How to Avoid Car Leasing Scams

If you’re considering leasing a vehicle, there are many leasing scams to beware of. It is better to be cautious and well prepared before you walk into the leasing firm than to leave with lease in hand, and scam on way. Although car leasing may feel like an attractive alternative to buying, it can also be a nightmare with the many scams you may come across. Sometimes the perks do outweigh the risks, but it may not be worth risking.

Difficulty: Moderate

Instructions

Types of Scams

1. While leasing agencies do offer perks that buying cannot offer. They also like to sneak in hidden fees into the contract, and if you’re not careful the trade in you brought with you may disappear off of the contract as well. You should always check the numbers yourself before signing any leasing contract. The scams these leasing agencies sneak in are hard to detect, and easy to throw into the contract, without you even noticing it.

2. Beware of false promises to take in your old car, pay it off, and get you into a brand new car for lower payments. The leasing company will pay off your old car, just like they promised, but if you owe more than what the trade in is worth the leasing company will include that difference in your contract, and they won’t tell you this. You won’t know it because they include it in hidden fees and small print. That’s why it’s important to pay close attention to the small print, and always double check that your trade in included in the contract.

3. The leasing company will tell you that your credit rating is safe. It’s not considered a liability and won’t show up on your credit score. This is a lie! Leasing a car is just like buying a car in terms of credit. It will show up on your report, and if you make late payments it will affect your credit rating in a negative way. Leasing does not help reduce your credit liability because it is considered a loan.

4. The leasing agency will tell you that it’s easy to get out of a car lease at any time, regardless of the contract. This is not true. On the contrary, leasing is designed so that it is impossible to get out of the contract. If you end early you will be paying hidden fees, all of your left over payments, and any other fees they have placed in the contract

5. Leasing agencies will tell you that the car is under warranty, which is deceptive. Leased cars are not warranted, and you are responsible for any maintenance that it needs, just as if you owned the car. They may also tell you that a leased car is required to hold extended warranties which are also false. There is nothing written into law that states you must purchase an extended warranty.

6. This is simply not true. The leasing agent might try and take advantage of the fact most customers don’t understand the dynamics of leasing. The agent will tell you the leasing price is based on the sticker price, but this is false. Leasing is based on negotiated, discounted, and rebated prices.

7. The leasing agent won’t tell you they charge if you go over the usual 15,000 mileage per year that is hidden in your contract. They will charge you outrageous over the mileage fees, and a much higher deprecation fee for breaking contract.