My mom wants to return her vehicle and she says it's out on a loan. My parents never bought a car, and now that my father passed away, she turns to me for what to do. She wants to know if she can just go and turn it in and pick out a new one or will she have to pay more for some damage to the vehicle! Please help. Serious answers only!
2006-11-17 19:47:34 · 10 answers · asked by vetsmom_rgv 3 in Cars & Transportation ➔ Buying & Selling
with a lease there is usually a big down payment with lower monthly payments and a big payoff to keep the car at the end of the lease, but they cover most maintainence and repairs...
now with buying a car with a loan....you are on your own. you can put down as much as you want and make payments unitl the loan is paid off, then the cars is all yours...usually 5 or 6 years on a new car.
also, with a lease you usually need really good credit. if you think you will want to always drive newer cars and upgrade alot then a lease might be the way to go....good luck
2006-11-17 19:54:06 · answer #1 · answered by Jen 3 · 3⤊ 0⤋
Some of the previous answers are misleading. Car leasing is not car renting. It's often confused with apartment renting/leasing. If you know you like to change cars every three or four years, have a stable lifestyle, don't want to customize your car, drive an average number of miles per year (15K miles), and feel that you will stick with the lease until the end, then leasing can save you money on monthly payments -- up to 60% over loan payments. Why? Because you only pay for the car's estimated loss in value (depreciation) during the time you drive it -- plus finance fees -- then you return the car. If the car loses more value than expected because your drove more miles than expected, damaged the car, or didn't maintain it, then you pay extra at lease-end. Essentially, with leasing, you pay for what you use. With a loan, you pay for the entire car, whether you use it up or not.
2016-05-22 00:27:06 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Generally people buy a car with a loan. That is, they give a down payment, and then pay a set amount on the loan every month. At the end of the term of the loan, the person owns the car outright. You could take it in and use it as a down payment for a new car.
If you lease a car, you pay each month for a set amount of time, but you do not buy the car. It never becomes yours under the terms. You have to turn it in at the end. Then you don't have a car or a payment. You can buy a new car with a loan or lease another car.
I have never leased a car so i don't know how damage is handled. You may need to find the original documents and figure it all with your Mom. I'm sorry your Dad is gone. There are a lot of hard adjustments.
2006-11-17 19:55:13 · answer #3 · answered by Susan M 7 · 2⤊ 0⤋
1
2016-09-26 06:34:59 · answer #4 · answered by Leonard 3 · 0⤊ 0⤋
With a car loan the interest is compounded at a daily rate. With a lease you pay interest plus you pay taxes like you would on a house. For a single woman, leasing is more appropriate since you don't get locked into a car note for 4 or 5 years. You only have to keep it 2 years or when you are close to reaching a certain milege, so you can exchange cars before you start having car problems.
2006-11-17 19:59:46 · answer #5 · answered by steph030772@sbcglobal.net 1 · 0⤊ 0⤋
leasing a car is a 2 year rental plan with option 2 buy when the 2 years is up.. she can turn it back in after 2 years and not have 2 make payments on it anymore.. but damage, she will have 2 get it fixed before turning it in.. i don't think she can turn it in before her contract is up.. look over leasing agreement or call the place where your dad leased the car from..
2006-11-17 19:56:34 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If your mothers car is out on loan she still owes money on it.If she trades it in she still has to pay amount owed on loan.If it is leased she must full-fill the lease agreement or be penalized.She can exchange it or upgrade her lease,or sign a new lease
2006-11-17 20:01:19 · answer #7 · answered by one10soldier 6 · 0⤊ 0⤋
The car is not her's yet...it is loaned to her until she can pay off that loan.
If you return the car, you will have to pay for the damage on it.
2006-11-17 19:52:03 · answer #8 · answered by ptaewk 2 · 1⤊ 0⤋
When you lease a car you'll be charged for mileage,scratches and any wear and tear on the vehicle when you return it.
2006-11-17 19:55:56 · answer #9 · answered by louie t 1 · 2⤊ 0⤋
a car loan could be for buying or renting a car but a lease is for renting ....don't you have any documents or sources to help determine what u r dealing with ?
2006-11-17 19:59:51 · answer #10 · answered by dogpatch USA 7 · 0⤊ 0⤋