Car dealers many times resort to some common tricks to fool you into a lease when it may not be your best interest. For that reason, it is important that you understand how the leasing process works and to be able to make your own choices, without the car salesman's help. In this article, we will disclose the top crooked techniques used by car dealers. Any one of these could cost you an arm and a leg. Just think how bad it could be if a crooked car dealer used more than one of these fraudulent leasing techniques on you.

1. "We will accept your old car as a trade-in, pay off your existing loan balance, regardless of how much you owe, and get you into a new vehicle for lower monthly payments."

This is definitely a bad deal. The reality of this situation is that if you owe more money than the value of your trade-in, the dealership will add the difference and factor it into the lease payments on your new vehicle. Your total monthly payment will likely be lower than you expected.

2. "We will make the remaining payments on your old lease if you lease a new car from us today."

Another crock! The reality of this situation is that the dealer is simply making your remaining payments and returning the car to the leasing company for you. If the vehicle has excessive mileage or wear and tear, the leasing company will hold you responsible for this and not the dealer. Should the dealer fail in making those final payments, the leasing company will hold you responsible and not the dealer. If the dealer fails to return the car to the leasing company, again the leasing company will hold you responsible. Moreover, the dealer will most likely add all or part of those remaining payments back into the price of your new car.

3. "You will get a nice 3.4% rate on this lease, which is better than our loan rates."

Sounds great, right? Wrong! That 3.4% rate sounds attractive except that it is not an interest rate that they are giving you. The rate you are given is the lease's money factor which is more commonly written as .0034. To convert this figure to annual interest rate, multiply by 2400. Therefore, a .0034 money factor is equivalent to an 8.16% interest rate on an auto loan.

4. "We will accept your old leased vehicle as a trade-in and give you a good deal on a new lease."

Trading in a leased car is a bad idea. The reason is that many people will not have any equity in their old leased car to help them buy or lease a new car. Many problems can arise from this situation. At worst case, the dealer takes your old leased vehicle and returns it to the leasing company, who will send you a bill for early termination or buyout. Or, the dealership can put the car on their used car lot after buying the car from the leasing company and adding the buyout cost, less the trade-in credit, to the price of your new vehicle. If you have reached the end of your lease and have no equity in your leased vehicle, it is better to return the car to the leasing company.

5. "Leasing is better than buying because you can swap cars anytime you want."

Yeah, right! Dealers are well aware that some people like to swap cars often and want the flexibility to get out of a lease when they choose to do so. Leasing allows people to do that. What the dealership hides from you is that leasing is designed in a way to make it hard and expensive to close the lease before the normal end date.

6. "Leasing is better than buying because the monthly payments are less for the same car."

This fact is true that lease payments are less than monthly purchase payments. This allows dealerships to suggest that leasing is a better deal. However, the reality is that dealerships many times stretch out the lease term to 60 months or more to make the payments even lower. If you drive 15,000 miles or more per year, then leasing is definitely not for you. The dealer may "forget" to explain that to you. A 60 month lease on a vehicle that only has a 36 month warranty makes you prone to expensive car repair costs for a vehicle that you do not own.

7. "Leasing does not show up as a debt liability on your credit report because it is similar to renting."

Nothing could be farther from the truth. Leasing is not like renting. Leasing does show up on your credit report as a debt you must pay just like a loan. If you are late making payments, your credit record is blemished, just like with a loan. If you are concerned about your load of debt, then do not consider leasing a car.

8. "The best way to get a new car is to lease first and then buy the car at the end of the lease."

Not true. Although leasing offers lower monthly payments, purchasing the car at the end of the lease adds more to the cost and makes the total cost of the lease-purchase option scenario greater than if you had bought the car at the beginning. Do not allow an underhanded car salesman convince you that the extra cost is non-existent.

9. "Factory rebates and price discounts do not apply to leasing."

Many car dealerships take advantage of their customers who are not cognizant of the leasing process. Some will tell you that leasing is always based on a "sticker price." This is a bunch of B.S. Leasing is always based on negotiated, rebated, or discounted price. Do not allow a dealership swindle you this way.

10. "All our leased cars must have extended warranties, rust proofing, paint protection, maintenance contracts, and window etching."

This is another deceptive tactic used by dealerships. The reality is that these are just options and not requirements, but the dealer is hoping that you do not know that. Leasing companies do not require you to have these options that the dealer may suggest. Dealerships are only interested in padding their profits as best as they can.

Multiple tenant commercial real estate buildings that house retail shops or shopping malls are usually leased to the different tenants. They operate several diverse businesses under the same roof using a percentage lease. In a percentage lease, the owner is paid a base rent plus a percentage of the tenant’s gross receipts. The rent is determined by the amount of business done by the lessee. This type of lease is used most commonly by a single entity that rents or leases a multiple tenant commercial building leased to numerous retail shops or shopping malls, as they are more popularly known. Investors see percentage lease as benefiting both the owner as well as the tenant.

