So You Think You Want To Lease?
that $275 per month BMW ad? There's a tiny stock number of the only car there at that price. To get low monthly payments, you need huge down payments. The fine print states taxes are extra. For a $699 payment, add 6% Florida tax: $740.94.
Long-term cost of leasing is more than the cost of buying: It's more if you buy the car at the end. If long term financial benefits are your only interests you should buy. Some dealers perform an analysis of Buy vs. Lease, and show leasing always cheaper. Always check their numbers.
Mileage limits: Leases limit you to 12000 miles/year, some are 10,000 miles. Anything over that can be hundred of dollars out of your pocket at lease end.
You are responsible for program maintenance: Better keep darn good records of every oil change, tune up, etc. and do them on schedule too. Don't give them any chance to claim excess wear and tear.
Some have large up front fees: Leases used to be $0 down, $0 deposit. Even ads touting $0 down have some fees up front. Down payments create the illusion of lower monthly payments. To accurately figure your total cost of the lease, add up all down payments, fees.
Excess wear and tear clauses: They could nit pick when you bring the car back. They can find a way to keep your "refundable security deposit" to offset claims of excess wear and tear.
All 4 tires must match! This is in every lease contract. Leasing companies charge you for mismatched tires, and they charge MSRP, which you can get cheaper in a tire shop.
Too much fraud and unfair selling practices: Florida Attorney General settled with Toyota regarding automobile leasing and 2,200 consumers got partial refunds. People in Florida and Georgia complained they were tricked into signing leases, when they thought they were buying.
Accidents may trigger early termination: Your lease is "terminated," and you're obligated to pay off the lease. Car insurance covers the damages, but not the cost of paying off the lease. You'll need "gap insurance" for that. You should buy gap insurance when you lease, or put down less than 20% on a purchase. But don't buy it from the dealer.
People want out of their lease early. Dealers pay your penalties and buy you out of your current lease, but they just finance all that debt into the new lease. You think
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