When it comes time for you to buy a car, you’ll have lots of decisions to make before you even set foot on the lot. One of the most basic and important of these is whether to buy a car or simply lease. While the difference between owning and leasing may seem negligible or worse, overly complicated, having an understanding of the ins and outs of car ownership options is essential if you want to spare yourself a potential headache down the road and come out on top. If a lease agreement makes you scratch your head as much as a loan document, here are some basic things to keep in mind when you head into the dealer’s office.

To lease or not to lease?
One of the first questions on your mind when embarking on your journey is why bother leasing when you can own? The truth is there is no hard-and-fast answer, no magic bullet that will lead you to the perfect car arrangement. Rather, it depends largely on a number of factors that are unique to you and your situation. The U.S. News & World Report stated that leases tend to come with lower monthly payments than do purchase agreements, so if money is a primary concern a lease may be a better option. 

That said, leases tend to come with their own restrictions. Since you don’t technically own the car, you’ll often find your lease comes with a set of restrictions on everything from how often you need to have maintenance performed to how many miles a year you can drive it. 

You’ve signed the lease, now what?
If you decide that leasing your dream car is right for you, make sure to stay on top of your regularly scheduled maintenance and your yearly mileage limits as defined by your lease in order to avoid potentially costly penalties come the end of your lease. 

Another thing to keep in mind is what will happen when your lease comes up. Edmunds outlined a few guidelines to consider that can help steer you toward your decision to either buy out your lease or turn it in for something else at the end of your term. This means you’ll have to roll up your sleeves and dive into the nitty gritty of things such as the car’s residual value – how much your car is worth at the end of your lease – and its market value – what it’s currently worth.

When you’re ready to pick up your new car, head to NJ State Auto Auction. You’ll find hundreds of Carfax-certified​ automobiles on the lot, and an in-house finance team to help make your used car, truck or van affordable.