Dealer Leasing Tricks

Too often when it comes to car-leasing, people get so dazzled by countless terms and jargon thrown their way which end-up paying through the nose, based on "help" from a dealer who just informed
decision.

Here's a look at some of the tricks dealers use their profits and Let customers bombing hundreds of dollars more than the bargain should be worth.

 1. Leasing always a better deal than buying
Retailers are using the lure of lower monthly payments to entice customers to sign for long-term loans, with terms extending for five years or more, making lower payments. There are two catches with these long contracts:
higher mileage, exceeding the prescribed limit and heavy repair costs.
With leases in charge on average 10-20 cents a mile for each additional mile above the amount agreed in the contract and warranty only covers three years, you leave you wide open for heavy charges for excessive mileage and wear and tear.

2. cheap 2-3% APR rate on your lease
The dealer is not citing the interest rate you would pay on your lease; rather it is giving the lease money factor. While similar to a interest rate and important in determining the monthly payment, a more accurate is calculated by multiplying the money factor for 24. For example of a 3% money factor "cheap" is 24 X 0.003 = 7.2%. This gives you a way better than the one that is the annual interest rate on your lease.

3.  early lease termination without Stress
Dealers know driving consumer needs change and who would like to have the option to exit before a lease commitment at times along the way, terminate their lease. Truth of the matter is, when you sign up for a lease, you actually they are saddled with monthly payments for the rest of term of the lease, and there is little choice to come out soon. Leases carry heavy penalties for both defaulting on monthly payments or terminating the lease prior to the deadline.

To avoid being on the receiving end of such tricks tried-and-true, educate you about leasing. Get down to the nitty-gritty and understand what tell leasing terms used by dealers. Crunch the numbers with him and understand how they arrived at the figure of monthly payment. Not sign anything until you understand the terms and your numbers very those the dealer.

Don't let the dealer you pressure in signing; You are the one to determine if the deal is right for you.