HONOLULU (HawaiiNewsNow) - On today’s Smart Money Monday, we discuss whether its better to lease or buy a car with Taylor Kirihara from Bank of Hawaii.
Just like cars themselves, there’s not one right answer for everyone. It really depends on lots of factors that vary from person to person.
Generally speaking, with a lease you may pay a lower down payment and monthly payment, repairs are typically covered by a warranty and, once the lease is up, you can simply walk away.
When buying a car, the down payment and monthly loan payments for a car purchase are usually higher than a lease, if you’re someone who likes to hold onto a car for 7 plus years. That gives you enough time to pay off the car loan and still drive the car for years with no payments.
Plus, if you own your car, you can give it to a relative or a friend. And, since there’s equity in the car, you can sell it or trade it in for a new car.