Financed vs. Leased: What’s the difference?

What's the difference between financed vs. leased? The main difference between financing and leasing a car relates to ownership. When a driver finances a vehicle, they're paying for it over time with a loan. Once the loan is paid off, they own the car and can customize, modify, or resell it at any time. With a lease, a driver is essentially renting a car for an extended period (usually 24 months or more). Once the lease term comes to an end, ownership reverts to the dealership.

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UPDATED: May 10, 2022

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