Leasing a KIA
There are two basic types of leases available in the automobile industry - closed end and open end. KIA offers only a closed end lease. To help you compare the two types of leasing, here is a brief description of each, including advantages offered exclusively by KIA Motors Finance:
Open End Leasing:
Like all types of leases, the end value of the vehicle is established at the beginning of the lease for payment calculation. At the end of the lease the customer, or lessee, has the option of purchasing the vehicle for either the end value determined at the beginning of the lease or the fair market value determined at the end of the lease. Alternatively, the customer can simply return the vehicle to the leasing company. The lessee is encouraged to maintain the vehicle's physical and mechanical condition to keep the highest resale value at lease end. Any portion of the sale price falling short of the end value is the lessee's responsibility.
Closed End Leasing:
Unlike the open end lease, this option does not require the customer (lessee) to "guarantee" a predetermined end value. Instead, the leasing company assumes the risk of estimating the resale price. The lessee agrees to conditions regarding the vehicle's overall condition and kilometer restrictions. Some closed end lease contracts contain an "option to buy" provision for the lessee.