On the surface, getting a car lease instead of buying your new car sounds like a pretty good deal. After all, you’re getting the same shiny new car and in many cases, with a lower initial outlay of money required, and significantly lower monthly payments. And when the term of lease ends after, say, 36 or 48 months, simply return the car to the dealer with no questions asked, and maybe start the process over with another car. Unfortunately, it’s not quite that simple. There are many tricks that car dealers play in order to make a lease a great deal for them and a potential nightmare for you.
For example, did you know that by enhancing the initial deposit, car dealers and leasing companies will appear to make your monthly payments appear lower, even though you end up actually paying out more money in the end? As a rule of thumb, your initial deposit should be no more than three times the monthly payment on your car lease. Another way leasing companies try to rip you off is to extend the lease beyond 36 months. In most cases, the vehicle warranty will expire after three years, leaving you responsible for any needed repairs, which, of course, are more likely to be required the older the vehicle gets.
Unlimited mileage deals are also something to be aware of when it comes to a car lease. While there is no excess mileage charge per se, if you go over the mileage figure stated in your contract, you may be responsible for a balloon payment, which is often more than what the car is actually worth. Some leasing companies are also deliberately unclear as to what they initially quote you as far as price and terms, so it is imperative that you ask them to put their quote in writing. This serves to protect you as well as allowing you to compare quotes before actually committing to a lease.
Like with any major purchase, the best way to protect yourself from being ripped off when getting a car lease is to do your homework ahead of time, so you know what to expect. You need inside information from someone who has been there, who actually has experience working in the car business.
To learn more about what to avoid when get a car lease, check out “Taking the House Edge: Car Buying Tips” by visiting http://cardealershiptricks.com