Jul 15 2009
Car Buying Scam - Lease or Buy?
Most car buyers do not know what the differences are in leasing a car or a traditional car loan. Car dealers know this and will try to get you into leasing. However, you should know that this is just another car buying scam commonly used by new car sales dealers. If you intend to lease a car, there are several factors you should consider first.
In fact, it is quite easy to determine if leasing is right for you. First take into consideration how you use your vehicle. A good car lease can be negotiated, so be prepared to negotiate.
It’s a good idea to compare buying and leasing. Compare the total dollar amount of a car lease over the life of the lease to the total dollar amount spent over the life of a standard car loan. Also look at the terms of the lease. Pay attention to any additional contract fees or mileage fees to pay at the end of the lease contract.
Another major factor you should consider is mileage. Most leasing companies have a limited number of miles you can put on a car each year. At the end of the lease you may have to pay additional mileage fees if you put on more miles than the lease states. This is another car fraud used by car dealers, as most dealers don’t inform you about these fees when you sign the contract.
Is leasing a car right for you? It is not an easy question to answer. Both leasing and buying have their pro’s and con’s.
In any case clearly understand all the options before making a decision. Don’t be a victim of another car dealer fraud.
Good Tips. However, every major leasing company will list the fees that are needed before and after the lease on the lease agreement.