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.

UPDATED: Jan 28, 2024Fact Checked

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Jeffrey Manola

Licensed Insurance Agent

Jeffrey Manola is an experienced insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for insurance with the most affordable rates available. Not only does he strive to provide consumers with the best prices for insurance coverage, but he also wants those on the market for insurance to ...

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Michael Leotta

Insurance Operations Specialist

Michael earned a degree in Business Management degree with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Au...

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UPDATED: Jan 28, 2024

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UPDATED: Jan 28, 2024

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

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