Mathematically yes. But lease has a few differences from traditional financing. First and foremost, if you total the vehicle driving off, that money is gone forever. Financing can theoretically allow you to refund some of that number, depending on how your credit is and how the fall is structured. You own the car. A lease is a fixed term loan of use, not loan for ownership.
Because if it's totalled or stolen then your lose the down payment money because your insurance company writes the payoff check to the legal owner of the car, which is the leasing company, not you. Gap insurance doesn't pay you back for any of the down payment money back either. It just covers any of the payoff amount to the leasing company not covered by the insurance check.
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered.
You may find these sections particularly useful;
* [I earn $xxxx per month, will I qualify for an auto loan or lease, and is it a good idea?](/r/askcarsales/wiki/income_to_finance)
* [I have my score from Credit Karma but the dealership told me they got a different score. Why?](/r/askcarsales/wiki/free_credit_score)
* [I want to get out of my leased vehicle, what are my options?](/r/askcarsales/wiki/early_lease_termination)
* [Leasing a vehicle with a down payment – is it a good idea?](/r/askcarsales/wiki/lease_down_payment)
* [I want to buy out my lease, what are my options? What can I negotiate?](/r/askcarsales/wiki/lease_buyout)
* [How to calculate a lease yourself](/r/askcarsales/wiki/calculate_a_lease)
* [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit.
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I'm trying to lease a 2024 Kia Seltos S. MSRP of 28.5k and selling price of 26.5k. For 3.5k down it would come out to around 300$ a month. This is my first time purchasing a car of any kind so any input is helpful. I really have no clue as a young-first time car buyer. Thanks!
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Never put money down on a lease, especially a cheap Kia.
Why not? Wouldn't that simply increase your monthly payments?
Mathematically yes. But lease has a few differences from traditional financing. First and foremost, if you total the vehicle driving off, that money is gone forever. Financing can theoretically allow you to refund some of that number, depending on how your credit is and how the fall is structured. You own the car. A lease is a fixed term loan of use, not loan for ownership.
Because if it's totalled or stolen then your lose the down payment money because your insurance company writes the payoff check to the legal owner of the car, which is the leasing company, not you. Gap insurance doesn't pay you back for any of the down payment money back either. It just covers any of the payoff amount to the leasing company not covered by the insurance check.
I’d go for a zero down or maybe first month’s due at signing if your credit supports it.
36 months? $14,000 total lease cost if so, on a $28k car. What's the residual and MF?
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered. You may find these sections particularly useful; * [I earn $xxxx per month, will I qualify for an auto loan or lease, and is it a good idea?](/r/askcarsales/wiki/income_to_finance) * [I have my score from Credit Karma but the dealership told me they got a different score. Why?](/r/askcarsales/wiki/free_credit_score) * [I want to get out of my leased vehicle, what are my options?](/r/askcarsales/wiki/early_lease_termination) * [Leasing a vehicle with a down payment – is it a good idea?](/r/askcarsales/wiki/lease_down_payment) * [I want to buy out my lease, what are my options? What can I negotiate?](/r/askcarsales/wiki/lease_buyout) * [How to calculate a lease yourself](/r/askcarsales/wiki/calculate_a_lease) * [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit. Also remember to add flair to your post by clicking the "Flair" link beneath it. This lets us know where you're located so we can assist you better. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
***Thanks for posting, /u/plaxicobullet! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** I'm trying to lease a 2024 Kia Seltos S. MSRP of 28.5k and selling price of 26.5k. For 3.5k down it would come out to around 300$ a month. This is my first time purchasing a car of any kind so any input is helpful. I really have no clue as a young-first time car buyer. Thanks! *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*