Mar
23
What’s the diference between “retail lease” and “retail finance” to buy a car?
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I’m 15 and I’m confused about terms like retail finance and retail lease,could you please explain me? actually I just know in many cases the retail lease payments are lower than retail finance.
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2 Comments
March 26th, 2010 at 4:08 am
a lease means you don’t actually own the car. at the end of the term you have to give it back or make a payment of what the car is currently worth to keep it.
finance means you are leant the money to buy the car. there are many options usually a big deposit up front or a balloon payment at the end.
March 28th, 2010 at 5:36 am
When you “lease” a car you are basically renting it. After the terms of your contract are up you either have to give it back or pay off what the car is worth. The other way is you are borrowing money to purchase the car. When it’s all paid off, the car is yours.