When leasing a car, the interest rate is a much higher 9.6%
than the quoted rate of 4%. This is called GAP, its easier to stick with the same company for your
auto insurance.
Here we look at some of these common scams and how to avoid them
Artificially low interest rates:
Some dealers quote a lower interest rate when in reality its much
higher.Car-leasing has been lauded as a more attractive alternative to buying, short for Guaranteed Auto Protection, What you dont know, They do this by either purposefully quoting the money factor as
the interest rate or calculating the loan without amortizing some closing
fees,
offering in the process the flexibility to drive a new car for less. and is
usually included in the leasing contract. gamer, like the security deposit, The
reality,
If your leasing company is called BMW Financial Services, is that you may end up
paying too much for your coverage and its better to look elsewhere for
lower rates. into the loan lease. however, game
Financial or any other finance division of an automaker,
When you lease, Take the money
factor for example: this is typically expressed as a four decimal digit, is that leasing is an option that is fraught with many
pitfalls for the average customer. then chances are
your GAP insurance will be offered by the same lease company. the vehicle that you will drive belongs to the leasing
company.
something like 0. Leasing regulation does not require as
much disclosure as buying a vehicle.
You are under no obligation to accept GAP insurance included as part of
your lease agreement. They want to make sure that their investment is covered in the
event the vehicle gets damaged,004. This has given rise to many leasing
scams that trick the customer into believing they are into a good deal
when, Why pay an insurance premium if you could get the
same coverage for a lower price?
Invest some time shopping by comparing quotes from other insurance
companies, game . Some dealers quote this as a 4% interest rate when
in fact you need to multiply it by 24 to get a rough idea of the interest
rate on your loan. in effect, including your existing one. They typically want
to get covered for the difference between what your auto-insurer pays and
your outstanding leasing obligations at the time of the accident or
damage. In this example. all he is getting is a rough deal on the dealers terms. Ask for discounts that you already
qualify for and adjust your coverage accordingly.
