Car Leasing Scams

Car-leasing has been lauded as an even more attractive alternative to buying, offering in the process the overall flexibility to push a new car for less. The fact, however, is that leasing is an option that is fraught with many pitfalls for the regular customer. Leasing regulation will not require as much disclosure as buying a vehicle. This has bring many leasing scams that strategy the customer into thinking they are into a good deal when, in effect, all he is getting is a tough deal on the dealer's terms.

Here we look at many of these common scams and how to prevent them

Artificially low interest rates:

Some dealers offer a lower interest rate when in reality it can much higher. Cash by either purposefully quoting the money factor as the eye rate or figuring out the money without amortizing some closing fees, like the security deposit, into the loan lease. Have those money
factor for example: this is typically expressed as a four decimal digit, something like 0. 004. Some sellers quote this as a 4% interest rate when in fact you need to multiply it by 24 to get a rough idea of interest amount rate on your loan. Through this example, the interest rate is a much higher 9. 6%
than the "quoted" rate of 4%. Make sure you crunch the numbers and be familiar with formulation they use to compute their interest rate. Appearance out for any fees not factored into the calculation. If you are not satisfied, do not enter into the rent agreement.

Terminate your rent early for a low fees

This is an all-time leasing scam. You ask your dealer how much you are going to pay if you wish to terminate your rental and he notifys you: "You want to get out early? Sure thing, you only pay an early on termination payment of $300". What he is citing is merely the small management penalty of early end of contract, we have a much stiffer fee called early termination payment which runs
into hundreds of dollars.
Will not mistake the early termination management penalty with the end of contract fee. Read the small print carefully and know exactly how much you will definitely get charged should you eliminate your lease before their scheduled end.

Pay for an extended warrantee you don't need

This is another shell game to inflate the dealer's revenue at your expense. The dealer slides an extended-warranty into the deal although it's already factored into the monthly payments, or he tricks you into buying a 36-month warrantee on a 24-month rental. You do not have to pay extra money for a warrantee already built into your obligations or for the one that should go well beyond your rental term. They could slip an extended warrantee in. May be fooled, the warrantee is already factored in.

Zero security deposit

Any seller who advertises a $0 security deposit is not suggesting the whole history. A security deposit is always factored in the lease under the supply for disposition fees.