Lease or Buy: Car Buying Scam
Most car buyers do not know what the differences are in leasing a car or a traditional car loan. Car dealers know this and will try to get you into leasing. However, you should know that this is just another car buying scam commonly used by new car sales dealers. If you intend to lease a car, there are several factors you should consider first.
It’s a good idea to compare buying and leasing. Compare the total dollar amount of a car lease over the life of the lease to the total dollar amount spent over the life of a standard car loan. Also look at the terms of the lease. Pay attention to any additional contract fees or mileage fees to pay at the end of the lease contract.
Another major factor you should consider is mileage. Most leasing companies have a limited number of miles you can put on a car each year. At the end of the lease you may have to pay additional mileage fees if you put on more miles than the lease states. This is another car fraud used by car dealers, as most dealers don’t inform you about these fees when you sign the contract.
Both leasing and buying have their pro’s and con’s. In any case clearly understand all the options before making a decision. Good article from DealerFraud.org
