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What's a cheaper option, leasing or buying a used car?
My vehicle was totaled and I received a pay out of $9,000. I'm facing financial hardship and can't spend more than that. Does it make more sense to lease or buy a used car?
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“While there are pros and cons to both
leasing and buying a car
, it would likely make more sense for you to buy a used car.Since you’re facing financial hardship, buying a used car for the amount of money you have means the vehicle is paid off. You won’t have to worry about a monthly lease payment. If you’re struggling now, you don’t want to add an additional expense.
In addition, leasing a car will also require you to carry full coverage car insurance, which can cost hundreds or even thousands more annually than the liability insurance you could get with a used car.
Although it may seem risky to
buy a used car
, there are plenty of reliable used cars. To determine what vehicle is best for you, do your research.Resources like Kelley Blue Book and Edmunds can help you determine a fair price for a used car and provide guidance on what to look for. Or if you want to review vehicles, Car and Driver, CarGurus, and DealerRater are all trusted, reputable sources.
You’ll also want to check the cost of
car insurance
on any vehicle you’re considering. This way you can be sure you’ll be able to afford the cost of insurance on it as well. If possible, try to budget your insurance cost into the $9,000 that you have. If you pay in full for six months or a year, it would be one less expense to worry about.To save even more cash, take a look at
Jerry
. As a reputable insurance broker, Jerry allows you to compare rates from over 50 insurance companies to ensure you always get the best rate for your used car.”View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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