Dealer Fraud

If possible it may be wise to lease a vehicle from a car dealer and/or automaker instead of a private leasing company because when it is time to turn your vehicle in, the dealer may give you more of a “break” on how much of the “wear and tear” deposit you get back, especially if you buy or lease another vehicle from the same dealer.

There are up to 30 or more ways for car dealers to potentially deceive car buyers! U.S. federal regulators try to curb widespread deception but salespeople for dealers may withhold information, make false or misleading claims about leasing obligations and even possibly engage in illegal “bait and switch” sales tactics concerning the exact models of cars being offered on an advertised deal, as well as confuse you about leasing terms of the sales contract.

Despite attempts at regulation, dealers may still be free to encode lease terms in confusing language and withhold key financing terms. Worst of all, dealers may not even be required to provide certain pertinent information until you are ready to sign a contract! Beware of “subvented” leases which are equivalent to the industry’s “blue plate specials”. Automakers, dealers and some leasing companies may offer low price leases on certain vehicles, yet only a few of the cars may be fully loaded with options at the advertised cut- rate or discounted terms! Remember, possibly 8 out of 10 salespeople may not even disclose terms of the lease beyond the monthly payment. Regardless, always tell the salesperson you will not be ready to buy until you can compare the terms with the dealer’s competitors.

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