Unfortunately, when leasing a vehicle there are some scams that you need to watch out for. Just like when in the market to new car, when leasing there is a chance that you could run into a few unethical salespeople who are just after your money and nothing else. Because of this, it is important to be aware of what potential lease scams when shopping around. Knowing what the most popular scams are will help you recognize one when, or if, it should come up. If you are unable to recognize a scam there is chance that you could get a bad deal. It is also a smart idea to know a little bit about the cars you are interested in leasing. For example, if you want to lease a new Honda Accord, you should be aware of what the purchase price of the car is as well as what is a good deal on a lease. This information is easy enough to find on the internet and can mean the difference between getting a good deal and getting ripped off. Taking just a few minutes to do research online will be well worth it as you will be ensuring yourself of a fair transaction. Visit Motor Trend – New Car Leasing as a good reference source.
One of the most popular car lease “scams” is when the salesperson offers to pay off of the value of your trade in and lease you a car for a cheaper price. Sounds good, right? You can get your old car paid off, regardless of how much it costs, and get a newer car for less money. However, this deal is not as good as it sounds many times. The salesperson will, in fact, pay off the balance of your trade in but they will credit the difference to your new car. The loan in the new car that you are about to lease will appear to be lower but in reality it is far worse. This is because the amount of overall debt that you will have is more after they tack the difference onto the deal for the new car. At the end of the day, the payments will remain low but the overall amount you need to pay in time will remain high. The fact that it is a lease will simply mask the fact that you have negative equity in your vehicle.
In some cases, the dealer will offer to pay the remaining lease payments on your current lease if you agree to lease a new car from them. Again, this sounds like a good deal. You are able to get out from under your old lease and get into a brand new one. However, there is a reason why this scenario sounds too good to be true. Think about it. How can the dealer do this and leave you free and clear? The simple answer is that in some cases they really can’t! Just because they pay the bill for the lease will not necessarily mean that they are responsible for the car. As the vehicle sits on the lot, or is used by the managers, there is a chance that something could happen to it. What if there is a few scratches on the car or it goes over the allotted miles? Who is responsible? That’s right, you are! If you are not careful about what you are signing the company that originally leased you the car will hold you responsible for anything that is wrong with it after the car is turned back in. So, before you agree to let the dealer take over your lease payments make sure that they are also taking responsibility for the car from that day forth.
Lastly, don’t forget that most leases do not need to have things like extended warranties, rust proofing or paint protection. It is just not necessary. Simply put, a leased car does not have to have any of these things because the leasing companies do not insist on them. The reason dealerships push these types of extras is because it means more profit for them. If they start pushing these extras remember to stand strong if you are not interested.