When you buy your car, you pay for the entire cost of a vehicle,
regardless of how many miles you drive it. You typically make
a down payment, pay sales taxes in cash or roll them into
your loan, and pay an interest rate determined by your loan
company. You make your first payment a month after you sign
your contract.
When you lease your car, you pay for only a portion of
the vehicle's cost, which is the part that you "use
up" during the time you're driving it. You have the
option of not making a down payment, you pay sales tax only
on your monthly payments (in most states), and pay a money
factor that is similar to the interest rate on a loan. With
leases, you may also pay extra fees and possibly a security
deposit that you don't pay when you buy. You make your first
payment at the time you sign your contract.
Everyone wins with lease transfers. The person dumping the
lease may get out for far less than he would have with his
original company; the person assuming the lease stands to
find a great deal. The leasing companies are happy, of course,
because they'll continue to collect monthly payments.
Lease Car Sales
are easy to find at LeaseTrader.com
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