Hi, I am really confused that what is a car loan and a car lease? may u coculate to me? if a car 40,000 ?

Question

Hi, I am really confusd that what is a car loan and a car lease? may u coculate for me? if a car that cost 40,000.

Answer 1

It might really save you hassle to just get an auto loan quote on the web to check out what the going rates are.  You might be pleasantly happy.  Also if your credit is not so great, a lot of online loaners are more willing to work with you.



What I always tell friends is that an online quote at http://auto.lowratetoday.com is worthwhile.

Answer 2

Coculate is not a word.

Answer 3

With a lease, you have lower payments but only pay for the amount by which a car depreciates in value during the time you lease, plus finance charges. You return the car at lease-end. You (usually) have no ownership equity.

With a loan, you make higher payments, part of which goes to depeciation, and part to building up some ownership equity, plus finance charges. You can keep the car at loan-end, but it's value is only whatever is left over after depreciation.

Here is a calculator that you can use to compare the cost and payments of a loan versus a lease:

http://www.leaseguide.com/leasevsbuy.htm

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Answer 4

Car loan is for when you BUY.

LEASE is just another name for LONG TERM RENT.  They use similar formula but you do not OWN a leased car.  You pay for "depreciated" value of the car (or how much the car lose value during the time you lease it).

So if you were to LEASE a car that is worth $10K (for ease of calculation), and you plan to return it with a value of just $4K, then the car lost $6K value.  So if you leased it (rented) for 3 years, you would have to pay about $2k (plus some profit margin for the lease company).

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If all that confuses you, don't lease.  There's a lot of places where dealer can scam you when you lease.  

I OWN 2000 Audi A4 and 94 Civic.  They are paid off long time ago.  I don't make a single payment any more but still have the car. With lease, it is endless car payment.

Good Luck...

Answer 5

Auto Loan = You BUY car.  Once you pay it off its yours.

Also, a good site is...

http://www.surveyland.org/jump.php?link=...

All the best to you.