whats the difference between getting a car on credit and leasing it???

Question

whats the difference between getting a car on credit and leasing it???

Answer 1

Leasing is like renting it.You just pay so much a month(A good Tax write off but nothing else)Getting it on credit means you own it in the end but your gonna pay a lot for it.Good Luck!

Answer 2

Leasing is an alternative form of financing. Both have fixed terms and payments. With a purchase you finance the whole price of the vehicle and pay that amount, plus interest, back to the finance source. With a lease you also finance the full price of the vehicle, and pay all the interest. You only repay part of the principle of the loan. A lease has an estimated value of the vehicle at the end of the lease term. (Residual value) This is deducted from the principle and you only pay the difference in your monthly payments.

For example:

Assume a vehicle that costs $30,000 and a trade in worth $5000. Also assume you are financing, or leasing the vehicle for 5 years. A final assumption is that at the end of the 5-year period, the vehicle is worth $7500.

With a purchase you would pay back $25,000 plus interest over the period of the loan. You would own the vehicle (worth $7500) You can keep it, or trade it in on a new vehicle

With a lease you pay back $17,500 ($25,000- $7500 residual value), and the interest that is charged on the $25,000.

Your payment is less, but at the end of the term you have nothing!

With a lease there is a limit on the number of miles you can drive and a per mile charge after that. You are also responsible for any and all damage to the vehicle. At the end of the lease, when you turn the car in, you will have to pay for any and all damage and over miles charges!

With both a lease, and a purchase, you are responsible for all maintenance. Some leases, but not many, may have a maintenance program, but that does cost extra, and will increase your monthly payment.

Answer 3

Leasing is renting. you only can put so many miles on a month. and pay a monthly fee (like a car payment) at the end of the lease you have the option to buy.

leasing is based on your credit.

now financing a car is buying it through a loan given to you by a bank. they hold the title..you must carry full coverage insurance. you pay them monthly for the car.. unlimited miles and useage. when the cars paid in full..its yours

Answer 4

leasing is just renting
credit is the credit company lending you money to buy it - with interest of course