If you are on a tight budget, yet need a reliable vehicle, you may find yourself with two choices; you can either buy a used car or lease a car. Both are cheaper than purchasing a brand new vehicle. If you are in this boat, it is always important to learn the benefits for both options. This can help you make a decision when the time is right. Here are a few of the benefits that buying a used car has over leasing one.
You Get Unlimited Mileage
One of the biggest advantages to buying a used car instead of leasing one when money is tight is that you get to drive your car an unlimited number of miles without having to worry about going over an allotted mileage limit. When you lease a vehicle, you only get a certain number of miles per year. If you go over, you will have to pay the leasing company money for that overage. This can add up quickly if you have a long commute or drive a lot. Buying the car can be the most economical option
You Will Own the Car Outright
Another benefit to buying a used car instead of leasing a car when money is tight is that you are paying for something that you will eventually own. Think of it like buying a home versus renting one. When you lease a car, you are basically renting the car. You will have the option of buying the car at the end of the lease, but you will still owe money for that car, and generally speaking, you pay a bit more for the car by leasing than you would have if you bought it outright. As such, if money is already tight in your home, buying a used car is the better option. You are paying into something you will own, rather than spending money on something you won't.
Your Car Insurance May Be Cheaper
The last advantage to buying a used car instead of leasing one when your budget is low is that you may pay less for your car insurance. Leasing companies often require you to carry high car insurance limits. The primary reason for this is because in many states, if the car is involved in an accident, an injured party can go after both the driver of the car as well as the owner. If you are leasing the car, the owner is the company you are leasing from. To prevent these lawsuits, they require you to carry higher insurance policies which can be pricey. Keep your insurance price low with your limited budget by buying a used car instead of leasing one.
If you need a car but don't have the budget for a new one, or don't want to pay that much, you may be looking to either buy a used car through a place like Jack Burford Chevrolet or lease one. Educate yourself by learning the benefits so you can make the right decision for you.