What are the major differences from leasing a car to financing a car?

Answer 1

financing- you make payments for usually 4-6 years- after that you OWN the car

leasing- you make payments for 2 years, then turn the car back in- you do not own the car. however, leasing usually has a much lower monthly payment

if you plan on getting a new car within a few years leasing might be a good option for you, if you would like to keep the car for many years, you should consider financing


hope this helped. good luck!

Answer 2

You did not phrase the question correctly, because you can lease or buy a vehicle, and either finance or not finance the lease/purchase. So, without knowing what you really meant, here goes nothing:

If you can't afford to pay for the vehicle up front, then you will need to finance your purchase. Financing usually involves interest payment(s) (there are some zero percent payments available, but they usually have catches or fees). Failure to pay the principle and/or interest at the contract will lead to poor credit, which could mean trouble in the years ahead.

However, I know of some people who *could* afford the purchase or car, but choose to lease and/or finance, so that the bulk of their savings are kept in the bank (think of it like rent; you pay a little bit over time rather than one, big, lump sum, which may drain your finances).

If you can't determine whether you can afford it or not, and/or whether you need to finance, then you probably shouldn't consider it at all. Or, spend money on a financial advisor.

Answer 3

Lease = rent.
Finance = ownership.

Leasing MIGHT cost you less per month if you have excellent credit but is NOT a wise choice for 95% of consumers. There's a case to be made for business use where the annual mileage is easily predictable but for most private buyers leasing is a terrible idea.

Answer 4

the main difference is ownership after you make your payments on a lease the car still isnt yours.. after your financing period is over the car is yours free and clear