Hi, I am really confused that what is a car loan and a car lease? may u coculate to me? if a car 40,000 ?

Question

Hi, I am really confusd that what is a car loan and a car lease? may u coculate for me? if a car that cost 40,000.
I put down the down payment 20,000 then I just pay for every month? for what? and what about at the end? If I want the car? how much should I pay? what is that the every month's payment? and is that every month count into the 40,000? Thanks to reading !!

Answer 1

Auto Loan = You BUY car. Once you pay it off its yours.
Auto Lease = You're RENTING a car. Once you pay off the lease, they take back their car and you end up with nothing.

Both require a down payment.

It's that simple.

.

Answer 2

a leese is when u get screwed at the end basically. U pay month to month and after about 39 months or just around 3 yrs u have a balloon note like 18,000 left after refinancing fees and such. Its not a good idea if u drive alot. U will pay for the extra miles yeahh your only alloted certain amount miles in ur term of leese. It could be costly and u have to keep the leesed vehicle in near perfect condition when u return it. the only peace of mind is you already know the problems with it when and if u refinance the baloon note at the end of the lease terms. If you have 20000 then buy the dam thing 20000 financed over 36 months or 3 yrs will be about 5-600 / month if its a 40000 dollar car it should last forever.........so id purchase it for 4-5 yrs for a lower payment if thats a concern when it comes to making a 600 dollar payment for 3 yrs. u will retain the value if u buy the car and have something to bargain with if u want to buy another when ur done paying for it or even in the middle of the note with a 20000 dollar down payment.

Answer 3

In a car loan, you are paying for and buying a car. When the last payment is made, it's yours, free and clear.

In a car lease, you are making a monthly payment on the use of the car, but you are not buying it. At the end of the lease period you can then buy it if you want, or turn it in and get something else that you can "rent" use on.