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What is the difference between buying a car with a loan and leasing a car?
Wiki User
∙ 12y 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
Wiki User
∙ 12y ago
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