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What is the difference between buying the car with the loan and leasing a car?
Wiki User
∙ 7y ago
When you lease a car, you don't own it as you do when you buy one with a loan.
When Leasing you are only paying for the time you use the vehicle, Imagine the Car cost $10,000 when the car is returned in 3 years time the finance company may say the car is going to be worth $5,000 you are only financed on the remaining $5,000 thus making your monthly payments cheaper,
where as if you buying the car outright then you will be financed for the whole car, add in its depreciation it often works out cheaper to lease the car
Kianna Gislason
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Whats the difference between buying a car with a loan and leasing a car?
When you have paid off the loan the car becomes yours. When leasing a car it never becomes yours.
What is the difference between leasing and buying a car?
Leasing is basically renting. Payments are usually cheaper, but you don't actually own the car. Many times with leasing, you are also REQUIRED to have maintenance done regularly and only done at dealer-approved businesses. If any damage is done to the car, you will be required to pay for repairs. When you buy a car, you make payments until the car loan is paid off, and then you own the car outright.
What is the difference between buying a car with a loan and leasing a car?
When you lease a car, you don't own it as you do when you buy one with a loan. When Leasing you are only paying for the time you use the vehicle, Imagine the Car cost $10,000 when the car is returned in 3 years time the finance company may say the car is going to be worth $5,000 you are only financed on the remaining $5,000 thus making your monthly payments cheaper, where as if you buying the car outright then you will be financed for the whole car, add in its depreciation it often works out cheaper to lease the car
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