Dealer Leasing Tricks

Too many times when it comes to auto-leasing, people get very confused by the myriad terms and the jargon that is thrown at them, that they end-up paying over the odds and end up relying on a dealer’s “help” rather than their own informed decisions.

Listed below are some of the tricks dealers can use to pad out their profits and leave the customers shelling out hundreds of pounds more than the deal
is actually worth. Short term car leasing is one of the most popular leasing offers.

Trick 1: Leasing always a better option than buying

Dealers use the lure of low-monthly payments to entice customers to sign for long-term loans, with contracts stretching for five years or more, making
the payments even lower.

There are two flaws with such lengthy contracts: higher mileage,when exceeding the prescribed limit, and hefty repair costs.

With leases charging on average 10 to 20 pence a mile for any extra mile over the agreed amount in the contract, and warranties only covering three
years, you would be leaving yourself wide open for hefty charges for excessive mileage and wear and tear. When the payments on a car lease become a problem you could always look into car lease assumption. 

Trick 2: Cheap 2-3% APR rate on your lease

The dealer is not quoting the true interest rate you would be paying on your lease; this is simply 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 = 7.2%. Doing his gives you a more accurate sense of what your actual annual interest rate on your
lease is.

Trick 3: Stress-free early lease termination

Dealers know consumer driving needs change and sometimes need the the option of getting out of a lease commitment further down the line before the contract ends, The reality is, when you sign for an car lease, you are effectively resigned to monthly payments for the remainder of the lease term and there is little-choice of being able to end the contract early. There are a number of car lease deals which are offered every day, do your research.

Such contracts can carry massive financial penalties for either defaulting on monthly payments or terminating the lease earlier than the scheduled date.

It is worthwhile educating yourself about leasing in order to avoid being on the receiving end of such tried-and-true tricks, This way you can have a better understanding of what the leasing terms used by dealers actually mean.

Investigate the numbers alongside with him get a full understanding on how the monthly figure is arrived at.
Ensure you do not sign anything until you have a full understanding of all the terms and your igures match those of the dealer.
 Do not feel pressurised by the dealer into signing, you are the one with the control to determine is the contract is the right one for you.