Cars - Leasing
tips on buying cars from the united states government
general tips - buying new - buying used - leasing - renting - repair
When you lease, you pay to drive someone else’s vehicle. Monthly payments for a lease may be lower than loan payments, but at the end of the lease you have no ownership or equity in the car.
• Shop for a lease as if you’re buying a car. To help you comparison shop, the Consumer Leasing Act requires leasing companies to disclose information concerning monthly payments and other charges. Check out www.Edmunds.com, Intellichoice.com, and www.Leasesource.comwww.Leasesource.com for online information on leases including current lease deals.
• Negotiate all the lease terms including the price of the vehicle. Lowering the base price will help reduce your monthly payments.
• Ask for details on wear and tear standards. Dings that you may regard as normal wear and tear may be billed as significant damage at the end of your lease.
• Find out how many miles you can drive in a year. Most leases allow 12,000 to 15,000 miles a year. Expect a charge of 10 to 25 cents for each additional mile.
• Make sure the manufacturer’s warranty covers the entire lease term and the number of miles you are likely to drive.
• Ask the dealer about early termination charges. Expect to pay a substantial charge if you give the car up before the end of your lease. Ask what happens if the car is totaled six months after the lease is signed.
• Before you sign the deal, take a copy of the contract home and review it carefully away from any dealer pressure. Make sure you are getting credit for any trade-in. Look for any charges that were not disclosed at the dealership, like conveyance, disposition, and preparation fees.
• Get all the terms in writing. Every item of equipment should be listed on the lease to avoid being charged for “missing” equipment at the end of the lease.
When you finance a car, the finance charge must be stated as an Annual Percentage Rate (APR). There is no similar requirement for disclosing the cost of leases. “Lease rates” or “money factors” do not have standard definitions and are not equivalent to an APR.
Credit and Sublease Brokers
These are con artists who prey on people who have bad credit and who cannot get car loans.
“Credit brokers” promise to get a loan for you in exchange for a high fee. In many cases, the “broker” takes the fee and disappears.
“Sublease brokers” charge a fee to arrange for you to “sublease” or “take over” someone else’s car lease or loan. Such deals usually violate the original loan or lease agreement. Your car can be repossessed even if you’ve made all of your payments. You also might have trouble insuring your car.
general tips - buying new - buying used - leasing - renting - repair
taken from http://www.consumeraction.gov/