When to select purchase type (buy, lease, finance) - and when to pay what?

[trnu]

Hi,

with a 12 or whatever months wait time: When do I have to decide about the down payment and what type of purchase I like to make?

For example, interest rates today might be way lower then in 12 month when I get the car (or vice versa).

Any hints, so that I can better understand the process?

Thanks!

 

[NCBill]

No way to lock in rates 12 months in advance. Head to nearby credit unions and start asking them questions. Use the 12 month wait to build up a nice down payment. Go to YouTube and search car leasing. Lots of info out there. No way I would ever lease a car and Kia’s leases are known to be bad.

With interest rates at historic lows, expect them to be higher.

 

[trnu]

So I need the entire money to pay now - is that what you mean?

 

[arattle]

So I need the entire money to pay now - is that what you mean?

You don't need any money until you sign the sales contract. That happens when you pick up the car. Some dealers will ask for a deposit to ensure you're serious about buying the car - usually $500 to $1000. Sometimes it's refundable if you change your mind.

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[MrWednesday21]

If you haven't already done so, yes you'll likely need to put down a deposit for the vehicle so that's step #1. You won't have to make a decision on how to purchase including a down your vehicle until it gets pretty close to picking it up. You can definitely plan on it, but there's no hard decision until the sales contract is bput together. My guess is when a VIN is set, you can start looking at your options. I would have to think interest rates, in general, are going to be higher in 12 months so going to your credit union may not be a great option. But if rates are high, I'm sure Kia financial will do some sort of rebate/incentive to get the rate effectively down to 3-5%. Although I definitely could be wrong about that, but that's my guess based on what other manufacturer's have done in the past. Only other recommendation is to know what your credit score is and do what you can in the next 12 months to ensure you get to top tier credit.