Leasing a car has been lauded as a more attractive alternative to purchase,
in the process offers the flexibility to drive a new car for less. The
In reality, however, is that leasing is a choice of various
pitfalls for the average customer. Leasing does not require regulation as
much like the purchase of vehicles. This has given rise to many leasing
fraud that trick customers into believing they are good
when, in effect, all that is rough on the way to handle the requirements of the agency.
Here we see some common scams and how to avoid them
Artificially low interest rates:
Some dealers offer interest rates lower when in fact that many
higher. They do this by deliberately picking good money as a factor
or the interest rate the loan without amortizing some closing
costs, such as cash collateral security, in a loan to lease. Take the money
factors, among others: this is usually expressed as four decimal digits,
something like 0.004. Some dealers quote this as 4% when interest rates
you actually need to multiply by 24 to get a rough idea of the interest
rate on the loan. In this example, the interest rate is 9.6% higher
than the “quoted” level of 4%.
Make sure you crunch the numbers and understand the formula they use to
they calculate the interest rate. Beware the cost does not factor into the
calculation. If you are not satisfied, do not enter into a lease
agreement.
You stop the lease early for a low penalty
This is the all-time leasing scam. You ask the dealer how much you will pay
if you want to terminate your lease and he tells you: “You want to go out
early? Of course, you only pay the early termination fee of $ 300. “What he
quotes are only a small early termination administrative penalty,
there are a lot stiffer penalty called early termination fee and this runs
into thousands of dollars.
Do not confuse the early termination administrative penalty with the
termination costs. Read the small print carefully and know exactly how many
You will be charged should you terminate your lease before the scheduled
end.
To extend the guarantee to pay you do not need to
This is another shell game to inflate the profits of the agent in charge.
Dealer of the slide-assurance that expanded to handle in the meantime have
factor in the monthly payment, or he tricks you into buying a 36-month
warranty on the 24-month lease.
You do not need to pay additional money for security is built into the
payment or a walk outside with either your lease term.
They may slip in the extended warranty Do not be fooled, which is a guarantee
already factors in
There is no guarantee deposits
Each dealer who Advertises a $ 0 security deposit does not tell you
the whole story. A security deposit is always factor in the lease under
provision for disposition fees.
August 5th, 2009 at 7:41 pm
Good morning my dear friend thanks for the visit, sorry i’m late, wish you all the best