Two tools sit next to each other on the shelf. Same size, same battery, similar price, nearly the same noise when they hammer. One of them is meant for screws and one is meant for bolts, and swapping them is one of the most common and most expensive mistakes in a tool bag.
Look at the front of the tool
An impact driver has a quarter-inch hex collet. You pull the sleeve forward, drop in a bit, and it locks. Everything it accepts is a hex-shank bit.
An impact wrench has a square anvil, usually three-eighths or half inch, and it accepts sockets. Larger wrenches use three-quarter inch or bigger.
That single detail sorts the two tools completely. The collet is designed for driving. The anvil is designed for turning.
The mechanism is the same, the scale is not
Both tools work the same way. The motor spins a hammer mechanism, and when resistance rises, that hammer strikes a small anvil thousands of times a minute, delivering short rotational hits instead of steady twist. That is why an impact tool can drive a long screw without twisting your wrist the way a drill would.
The difference is scale. A typical cordless impact driver lands somewhere in the range of a few hundred foot-pounds at most, and much of that is designed around fastener sizes used in wood. A mid-torque impact wrench can push well beyond that, and a high-torque model can pass a thousand foot-pounds of nut-busting capability. That kind of force is what removes a rusted suspension bolt. It is also what snaps a deck screw in half without hesitating.
What each one is for
Impact driver. Deck screws, structural screws, cabinet screws, lags with a hex head using an adapter, self-tapping metal screws, general assembly. If the fastener has a bit-driven head, this is the tool.
Impact wrench. Lug nuts, machine bolts, anchor nuts, equipment maintenance, anything socket driven. If you would reach for a ratchet and socket by hand, the wrench is the powered version.
Why the workaround fails
You can buy a hex-to-square adapter and run sockets on an impact driver. Plenty of people do, and for light nuts it is fine. The problems show up at the edges. The adapter adds length and wobble, the driver does not have the torque for a stuck bolt, and the repeated shock on an adapter designed for lighter duty leads to it shearing at the worst possible time.
Going the other direction is worse. Putting a hex bit holder on a half-inch impact wrench gives you far more torque than any screw head can absorb. The result is cammed-out heads, snapped screws, and stripped threads.
Sockets matter more than people think
If you own an impact wrench, buy impact-rated sockets. They are the black ones, made from a more ductile steel and built to flex slightly under shock instead of shattering. Chrome hand sockets are hardened for smooth torque, and under impact loading they can crack and throw fragments. This is a genuine eye-injury risk, not a durability footnote. Wear eye protection either way.
Torque control and safety-critical fasteners
An impact tool is a speed tool, not a precision tool. It gets a fastener seated fast. It does not tell you what torque you landed on.
For anything where a torque specification exists, and especially for wheels, structural connections, and equipment, run the fastener down with the impact and then set final torque with a calibrated torque wrench. Torque sticks help limit over-tightening on lug nuts, but they are a control, not a measurement.
The general habit worth building: impact for removal and for the fast part of installation, torque wrench for the final number.
Buying advice
If you own neither and you mostly build things, buy the impact driver first. It will handle the overwhelming majority of what a carpenter or homeowner does in a week.
If you work on vehicles, equipment, or anything bolted, the wrench earns its place quickly. A mid-torque half-inch wrench is the versatile choice for most people, because it is light enough to hold at arm length and strong enough for most fasteners short of seized suspension work.
If you are buying both, buy them on the same battery platform. There is no reason to fragment your batteries over two tools that often ride in the same bag.
The one sentence version
The hex collet drives, the square anvil turns, and the fastest way to ruin a job is to ask one of them to do the other one's work.