Auto Leasing Scams
Car-leasing is acclaimed to be more interesting choice for having your own car which
gives out the notion that you are going to have a car in a cheap and economical price. What you really do not know is that leasing would be a great trap especially to those customers that has average income. There are no really strict regulations in terms with this one than having to buy your own car, which has become the techniques for scammers of this field.Here are some of the things that you should know about the techniques that they use:
Artificially low interest rates:
Some dealers quote this as a 4% interest rate when in fact you need to multiply it by 24 to get a rough idea of the interest rate on your loan. In this example, the interest rate is a much higher 9.6% than the quoted rate of 4%. Make sure you crunch the numbers and understand the formula they use to calculate their interest rate. Look out for any fees not factored into the calculation. If you are not satisfied, do not enter into the lease agreement.
When they say that it has a low interest rate when the reality is that its much higher than the usual. They quote the money but does not take hold of other fees which will really erupt to bigger payments.
Stop the contract for a lesser penalty
This is a great leasing scam so if you wanted to know how much it is worth and the dealer would tell some hundred bucks for an early termination fee when in reality there are more few thousands which you are about to pay.
Do not confuse the early termination administrative penalty with the termination fee. Read the small print carefully and know exactly how much you will get charged should you terminate your lease before its scheduled end.
Pay for an extended warranty you don't need
This is another shell game to inflate the dealers profit at your expense. The dealer slides an extended-warranty into the deal whilst its already factored into the monthly payments, or he tricks you into buying a 36-month warranty on a 24-month lease. You do not have to pay extra money for a warranty already built into your payments or for one that goes well beyond your lease term. They might slip an extended warranty in. Dont be fooled, the warranty is already factored in.
There is no security deposit
There is no such thing as no zero security deposit because it is also factored in your lease. It will be and always be so do not be fooled by a misconception.
by: Brad Kadinski.