Top 5 Car Leasing Scams And Their Practice
Like in the case of car purchasing car leasing also has its dangers. If you are going to lease a vehicle from a dealership be ready to face the numerous car leasing scams.
The Top 5 Car Leasing Scams
- The first common car leasing scam is when the dealer tells you that you have too low a credit score. If you have a low credit score, you will pay higher interest rates to get the lease deal. Even if you have a high credit score a dealer will try to cheat you. Thus, it will be better for you to find out what your credit score is BEFORE entering the dealership. One of the most common car leasing scams is advertising special equipment and add-ons for the vehicle. This scam works in the case of car buying, too. The dealer is very likely to offer extended service contracts, rust-proofing, window-etching and other services. Such services usually cost a whole lot of money to the unsuspecting buyers and lessees.
- Another common car leasing scam is convincing the lessee that rebates or price discounts do not work when leasing. This is not true. You have the right to negotiate the car price as leasing is not based on “sticker price”.
- Some dealers may try to make you lease a vehicle by telling you lies about lease terms. For example they may tell you that you can return the car whenever you want. However, this is not true; if you return the vehicle until the lease end, you will have to pay huge early lease termination penalties.
- Finally, the last scam that is not less common car leasing scams is when the dealer tells you that leasing does not show any debt liabilities in your credit history. Do not believe this, as leasing is one way of car financing like loan payment is. This means that if you pay the monthly lease payments late, you may ruin your credit history.
The list of car leasing scams is not limited with these tricks and scams. Dealers commonly practice much more interesting things.
We regularly update our base by information about car leasing and the potential risks you may face as a buyer or a lessee. Read more on the topic here.