Benefits of Leasing in McMurray, PA
All About Kia Leasing Near Pittsburgh
If you’re looking for a new car in McMurray, PA, you should consider leasing a Kia from South Hills Kia. Leasing can often be more affordable than outright buying and affords you the latest technology in cars every few years.
When Does it Make Sense to Lease?
Financing a new car is a great option if you’re looking for a car you’ll keep for a long time to come or if you need to drive a lot for business or pleasure. Since you own the car, you can upgrade and modify it as much as you want. If you lease, your monthly payments will usually be lower and you can consistently stay up to date on the latest Kia models. Leasing is also a fantastic option for you if you don’t drive much or if you mostly drive around Pittsburgh, so your miles are low.
What are Some Benefits of Leasing a New Kia?
A new vehicle every few years. Lease terms are usually 24 to 48 months with most being 36-39 months. Many customers prefer this for safety and technology upgrades.
Warranty Coverage. Depending on your average yearly driving mileage, a lease is oftentimes under full factory warranty avoiding the expected higher repair bills of a higher mileage older vehicle.
Options at the End of the Lease. All South Hills leases are closed-end leases- these do not require the customer to purchase the vehicle at the end of the lease or pay any difference between the residual value (the end value as determined by the lease agreement) and market value (the value of the vehicle as determined by market conditions at the end of the lease term).
Customers still have the option to purchase the vehicle for a predetermined value stated on the lease contract.
Payments. Leasing a car often has a lower monthly payment compared to financing a car with the same loan terms since with a lease you are paying for the depreciation of the vehicle over the term of the lease rather than the whole vehicle cost.
Gap Insurance inclusion. Gap Insurance or guaranteed auto protection, comes into play if the vehicle is ever deemed a total loss from theft or damage. This coverage represents the “gap” between what your insurance company pays and what you owe the lessor at the time the car becomes a total loss, which can potentially be thousands of dollars.
Gap insurance pays off the lease balance if a leased vehicle is stolen or totaled. Gap insurance is included in all leases from South Hills as a requirement from the leasing bank.
What Should I Consider When Leasing a Car?
Mileage. Most leases at South Hills are between 10,000 and 15,000 miles per year. Payments do adjust accordingly as the number of miles driven will affect the residual value at the end of the lease term. There is a mileage charge if the customer exceeds the mileage allowance on a leased vehicle.
This penalty typically is calculated per mile. Paying for extra miles at lease inception is almost always less expensive than the penalty for exceeding the allowance.
Upfront charges. At minimum the first payment and all state transfer and license plate fees are required at signing. Many customers choose to pay a down payment to reduce lease payments. Some banks require a security deposit as a safeguard against nonpayment.
Lessors often require a security deposit of about one monthly payment or a flat fee. You should get this deposit back at the end of the lease, but the lessor often will keep it as part of any excess wear-and-tear charges assessed.
Wear and Tear. Expect to be charged for damages to a leased vehicle that are greater than “normal” or “reasonable.” These parameters are defined in the lease agreement.
Also wear items like tires are expected to be in reasonable condition as defined by the leasing agreement. Wear and tear is usually of greatest concern to those with small children or pets. Talk to your Finance Manager about protection products to reduce the chances of stains and interior damage.
There is no universal right or wrong answer in determining whether to lease or buy a vehicle. The decision whittles down to your own situation based on a variety of variables. To help with your decision between leasing and buying a vehicle, it’s important to consider the pros and cons for each option and discuss these with your Sales Consultant. Ultimately, the decision will depend upon your specific circumstances, but being informed and weighing your options should help you find the best value for the vehicle you want.
Common Leasing Terms Explained
- Lessor and lessee: The leasing company and the person leasing the car respectively.
- Acquisition fee: A fee charged by the lessor to start the lease. These are seldom negotiable.
- Capitalized cost: The base price to be used in determining what you’ll need to pay.
- Mileage allowance: This is the number of miles a leasing contract permits you to drive per year without incurring additional costs. Typically this is somewhere between 10,000 and 15,000 miles.
- Money factor: This is a decimal used to describe the interest rate. You can get an idea of the equivalent interest rate by multiplying it by 2,400.
What am I Responsible for When I Lease a Kia?
The mileage allowance determines how many miles you can drive your Kia per year. If you go above that number, you’ll have to pay extra for every mile you drove. You’ll also be responsible for any undue wear and tear. At the end of the lease, you can get a new lease, and depending on the contract, extend your current lease or buy the Kia.
Take the Next Steps Towards Leasing a new Kia
If you’re interested in learning more about Kia lease deals, contact us or give us a call to discuss specifics. We’ll help you find a Kia vehicle you’ll love and a lease deal that works for your finances. South Hills Kia has a terrific selection of Kia models to lease near Pittsburgh, so take a look!