Varieties of Car Leasing Scams
The number of leased vehicles is increasing day by day and, accordingly, there emerge varieties of car leasing scams. This means that auto lease fraud is a complex phenomenon, which comprises several different manifestations of deceptive scams practiced by the dealer.
Here are the most frequent car leasing scams;
Early lease termination penalties
A manifestation of this fraud is lying a car shopper about the early lease termination fees and penalties. The scenario is the following; the car customer asks the dealer how much money he/she will have to pay as a penalty for terminating the lease early .The dealer assures them they will not have to pay more than a $250 fee. However, this is false information, as the early lease penalties are accompanied by early lease fees and taxes that usually range from hundreds to thousands of dollars. Thus, you should not confuse the small amount of early lease termination administrative penalty with the fees and taxes. If you want to know the amount of money you will have to pay as an early termination fee, you just need to be careful when reading your car leasing documents. This will certainly help you avoid being a victim of auto lease scams.
Offering extended warranties
One of the frequent car leasing scams is offering the car customer an extended warranty. But the thing is that cars are usually leased for 2-3 years period. In most cases warranties given by manufacturers last that long, so is there any need to buy an extended warranty for you leased the car?
Some dealers may appear as sly as to offer you a 36-month warranty for your car the lease period of which is not more than 24 months.
Another manifestation of car leasing scams is the failure to disclose important points of the lease contract. The dealer is sure that you will not be careful enough to read the papers thoroughly. In this case, he will be able to manipulate the facts for his own benefit. For example, there is a major accident with the car in which the lessee has no fault. This is not an obstacle for the dealer, as he may demand large penalties for the damage.
This list of auto lease scam can be continued by other examples of car leasing scams. So be careful not only when buying a car, but also when leasing one.
If you have come across a car dealer scam, contact The Margarian Law Firm at (818) 553-1000 for legal help.