A Kia Soul Lease: Everything You Need To Know
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The Kia Soul is a vehicle that drips with personality. The toaster-shaped SUV possesses a blend of personality and versatility and has outlasted most of its boxy rivals like the Honda Element and Nissan Cube.
Aside from buying it with cash, one of the best ways that you can get behind the wheel of the Kia Soul is to lease.
Wondering if a Kia Soul lease is for you? You’ve come to the right website. Today, we’re going to talk about the things you should know when getting a Kia Soul lease.
What Does It Mean to Lease a Kia Soul?
Leasing a Kia Soul is fundamentally different from purchasing one, and it has its benefits and drawbacks. When you lease a vehicle, you’re entering into a long-term rental agreement with the dealership for a specified term (typically a few years). Unlike with standard car loans, you don’t own the vehicle by the end of the lease.
During the lease, you’re allowed to drive the Soul a certain number of miles, usually between 10,000 to 15,000 miles per year. You can negotiate for more miles, but it’ll also bump up your monthly payments.
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How Does a Kia Soul Lease Work?
Leasing a Kia Soul involves signing a lease agreement, the document containing the terms and conditions of the lease. This agreement details, among other things, the duration you get to “rent” the car, mileage restrictions, monthly payments you need to make. In addition, additional charges such as an acquisition fee, mileage overages, termination fees, excess wear, and tear, etc., are also included in the contract.
Your monthly payments cover the Soul’s depreciation cost while it’s under your care plus fees, interest, and taxes. Since you’re only paying for the depreciation, as opposed to the full price of the Kia Soul, the monthly payments are lower.
Here’s an example, based on the Kia Soul’s MSRP of $20,000. Let’s say the Soul is estimated to have 60% of its original value after a 36-months lease and reads 36,000 miles on the odometer. By the end of the lease, the Soul had depreciated 40% or $8,000. Throughout the lease, your monthly payments cover the $8,000 depreciation cost plus fees and taxes - and the total spread over 36 months.
As the lease expires, you’re expected to return the Soul in good condition. Otherwise, expect additional fees for excessive wear and tear charges. Also, going over the mileage restriction will cost you extra as well.
Why Should You Lease a Kia Soul?
Let’s be real; leasing is not for everyone. It has its fair share of drawbacks, and many of them are non-negotiable for many customers - namely, the fact that you’re essentially renting the vehicle as opposed to owning it. However, many people choose to lease a car because of the following reasons:
- It’s more affordable: Modern vehicles are not getting any less expensive. For customers on a tight budget, leasing is one of the least expensive ways to drive a new vehicle. Leases tend to have lower monthly payments, as much as 30% lower than auto loans.
- Drive the latest models and trims: For drivers who love the latest and greatest models and trims with cutting-edge features and tech, leasing is a solid option. Since you’re paying less than you normally would with an auto loan, you have more budget wiggle room to afford higher models and trims. In the Soul’s case, you can opt for a Turbo trim with a 1.6L 4-cylinder turbocharged engine.
- Lower maintenance cost: A lease on a new Kia Soul means that it’s less likely to require major repair and maintenance. Your lease will probably just expire without any significant issues. Plus, even if your Soul may require repair while under your lease, it’s almost always under factory warranty.
- No resale hassle: Since you’re going to return the vehicle at the end of the lease, you don’t have to deal with the hassle of reselling. Generally, leases are easier to exit, provided that there are no additional charges. You may simply drop the Soul at the dealer and move on to your next vehicle.
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Kia Soul Lease: Key Numbers You Need to Know
Below are some numbers that deserve your special attention.
Sale Price
Monthly lease payments are based on the sale or purchase price of the car. Similar to buying a car, the lower the sale price, the lower the monthly payments. Thus, it’s in your best interest to get a fair sale price for a new Kia Soul, so make sure that you do your research beforehand.
Just like when buying a car, negotiate the sale price with the dealership to a lower amount than the manufacturer’s suggested retail price (MSRP).
Residual Value
Another critical part of any lease deal is the residual value. Basically, the higher the residual percentage, the lower the depreciation cost you have to pay. Also, the residual value is the amount that you need to cover in case you wish to purchase the Soul at the end of the lease.
Mileage Restrictions and Overage Charges
As mentioned earlier, there’s a set annual mileage allowance that you need to follow unless you want to pay for expensive overage charges - typically, 15 to 25 cents per mile. If you’re a frequent driver, you’ll want to add extra miles into the agreement for a minimal increase in your monthly payments - a whole lot cheaper than paying for mileage penalties.
However, if you do exceed the allotted miles but have decided to buy the Soul, the overage charges will be waived.
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So you’re in the market for a used vehicle? We’ve gone ahead and prepped some essential questions to ask when buying a used car.
Money Factor
Think of the money factor as the equivalent of the annual percentage rate (APR) in traditional auto loans. Just like with car loans, you want the lowest possible money factor. However, leases, in general, have a higher money factor.
Disposition Fee
This fee is charged by the lessor (the company you lease the car from) to pay for the expenses incurred with cleaning and selling the vehicle. The typical disposition fee ranges from $300-$400. Unless you buy or lease a new vehicle from the same brand, you can’t avoid paying this fee.
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