Even experienced car buyers become quite confused when it comes to finding the best way to lease a car. Despite the terminology being mystifying, you can hardly know which monthly payment figure is correct, or what is important when negotiating. Leasing is increasingly becoming a popular option for most people who prefer it to car buying. If you are in the same fold, below is all you should know when leasing the Kia Optima lease $99.
Leasing, in theory, is simple. You pay for the vehicle’s depreciation that occurs during your term of the lease, some interests and charges applicable. However, in practice, it can be a confusing process. It has a confusing language that can easily get you lost. Nonetheless, there are several vehicles available under $99 car lease no money down. You should only find one that meets your needs, meets your budget, and works perfectly.
How Does KIA Optima Lease $99 Work?
When searching for a good dealer for Kia Optima lease $99, note that leasing contracts may vary from one dealer to another. However, some components of the deal remain the same. Toyota lease deals zero down, for instance, enables interested individuals to lease SUV and trucks without having to pay any money upfront. The same might not apply for Hyundai sonata lease $99.
As with most dealers, car-leasing contracts run for a period between two to four years. In most cases, the length of this contract depends on you, how long you want to use the car or how long you will be waiting to get a brand new car. Choosing the model of the vehicle is greatly dependent on your budget. This is probably why hatchbacks are among the most leased cars compared to luxury vehicles and 4 x 4 models. There is no point in leasing a top of the line Range Rover if you can’t afford the monthly payments.
Fortunately, there are various car lease 0 down lease specials and lease deals starting from $99 per month. This means that you will have options even with a tight budget. After ordering your vehicle of choice, you should pay the processing fee, which ranges between $150 and $200. However, before making the payments, ensure that you have an approved finance option and have agreed on the terms, which include the mileage limits.
What Happens When KIA Optima $99 Lease Deals Expires?
If your Kia Optima lease $99 contract runs out, you will have two options. First, you can either opt to extend the lease. If you are thinking of doing so, consider consulting with your finance company some months before the expiry of the deal to see if they can allow for this. You should also ask for a discount on monthly payments since it is an old car.
The second alternative is returning the car back to the dealer. If the car is in good condition, well maintained and you haven’t exceeded the mileage agreed, you won’t have to pay any additional fees. The finance company will collect the car and return it to the dealer for free.
However, if you have exceeded the mileage, you will have to pay for the exceeded mileage. Companies have varying rates per mileage exceeded. The same applies if you didn’t maintain the car well. You will have to pay for the costs of repairing the scrapes and dents.
Pros and Cons of KIA Optima Lease $99
Making a decision as to if finding Kia Sorento lease deals is the right option is not definitive. However, there are various pros and cons to leasing a car. All you should watch for is that the disadvantages don’t outdo the benefits. If it does, then the deal is likely not the right option for you.
Is KIA Optima Lease $99 Cheaper Than Buying?
Getting to know if leasing is cheaper than buying is a personal decision. However, from a pure investment point of view, it is not cheaper. This is because you will have nothing to show at the end of the contract. However, if the monthly payments are low, and leasing allows you to get behind the wheel of a car you might not afford to buy, it can be a good option.
Another factor that determines if leasing beats buying is the make and model of the car. For instance, if you are looking for Kia soul lease deals for three years, you may have to pay $1800 upfront, and 35 monthly installments of approximately $150 per month. At the end of the deal, you will have paid a total of $7050 to rent the car, but you will have to hand it back.
For that amount, it would have been prudent to purchase a small hatchback model that can last you more than three years. Some may argue that they don’t have the initial financial strength to make a purchase, thus finding leasing a better option.
Are There Payments for Extra Servicing?
This depends on your lease agreements. Some lease dealers include car maintenance and servicing on the monthly payments. In the unlikely case that you are offered a non-inclusive package, make sure that you clarify with the dealer before signing the contract. If the cost isn’t inclusive, contact the manufacturer and inquire about the cost of maintaining the car over the term.
Tips for Kia Optima Lease $99
If car leasing is the right option, you should consider the following tips to find the best deal.
1. Understand The Language of Leasing
You can easily sign up for a bad deal if you don’t understand the language car dealers or finance officers use. Leasing terminology is quite different from vehicle purchases and loans. Well, below are common terms you will come across.
