Dealer Leasing Tricks
Too often when it comes to auto-leasing، people get so dazzled by the
myriad terms and the jargon thrown their way that they end-up paying
through the nose، relying on a dealer’s help than their own informed
decision.
Here is a look at some of the tricks dealers use to pad their profits and
leave the customers shelling hundreds of dollars more than the deal should
be worth.
Trick 1: Leasing always a better deal than buying
Dealers use the lure of lower-monthly payments to entice customers to sign
for long-term loans، with terms stretching for five years or more، making
the payments even lower. There are two catches with such lengthy contracts:
higher mileage، exceeding the prescribed limit، and hefty repair costs.
With
leases charging on average 10 to 20 cents a mile for any extra mile over
the agreed amount in the contract، and warranties only covering three
years، you leave yourself wide open for hefty charges for excessive
mileage and wear and tear.
Trick 2: Cheap 2-3% APR rate on your lease
The dealer is not quoting the interest rate you would be paying on your
lease، he’s rather giving you the lease money factor. Whilst similar to an
interest rate and important in determining your monthly payment، a more
accurate rate is calculated by multiplying the money factor by 24. For
example a cheap 3% money factor is 24 X 0.003
