Your monthly cost for a 36-month lease will be close to $450.
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Which month is ideal for leasing a car?
The optimum time to lease an automobile is typically just after the model is released. The residual value will be at its peak then, which means you’ll probably pay less in depreciation fees.
The Automotive Lease Guide’s Residual Percentage Guide, which is updated every two months, typically serves as the foundation for the residual values. The residual values tend to decrease during the course of the model year.
When you return an automobile that you leased for 36 months near the conclusion of its model year, it will have been driven for four years. This implies that you will be responsible for paying depreciation for an additional year.
There are benefits and drawbacks to beginning a lease early, as the negotiated price of a car tends to decrease as the model year goes on. You should be able to negotiate a respectable purchase price for your lease as long as you are aggressive in your negotiations.
If the car is selling like hotcakes, proceed with caution. Demand for a new model can be so great that it may be impossible to negotiate a price lower than the MSRP. If this is the case, give the supply and demand two or three months to catch up.
Another reason to lease early is that most manufacturers increase the invoice and MSRP costs of their vehicles during the model year, presuming the car is not a recently remodeled model. Some domestic producers change their pricing numerous times, which might increase the cost of the vehicle by a few hundred dollars (and thus raising your capitalized cost).
Between July and October, when the majority of new models are released, is when you should aim to lease to get the best deal.
Leasing timing is only irrelevant if the manufacturer is providing exclusive leasing offers. You should take advantage of these subsidized offers whenever they are offered because they may have artificially inflated residual values, cheap money factors, or reduced capitalized costs.
Is the Kia Optima a decent vehicle?
The 2020 Optima is a reliable used car, yes. This sedan offers a comfortable ride, a stylish interior, a sizable trunk, and a feature-rich and user-friendly infotainment system. Additionally, it offers a ton of safety features and one of the best safety ratings among midsize cars.
Must I rent a Kia?
Leasing can also be a fantastic choice with some incredible benefits. If you’re a driver who enjoys variety, you’ll be enthralled to hear that leasing allows you to enjoy the newest models that Kia has to offer every few years when you renew your lease. Leasing not only allows you to save more money due to cheaper payments.
Talk to the lender
This tactic may work best if you’re experiencing brief payment difficulties. Don’t be ashamed; this issue is typical. Call the lender and speak with a representative. Request a payment deferment or reduce payments for a few months.
The lender might be open to working with you to come up with a solution that benefits both of you. Remember that even if you negotiate a temporarily reduced monthly payment or defer payments, the loan balance will remain the same and interest will still be charged. Even so, it’s preferable to accruing late fees or destroying your credit.
Refinance
It may be smart to refinance your auto loan if you consistently struggle to make your payments. Depending on your situation, you might be able to acquire a loan with a longer term, a lower interest rate, or both. But take note: You will pay more interest overall if the loan is longer. Here are some tips for refinancing when your car loan is in default.
Apply to a handful of your preferred lenders to refinance. As long as you submit all of your applications within a two-week window, applying to many lenders won’t harm your credit any more than applying to just one does. The American credit bureaus permit this time frame so that customers can review shops.
Sell the car yourself (and buy a cheaper one)
Consider selling the automobile yourself and purchasing a less expensive one if you’re having a long-term payment issue and refinancing is pricey or not an option. As a rule, selling your automobile privately rather than trading it in at a dealership will net you more money.
Renegotiate your loan terms
When you’re having trouble making a payment, lenders frequently let you postpone it. For a month or two, this can ease the burden, but it may result in higher overall costs. This is so because interest keeps building up while payment is being delayed.
You can also ask for a loan adjustment. Your lender might be ready to lower your interest rate or prolong your term, which would entail paying more interest. The latter is more advantageous monetarily, but if your credit is bad, it could be challenging to qualify.
Refinance your car loan
Refinancing your auto loan can cut your monthly payment in two different ways. With the same term remaining on your present loan, you can acquire a lower interest rate, which results in reduced monthly payments.
Alternately, you could refinance with a longer loan term. Your monthly payments will undoubtedly be reduced as a result, but you’ll end up paying more in interest overall.
Sell or trade in your car
You can always sell your automobile and switch to a more economical vehicle if it exceeds your budget. The easiest option is to trade in your car at a dealership. You won’t have to deal with a private sale and can use the extra money as a down payment on your future vehicle.
You might make more money from private sales. Just be aware that it can be challenging to sell an automobile that has a lien. Make sure you are not breaking the conditions of your loan agreement by speaking with your lender.
Make extra payments when possible
Getting ahead on your auto loan can let you avoid or reduce future monthly payments. Despite the fact that many lenders only apply extra payments to interest, you might be able to ask for yours to be applied to the principle instead.
This will assist in lowering your overall debt. Additionally, it will give you some much-needed flexibility going forward.
Should I provide a deposit on a lease?
Down payments do not reduce the cost of leasing A down payment in a car lease is frequently referred to as a capitalized cost reduction, or cap cost reduction. Unless you have low credit, putting money down on a car lease is usually not necessary. In general, you shouldn’t sign a lease if a down payment is not required.
Which car leasing term24 or 36 monthsis preferable?
Conclusions. 24-month leases might provide more flexibility, but most buyers will discover their monthly payments are significantly more. A 36-month contract is generally a better option if getting the most value for your money and affordable monthly payments are your top priorities.
Is it preferable to put more down when leasing a vehicle?
A significant down payment will undoubtedly cut your monthly lease payments, but you won’t likely save much money compared to the overall cost of ownership while you are leasing. This is due to the fact that a low money component results in minimal interest costs.
What is the Kia Optima’s flaw?
Engine issues with the Kia Optima are widely documented. According to reports, the 20112014 Kia Optima has a serious manufacturing problem with the engine that could lead to premature bearing wear. Uncontrollable engine seizing could result from this, raising the possibility of collisions or crashes.
Is Kia getting rid of the Optima?
For 2021, Kia fully redesigned the now-discontinued Kia Optima mid-size car, renamed it the K5, and displayed a profile that contrasted sharply with the uniform appearance of rivals.
How long does a Kia Optima last?
The Kia Optima has a typical lifespan of 200,000 miles, which equates to around 13 years of service when you consider the average annual mileage of 15,000 miles. Because of this, the Kia Optima is an affordable option on the used automobile market that will last you for many years.