- Capitalized cost – also known as the cap cost, it is the initial price of the vehicle. However, don’t confuse it with the MSRP, which means the price of the vehicle as shown on the window sticker. Cap cost includes all the discounts that you can negotiate.
- Cap cost reduction – this refers to any figure reached at after negotiations from the capitalized cost. This includes the value of a trade-in and special lease deal offered by the car manufacturer. Maximizing the reductions and discounts on capitalized cost lowers the total amount you will have to pay for the car.
- Money factor – this is the interest rate accrued by the funds financing the lease. This cannot be directly compared to any car loan interest rates but can be used to compare various car lease offers.
- Residual value – this is the professional estimate of the worth of vehicle after the end of a lease contract. It factors in the expected depreciation of the car after the contract, and often estimated before signing the lease contract. It is an educated guess of the vehicle’s worth, which could be high or low. What you will pay for the lease is the capitalized cost minus the residual value, plus the fees and interests.
- Buyout price – this often comes in if you want to buy the car once the contract expires. It is the purchase price, which may be equal to the residual price or varies.
- Acquisition fee – this is an administrative fee paid to cover the cost of preparing the car lease. It includes registration costs and taxes when beginning the contract.
- Disposition fee – these are charges paid at the end of the contract. This is paid to curb the car preparation cost and refurbishment before being sold. It can also include payment for any excess mileage and wear and tear costs.
- Due at signing – this is the amount of money you will have to pay to drive the vehicle home when initiating the lease. It includes a down payment if you don’t get a zero down payment deal, payment for the first month, and any security deposit.
2. Understand What You Can Negotiate
Whereas you can negotiate several payments when leasing a car, some fees aren’t negotiable. To get the best deal, get to know what you can negotiate, and focus on doing so. Negotiable charges include;
- Capitalized cost – similar to when purchasing a car, you should focus on bringing down the price of the car to save some cash. Do some basic research on the general cost of the car in local market conditions to determine the current sales price. You can as well consult with various lease dealerships to find the best price for the vehicle you intend to lease.
- Money factor/interest rate – you can look for discounts on your interest rates. However, to get this, you should ensure that your credit score is good. Most lease deals apply to customers with excellent credit scores.
- Cap cost reduction – find the best lease deal possible by maximizing the amount you get from a trade-in. This will lower the amount payable as monthly installments and the amount paid at signing.
- Buyout price – if you would want to buy the vehicle after the lease, you should negotiate for the buyout price beforehand. This is because you might not have the opportunity to do so after the lease. Negotiating for a low buyout price won’t affect how much you will pay for the contract.
- Mileage cap – it is important to understand your annual mileage coverage before leasing a car. If you think you will surpass the mileage, negotiate for a high mileage cap or reduction of mileage fees.
3. Focus Beyond the Monthly Payments
Most clients make the mistake of taking a lease based on the monthly payments. However, this is not the best way of saving money. You should look at the total amount of the lease, which sums up the initial down payment, taxes, and fees. It is through this that you can compare the various lease offers in the market.
To do this, multiply the monthly payments by the number of months then add to the amount paid as a down payment. You should also include and interests and fees charged by the dealership. The sum of these is the total cost of the contract. Always insist on doing the math yourself and avoid depending on the calculations given by the salesperson.
4. Avoid Costly Add-Ons
Another good tip for finding a perfect lease deal is avoiding costly add-ons. This will increase the amount payable upfront or with each monthly payment. You can purchase several items outside the dealership at affordable prices.
For instance, most leasing companies require that you purchase GAP insurance to cover the value of the vehicle if it is stolen or totaled during the lease. Before purchasing it from them, ask around if you can find an insurance company, credit union, or bank with an affordable offer.
5. Double Check the Documents
Before signing any lease document, you should double-check to ensure that all documents you are signing against as agreed. Verify that there are no add-ons or fees, which raise the amount before signing the deal. If there are any errors or blank spaces, ensure that they are filled in or rectified before putting a pen on them. Don’t leave blanks for the salesperson to fix values later.
The entire process of leasing a car is more complicated than you can imagine. This is because it involves a tedious process, which includes finding a car that meets your needs, finding a good deal, negotiating the various terms, and finding a financing company to approve the lease. There are also dilemmas as to if you should lease or consider purchasing the vehicle.
Well, if your mind’s made up, head straight into a dealership and ask for what you want. Negotiate where possible and ask for discounts on various components. Besides, check on your credit ratings to get a good deal.