

Warranty Coverage

A vehicle, no matter purchased or leased, is an investment in and of itself, so you deserve to have the right protections for your investment. With a Kia lease agreement, you will find that its many warranties keep you covered in the long-term but might require renewal if you own the vehicle long-term. However, in a short-term lease agreement, the vehicle remains under its factory-issued warranties, giving you access to high-quality repairs and maintenance through our service center.

It's All Up to You!

Whether you are thinking in the short-term or long-term, there are a great deal of benefits to be had from financing and leasing. You can talk about both options with our finance center when you come to test drive the new Kia model or used car of your choosing here at Orr Kia of Bossier City! We are located just a half hour outside of Plain Dealing and we are proudly serving the Marshall, TX area as well.