First time lease(Kia) or used car loan

[KAISMOM]

Back Story: Owned 4-5 cars in the past 25 years, all bought used, cash, under 4k (Honda, Saturn, Subaru, Toyota)

I try to live within my means, and it's only been the past 16 years of having credit cards that I've incurred any debt. My current car: Saturn Ls2, driven 30k miles over 9 years (I rent cars when I go on road trips and weekend escapes) It's been steady, minimal repairs,  I now feel unsafe in it and cosmetically it's a mess, since it needs new brakes, It's time for another. 

I anticipate being out of the country in 2020 for some months. Looking for a 24 month lease/loan. I'm considering a used Prius under 8k, or a 24 month lease. Looking only for a hatchback, good mileage, resale value, saftey. I recently rented a Kia Soul and felt good in it so now I'm considering a lease. 250 max monthly no more than 2k down. Limits me to a car <20k, Honda fit, Kia Soul. A car I can even sleep in during my gypsy faze. During a normal month I drive max 400 miles, which can mean during months of travel I have a miles surplus. Also for 2018 I will write off monthy payments for my business, which will help offset costs.

I need advice since I've had neither a used car loan or a lease before. I've read horrible things about both Kia Finance, Honda, Toyota online.

For the loan, credit union asked for tax returns, for lease, Kia for example, wants bank statements, or other proof (child support). Minimum 1.8k gross income. Stats: tier one, Ficos across board, 760. Self-employed, income varies month-to-month, 2.5k-6k.

Advice appreciated!

[Anonymous]

I am not an expert on leases, but in your situation with the mileage you drive a lease may make sense.. But with your history of owning car's for quite awhile, it may even make more sense to do what you have been doing and search for a under 10k good reliable used vehicle such as a Honda or Toyota that you can afford to pay off within 2 years. A car like this could last you 5-10 years and you will own it after 2 years, rather than a lease that you must return or purchase after the lease ends.

I would personally stay away from Kia, as you mentioned that brand, for the reasoning that their resale values are less than desireable. Two brands that come to mind with horrible resale values are Kia and Hyundai.

A quick search on Carguru's netted me a result of a 2013 Honda Fit with only 17k miles that the dealer is asking 8900 for. That car could last you a VERY long time and will not break the bank.

I don't think that with your scores, as long as you have comparable car credit history, paired with your up to 2k down payment, that income will be an issue. I would be surprised if a bank/CU even stipulated for proof, although I guess there are some local, very conservative CU's and banks.

[KAISMOM]

Thanks, Semo, sage advice! And I concur with your reasoning!!! Though in the case of Kia (Kia Soul+) it would be a lease, so I wouldn't be too worried about resale value in this instance. I live in L.A and a 2013 private seller, Honda Fit Sport, first owner will run me slightly under 9.5k. My concern is whether it's a lease or a loan, I'm not planning on being in the country for a 12 month period and 9k-9.5k paid off in 2 years isn't doable for me. Of course, my plans could change, but I have no idea where I'll be living or what I'll be doing. Which is why the lease, (maybe the only time I'll ever do it), might make sense this time around. When I'm done with the lease I don't have to worry about where I'll park it, insurance. either way, loan or lease I'll write off the car payment since I'll be driving it mostly for work (self-employed) anyway.

So if I go the route of Kia anyone here familiar with how the leasing process (with Kia) goes? Do they use Auto enhanced, 5, 8 or 9 when they check credit? I should be fine, my Auto enhanced scores range from 765-779(Experian) depending on what score they'll use. So that should qualify me for Tier one credit. I know this is a side point but this pertains to a more general question. Kai has gap insurance built in (supposedly) But I'm considering adding something else to the lease so I don't have to worry at lease end (assuming I won't refi) wear & tear. Has anyone done this?  I'd like to get it mostly for peace of mind. I hear with most leases they can be sticklers about every little nick.