what is the different between buying a car with lease payment and buying a car with finance payment.
2006-08-21 05:07:38 · 4 answers · asked by Anonymous in Business & Finance ➔ Credit
Ok heres the deal. When you lease you are left with options. So lets say you lease a car for 36 months. When you make you last payment you can take the car back and walk away, trade it in on a new car , pay it off and buy it, or sell it. Now when you finance you can either keeo the car till you pay it off, sell it or trade it it. Now you might think to your self well it sounds like the same as a lease. Its not. because when you lease the dealer will tell you what the car will be worth when the lease is up. There are four things that come into factor when trading a car. Milage,condition,market,insentives. Now you control two of those. So when you lease the maker takes the other two out of play by telling what it will be worth when the lease is up. Now the last time you went and bought a car did they tell you hey when you brings this back we will give you this? And have it in writing? I don't think they did. I lease all of my cars. Because the average person keeps a car for 3 years or less.So with the lease you will be in a new car all the time. Plus the payments for a lease are always lower then traditional financing. So those are the differences of a lease and finance.
2006-08-21 07:50:41 · answer #1 · answered by Matthew L 1 · 0⤊ 0⤋
When you lease a car you return it after the lease is done, usually 24,36, or 48 months. When you finance a car it belongs to you after you make the last payment.
A lease is similar to renting.
2006-08-21 05:16:28 · answer #2 · answered by WOODY 1 · 0⤊ 0⤋
If you lease a car, you're essentially renting it for a period of years. It's not yours at the end of the time - you either have to give it back, and maybe pay additional money if you've driven over the allowed mileage. Financing a car means borrowing money to pay for it, generally means you're buying it, so at the end of the payment period, it's yours.
2006-08-21 05:18:45 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
You would better ask specialists about this. If you live in LA, call LA Autostore. Or choose another company, as you wish
2016-07-13 21:56:00 · answer #4 · answered by captainhavana.jackpot 1 · 0⤊ 0⤋