Comments on: What is the difference between a car loan and car lease?

By: Steven W

Steven W — Sat, 21 Nov 2009 01:06:59 +0000

If your mothers car is out on loan she still owes money on it.If she trades it in she still has to pay amount owed on loan.If it is leased she must full-fill the lease agreement or be penalized.She can exchange it or upgrade her lease,or sign a new lease
References :

By: arily666

arily666 — Sat, 21 Nov 2009 00:52:59 +0000

a car loan could be for buying or renting a car but a lease is for renting ....don't you have any documents or sources to help determine what u r dealing with ?
References :

By: steph030772@sbcglobal.net

steph030772@sbcglobal.net — Sat, 21 Nov 2009 00:23:59 +0000

With a car loan the interest is compounded at a daily rate. With a lease you pay interest plus you pay taxes like you would on a house. For a single woman, leasing is more appropriate since you don't get locked into a car note for 4 or 5 years. You only have to keep it 2 years or when you are close to reaching a certain milege, so you can exchange cars before you start having car problems.
References :

By: riverofmydreams

riverofmydreams — Sat, 21 Nov 2009 00:18:59 +0000

leasing a car is a 2 year rental plan with option 2 buy when the 2 years is up.. she can turn it back in after 2 years and not have 2 make payments on it anymore.. but damage, she will have 2 get it fixed before turning it in.. i don't think she can turn it in before her contract is up.. look over leasing agreement or call the place where your dad leased the car from..
References :

By: louie t

louie t — Sat, 21 Nov 2009 00:11:59 +0000

When you lease a car you'll be charged for mileage,scratches and any wear and tear on the vehicle when you return it.
References :

By: Susan M

Susan M — Fri, 20 Nov 2009 23:49:59 +0000

Generally people buy a car with a loan. That is, they give a down payment, and then pay a set amount on the loan every month. At the end of the term of the loan, the person owns the car outright. You could take it in and use it as a down payment for a new car.

If you lease a car, you pay each month for a set amount of time, but you do not buy the car. It never becomes yours under the terms. You have to turn it in at the end. Then you don’t have a car or a payment. You can buy a new car with a loan or lease another car.

I have never leased a car so i don’t know how damage is handled. You may need to find the original documents and figure it all with your Mom. I’m sorry your Dad is gone. There are a lot of hard adjustments.
References :

By: jackieblue411

jackieblue411 — Fri, 20 Nov 2009 23:18:59 +0000

with a lease there is usually a big down payment with lower monthly payments and a big payoff to keep the car at the end of the lease, but they cover most maintainence and repairs…

now with buying a car with a loan….you are on your own. you can put down as much as you want and make payments unitl the loan is paid off, then the cars is all yours…usually 5 or 6 years on a new car.

also, with a lease you usually need really good credit. if you think you will want to always drive newer cars and upgrade alot then a lease might be the way to go….good luck
References :

By: ptaewk

ptaewk — Fri, 20 Nov 2009 23:12:59 +0000

The car is not her’s yet…it is loaned to her until she can pay off that loan.
If you return the car, you will have to pay for the damage on it.
References :