---
id: faq-0021
title: "What's the difference between a loan term and a lease term?"
category: faq
subtopic: financing
page_type: faq
source_url: "https://www.castlechevynorth.com"
tags: ["lease-vs-buy", "terminology", "contract-length"]
questions:
  - "How long is a lease vs. a loan?"
  - "What's the difference between loan and lease terms?"
  - "How many months is a typical lease?"
related: [lease-terms-explained, purchase-financing, mileage-and-wear]
dealer: Castle Chevrolet North
---

**Loan term** is how long you borrow money to buy the car-usually 24-84 months. After the term ends, the loan is paid off and you own the vehicle outright.

**Lease term** is how long you rent the vehicle-typically 24-48 months (2-4 years). When the lease ends, you return the car to the dealership; you never own it.

**Key difference:** A loan builds toward ownership; a lease is temporary. With a loan, you keep the car forever once paid off. With a lease, you get a brand-new vehicle every few years but never build equity.

Choose a loan if you want long-term ownership and unlimited freedom. Choose a lease if you prefer new cars with warranty coverage and predictable payments.

Our Finance team can walk you through both paths for any Chevrolet. Call **(847) 439-0900** to compare lease terms and loan terms for your perfect fit.