Car Leasing Scams
Leasing a car may not be in your best interest; however, auto dealers don’t want you to know that. They often employ tricky maneuvers to tempt you to lease rather than purchase. It’s essential to educate yourself on all the ins and outs of leasing so that you can evaluate and make your own decision without “assistance” from the dealer. Below we discuss most frequent car leasing scams used by auto dealers. Any one of these could cost you a lot of money. Imagine how bad it could be if a dishonest dealer combined more than one of these car leasing scams!
1. The dealer offers to take your current car as a trade in, pay off your loan balance on that vehicle (no matter how much is still owed) and lease you a better car than the one you have for lower payments.
So what will happen in this case? The dealer will pay off your old loan as stated. However, he will make the assumption that you owe more on your current car than what it’s worth for a trade in, the dealer will credit the value of the trade in against the price of the new car then add on the rest of the loan balance you owed to the price of the new vehicle.
2. The dealer will convince you that lease payments are considerably lower than the payments for purchasing a car.
While it may seem like what the dealer is saying is true about the payments, they aren’t telling you the whole story. Leasing a vehicle is only beneficial to those who drive less than 15,000 miles a year and live close to the dealer. If you don’t meet these two criteria, then probably leasing is not in your best interest. Additionally, dealers will normally increase the lease term from two or three years out to five, in order to lower the monthly payment even more. Leasing for five years as opposed to two or three exposes you to potential expensive repair costs that aren’t covered after the two year warranty expires. And all that for a car that you don’t even own. And of course none of these important details will be disclosed to you by the dealer. It’s in the fine print.
These are quite common car leasing scams you should be aware of. Be an educated car buyer or leaser not to fall for them.