You own the car and get to keep it at the end of your payments.
You do not own the car, you just rent it. At the end of the lease, you
can choose to
return it or buy it.
Monthly loan payments are usually higher than monthly lease payments because you are paying for the entire purchase price of the car, plus interest and other finance charges, taxes and fees.
Monthly lease payments are usually lower than monthly loan payments because you are paying only for the vehicle's depreciation during the lease term, plus rent charges (like interest).
You are responsible for any pay-off amount if you end the loan early.
You are responsible for any early termination charges if you end the lease early.
You may have to sell or trade the vehicle when you decide you want a different vehicle.
You may return the car at lease end, pay any end-of-lease costs, and as they say, "Walk away."
You may drive as many miles as you want, but higher mileage will lower the vehicle's trade-in or resale value.
Most leases limit the number of miles you may drive (often 15,000 per year). You can negotiate a higher mileage limit and pay a higher monthly fee.
There are no limits or charges for excessive wear to the vehicle, but will lower the vehicle's trade-in or resale value.
Most leases limit wear to the car during the lease term. You may likely have to pay extra charges for exceeding those limits if you return the vehicle.
End of Term
At the end of the loan term (typically 3-5 years), you have no further loan payments.
At the end of the lease (typically 2-4 years), you may have a new payment either to finance the purchase of the existing vehicle or to lease another car.
Bad Credit Network helps you find a dealer that will assist you in purchasing a vehicle if you have very bad credit. If you decide that leasing is the correct option for you, contact your local new car franchise dealerships to see if they offer leases for customers with poor credit. Leasing a car with poor credit can be more difficult than obtaining a loan to purchase a vehicle due to the fact that often a down payment is not require. In addition, the outstanding amount owed on a lease nearly always exceeds the worth of the vehicle for most of the lease term.
If you are looking to get financing to purchase
a car with bad credit, click here to apply
. Get a response the same day.