Finding Kia lease deals doesn’t have to be like looking for a needle in a haystack. These steps will help make it fast and easy.
Finding great Kia lease deals doesn’t have to be a struggle. In fact, there are some simple steps you can take to find great lease deals on a brand-new Kia. Follow these steps to find a great lease deal on a Kia quickly and easily.
What are lease deals?
A car lease deal allows you to rent or borrow a vehicle for a set period of time for a set price. Most lease deals are initiated at car dealers though occasionally you can get a lease through a bank or another source of funding. You can also visit AutoGravity to start a lease and save time. Lease deals enable you to lease the right new vehicle for you for an affordable price. As discussed in our Lease Vs. Buy a Car article, when you lease a vehicle you put down a small amount of money and make monthly payments. At the end of the term of your lease you return the vehicle to the dealer, pay for any damage or mileage over the agreed limit and your lease obligation is finished. It’s important to understand what great Kia lease deals look like before you start hunting for one. Once you understand that, it’s easy to spot a great one.
Get more residual value. What is residual value in a lease deal and why does it matter?
First, check the residual value. The residual value or residual is a prediction that the lender makes about how much your vehicle will be worth at the end of the life of the lease. It is also the amount you could purchase the car for at the end of your lease if you decided that you wanted to buy it. It matters because it is the single biggest thing that impacts how much you’ll pay for your lease. When you lease you only pay for the value of the portion of the time you use the vehicle. That residual number is based on a variety of factors including:
- The predicted market for your car at the end of your lease. Banks make these predictions based on the changing tastes of drivers in your area.
- Data from past models and years. Banks and lenders operate on the idea that the past performance of vehicles and their values determines the future value of your car at the end of its lease.
Banks and lenders determine these numbers and, in most cases, there’s no room for negotiation. The residual is one of the most important things to consider when determining whether a lease is a good deal or not. The higher a residual on a vehicle you are looking to lease the less you’ll pay to lease the car. The lower the residual the more you’ll pay per month to lease.
Why does the interest rate, lease factor or money factor matter on a lease deal?
Your interest rate is important when evaluating whether or not a lease deal is a good deal because it determines how much you’ll pay per month. The higher the interest rate, the more you’ll pay per month. In lease terms, the interest rate is often referred to as a lease factor or the money factor. These terms can be used interchangeably, though the way they are quoted may differ.
- Interest rate: This is the rate that is charged by a lender in order for you to finance or lease the car. Interest rates are usually noted as an APR or Annual Percentage Rate and look like standard percentages like 3%, 5% or 0%.
- Money factor or lease factor: Money factor or lease factor mean the same thing. It is a different way to express the interest rate. Money factors or lease factors are expressed as decimals. So 0.0024 or 0.003. When you see this kind of number in a lease deal, multiply it by 2,400 to get the more common APR or interest rate.
By closely examining the residual value and the interest rate you can determine whether or not a Kia lease deal is a good deal for you.
How do you find great Kia lease deals fast and easy?
AutoGravity will automatically use your location to find the best deals near you, that way you don’t have to do all the legwork. AutoGravity will use your location to find the best deals in your area and cross reference those deals with actual inventory that exists on the lot, taking all the hassle out of the process. You can also do a Google search. If you search for “Kia lease deals”, the Kia site will pop up and ask for your zip code. When you put in your zip code, the deals in your area will come up. Just be aware that you may get to the dealer and find that the car you wanted is not there, as noted below. One thing to know about Kia lease deals is that often times they differ based on where you are located and which dealer you choose. If you are looking at lease deals on convertibles in Florida, they may be more costly because there is a higher demand for convertibles in Florida than say in Minnesota. The rules of supply and demand apply here. Additionally, high volume dealers often have better negotiating power with the manufacturer. They often can drive a better deal when they purchase the cars from the manufacturer and those can trickle down to you as the buyer.
What constitutes a good lease deal on a Kia?
A lease deal with a high residual and low interest rate is a good lease deal. The lease deal should also fit your budget and the vehicle should meet your needs to be a good lease deal. Be sure to do your homework before signing any paperwork. Generally, any Kia lease deal where you can get into one of their vehicles for under $200 a month and minimal money down constitutes a good Kia deal.
Why are the lease deals you see online not reflected in the actual inventory at a dealer?
You’ll see a lot of deals advertised online that may not necessarily be reflected in the true inventory at the dealer because many times these are advertising deals used to get you in the door. Many times, these deals require perfect credit, a large capital cost or down payment, or a longer term. A capital cost reduction is any amount of money that you put down on a leased vehicle to reduce the monthly lease cost. We don’t recommend putting down more than $2,000 (above the taxes and fees you have to pay) on a lease. Additionally, some dealers won’t have the advertised vehicle on their lot. In that case, they may have to transfer the car from another dealer nearby which means you’ll have to wait to get your vehicle. This can be the result of high demand for that trim, or because the dealer network is running a special on that vehicle resulting in a lower number of cars in the area. Dealers are always trying to move inventory. They sell vehicles to each other or sell them to customers so that they are constantly generating demand. That demand allows them to charge more when you are looking for a great lease deal, so it pays to do your legwork before you get to the dealership to ensure that the car you want is actually there and available.
Why you have to go to a dealer (and even start over again)
When shopping for great lease deals online you will likely have to go to a dealer and start over again because the deals that are advertised online are generally used to get people in the door. Think of it like sales at department stores – those boots in the window are marked down by 50% but, when you go to get the boots in another color or another size, those are not marked down. It’s a common marketing tactic used to get people in the door. When you go to a dealer with a specific deal in mind, you may be disappointed when you arrive and to discover that the details of the deal may not meet your needs. You may also be disappointed because the car may not exist on the lot. This means that inevitably you will likely have to start over when you get to the dealer, and, in all likelihood, you will have to sit with a salesperson, spec out the vehicle you want with all the right upgrades and haggle.