EUGENE, Ore. -- When looking for a car, whether you buy or lease depends on what you want to accomplish, Oregon Pacific Bank President and CEO Ron Green said.
Should I lease or buy my next car?
With a lease, you’re going to have the ability to get a brand-new car for a lower payment.
However, Green said it’s important to keep in mind that with a lease, at the end of the two or three-year period, you could owe a residual balance depending on the mileage and condition of the car.
Also with a lease, they do charge you interest -- they call it a money factor -- and beware of what that cost is, Green said.
If your objective is to get a new car with a low payment, a lease is a great option.
On the other hand, if you buy a car, it’s a larger payment, but in four, five or six years, you own the vehicle. After that, there are no more payments and you have an asset of value that you can sell or trade in.
Whether you buy or lease is mostly personal preference.
If you have a banking or finance question for Green, click here.
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