Avoid Car Leasing Scams
1. Make an online research about the car and the manufacturer ahead of going into a dealership. You can get all the information you need together with the invoice cost, the money factor/interest rate, the residual value, additional fees from the manufacturer and special deals and promotions.
2. As you begin the negotiation compare the information you uncover with your research with the ones offered by the dealer. In case the dealership does not present the money factor or residual value terms you’ve uncovered, require a good explanation or find another dealership. Require from the dealer to write the money rate and the residual value on the back of a business card. This will make the dealer responsible for the quote and help you avoid being misquoted the wrong factors.
3. Pay attention to the “net cap cost” when negotiating. The monthly payment is derived from the net cap cost. You may be quoted a selling price, but you have to remember that the capitalized fees and capitalized taxes factor into the net cap cost.
4. Make the calculations for the payment yourself. The most common car leasing scams are that the monthly payment usually being higher than it actually is. The only way to protect you from this is to know all of the factors that go into determining a monthly payment and actually doing the calculations yourself.
Avoid being rushed to sign a contract. Take all the time you need to look over the official procedure and check the numbers even if that means taking it home. The best way to avoid car leasing scams is to sign only when you are sure you have a fair deal.