Research your auto leasing terms carefully before you sign on the dotted line.
If you’re considering auto leasing as an option instead of buying a new car, do your homework carefully. The pros and cons of leasing should be fully understood before making a decision. The biggest draw for auto leasing is the opportunity to get into more car than you could probably afford to buy.
Since you are not actually buying the car, but simply paying for a portion of the car’s full value over the lease period, your payments are usually always lower than a conventional loan. This gives you the opportunity to drive a $30,000 car instead of a $20,000 car. In tough economic times manufacturers notoriously offer some pretty sweet leasing terms that can be tough to resist. Initial costs for most leases are below what it can cost to get into a new car and at the end of the lease you can walk away.
Sounds like a great deal right? Not necessarily. Auto leasing scams are prevalent, and easy to do, yet you hear almost nothing about them. It is in fact, extremely easy for dealers to pull off a leasing scam right under your nose in a variety of ways. Leasing can be a complicated subject filled with terminology that is unfamiliar to most consumers. You can protect yourself from leasing scams with a firm understanding of the leasing process and terms. Secret price hikes are the most common leasing scam, the dealer simply inflates the price of the vehicle before calculating the lease payment. They are counting on your trusting nature to help slip this one past you. Most people don’t check the financial calculations; and this is exactly what the dealer may be counting on.
Don’t trust anyone; listen to your instincts, if something feels wrong, it probably is. Auto leasing scams have been so easy to do and are so profitable that it has become difficult for most dealers to resist the temptation. ALWAYS insist on full disclosure of residual costs, applicable fees, rebates or incentives before you begin negotiations. After you have reached an agreement, ALWAYS calculate the payment yourself and be sure to account for any down payment, trade-ins, etc. Do not sign the contract until you’ve calculated the payment yourself and are satisfied that the dealer’s calculations match yours. Do not hesitate to get some help calculating the lease agreements before signing.
Undisclosed fees and the disappearing trade are some of the other popular auto leasing scams. Sources are available on the Internet for you to investigate leasing scams in more detail. Some sites even offer affordable software to help you negotiate the best lease and spot a scam. A small investment now could save you thousands of dollars later. It is possible to find an honest dealer that will help you lease the car of your dreams without ripping you off, but you should know the facts and be fully informed before signing the dotted line.