Learning the risks of leasing a car and car dealer scams are important even if you don’t have any intention of leasing a car. That’s because when you know the risks and the rewards of leasing a car, then you can logically evaluate the pros and cons. By doing so you can can determine if leasing a car is right for you and your situation.
It is true there are risks involved in leasing a vehicle, beside the car dealer scams. But the truth is there are risks involved in buying a car, too. The trick is knowing the risks and how to manage the car scam risks and car dealer tricks.
Probably one of the biggest dangers, when leasing an automobile, is going over the allowed mileage. When you are leasing a vehicle, the company makes money by essentially charging you for the depreciation. This means that to make the most money, they need to get the car back in good condition, because they need to be able to sell it to someone after you’re done leasing it.
For just that reason all leases have clauses that limit the amount of miles you can put on them. If you go over this limit, you’re going to have to pay, typically quite a lot, I have seen some charge up to a $.25 or more per mile. This can get very expensive, so if you have a daily commute that will put you anywhere close to the limit you should consider a lease with a higher mileage allowance. This is a potential for a car dealer scam. If the car dealer talks you into a higher mileage allowance that you do not use, there is no refund. They will try to scare you with the high charge for over mileage, which is part of this car scam.
Another of the larger risk is that if you are unable to make the lease payments, you’ve got no equity in the car. Whereas, if you make four years of payments on your own car and are then unable to keep paying, you can at least sell the car and hopefully cover the rest of the cost (hopefully, but not always).This risk can be used and twisted as part of a car dealer scam to talk you into leasing or buying (bumped). The dealer will try to sway you in the direction that will bring them more profit.
But with a car lease, you never have equity, so if you find yourself in a bad financial situation, then you’re going to be left with nothing or may end up owing fees and other charges. The sad thing you’ll still be on the hook for the payments, even if you give the car back. You will either have to pay the rest of the lease, pay a huge termination fee or arrange a lease transfer (lingo). This not part of a car dealer scam, but rather a condition of all car leases.
This is a particular problem if you’re using a lease to allow you to drive more car than you can reasonably afford. This is an all too common reason for getting a lease, and should probably qualify as one of the risks of leasing a car in its own right. Dealers will often try to sell you on the idea of driving a car you wouldn’t able to own as a reason to lease. This is a common car dealer scam.
Leasing is a good idea for people who changes cars every 2 or 3 years, or are planning a change in lifestyle a few years down the road. But leasing a car to impress your friends or even yourself is a bad decision. It is a very common car dealer scam to switch you to a lease when you are a payment buyer.
Many car dealers will downplay the risks of leasing because it is usually easier to use a car dealer scam on a customer this is leasing, because of the average car buyer is unfamiliar with leasing and they depend on their car salesman for advice. A big mistake for anyone buying or leasing a car because they work on commission.
If you know the risks of leasing a car, it can be a good choice, but you need to consider all of the car dealers scams and possible outcomes. Make the decision with a clear and logical mind, also watch for all the possible car dealer scams. If you do that, you will be able to make the best decision for you and your situation. When doing the paperwork for any car lease, just like the car buying fees there are lease fees so you need to be sure of what you are signing and read everything carefully to avoid any car scam.