Oct 21 2009
Buy-Lease Switch
Buying a car means that you will own the vehicle when you finish making payments on it.
Leasing means that there is a period of time – the lease period – when you’ll be making monthly payments on the car and at the end of the lease period you will not own the car (unless you make a large payment to own it). Plus, if you want to return the car before the lease period is over, you’ll have to pay a big penalty (an “early-termination fee”) to do that.
Customers routinely fall into auto scam when car dealers lead you to believe that you are purchasing when you are really leasing (and vice versa). Among other misrepresentations is telling customers that you will own the car at the end of the lease. This is far from reality because almost all leases require you to make a large payment at the end of the lease in order for you to own the car.
What you should do?
• Read carefully and make sure you understand the entire written contract. If you want to buy a car, make sure the contract you are signing doesn’t include the word “lease” in it. It seems easy and obvious yet many customers are easily tricked at the dealership. Bring a friend if you are not sure.
• Don’t allow dealers to pressure you into a lease if you want to buy.
• Shop around and make sure you fully understand what your obligations are to avoid becoming a dealer fraud victim.