The owner has superior returns, whereas the tenant has the advantage of a lower rent structure. The percentage charged is usually 10% to 12%, and is paid annually, semi-annually or quarterly. Some other owners demand even on a monthly basis. It depends on the type of property, the location, its desirability and the sales volume of the lessee. This type of lease requires that the tenant periodically keeps furnishing the gross receipt to the owner, which may be a deterrent and may cause tenants to change their mind about agreeing to the lease. They have to produce their sales books, IRS form attachments or their sales tax records.

Types of Rent Discrimination and Percentage Leases; The one main advantage of a percentage lease is the risk sharing by the landlord and the tenant. The landlord will benefit if he discriminates in charging rents to different tenants. In simple rent discrimination, the landlord charges each tenant under the same tenant classification such as boutiques a particular rent and other such classifications of tenants’ different rents as per the nature of the business. In perfect rent discrimination, each tenant is charged a different rent to ensure the landlord gets the maximum profit.

The tenants do generally not prefer percentage leases but they will comply if the owner of a desirable, well-suited and well-located property demands it. The tenants have to comprehend the terms of the lease before they sign it. They have to be very specific in making clear what accounts for the gross receipt, which can exclude some items such as returned goods, delivery and installation charges, sales tax, mail order sales etc. and other such deductible items as per the nature of the business.

Percentage leases are also used in the farming sector where owners receive a percentage of the crop grown and harvested; the owners make profit by selling his percentage of the crop. The normal percentage lease usually charges 30% to 40% depending upon the quality of the farmland. The percentage lease is therefore not a very popular type of lease.

Taking over a car lease means assuming someone else's leased car with the same terms that were originally agreed upon. People who are unable to maintain their car leases often advertise in the classifieds or on the Internet.

Usually people who opt for takeover car leases are those who wish to have a car for a short term with low monthly payments. Takeover leases are short term because a portion of the lease period is already. Sometimes the original lessee has to pay some amount as a down payment when taking the car in order to reduce monthly payments.

A takeover car lease seems to be a win-win situation. The takeover lessee must be certain that monthly payments can be made. Leasing companies will not lease to anyone who has bad credit and if the new leaser fails to meet payments, the company may hold the original lessee responsible

There are also technical issues. When the car is taken over, it is very imperative to check for wear and tear. A mechanic should check the car at the dealers. Everything must be checked from the components to the upholstery. Anything amiss will be the responsibility of the takeover lessee to repair and maintain. The new lessee will deposit a claim amount and the original lessee will get an amount refunded. Also, the bills of all maintenance and repair works must be taken from the original lessee.

The mileage must be checked. Leasing companies lease their cars with an annual mileage limit. The takeover lessee must check how many miles are left, because each excess mileage will attract a charge of 0.10 cents upward when the lease is over. In order to secure more protection, the takeover lessee must take an added insurance for the vehicle. Check whether gap insurance is in effect, as it would protect the vehicle from accidents and thefts.

"Looking for an apartment can be a time-consuming and sometimes overwhelming experience. Trying to sort through all of the different apartment listings can be quite tedious and deciding which ones are truly worth your while can be difficult. Since so many of us are dealing with busy schedules, it is difficult to find the time to look at different apartment listings and to try to coordinate your schedule with the schedules of various landlords. Therefore, if you are looking to simplify the process while also increasing your chances of finding your dream apartment, it is a good idea to enlist in the services of a leasing agent.

What is a Leasing Agent?

A leasing agent is a person that actually works for the landlords of apartment complexes, shipping centers, and office buildings. The primary job of a leasing agent is to help the landlord find tenants. When the leasing agent successfully finds a tenant for the landlord, he or she receives a commission. The leasing agent also takes care of finalizing the leases. As such, the landlord relies upon the leasing agent to find good tenants that are willing to pay a fair price for the apartment.

What Should I Expect from a Leasing Agent?

Just as a real estate agent is hired to represent the person selling the home, a leasing agent is hired to represent the landlord. Therefore, you are responsible for trying to negotiate the best deal possible. After all, the leasing agent is going to try to get the best deal for his or her client as possible because this will result in a larger commission. In order to guarantee that you are properly represented, you might want to higher an agent to represent you.

How Can I Be Sure to Get the Apartment I am Looking For?

In order to make sure you find the apartment you are looking for, you need to have a clear idea of what you are looking for when you approach the leasing agent. This includes knowing how much you are willing to pay, the size you are looking to rent, where you prefer the apartment to be located, and the amenities you want to be included. If you are a pet owner, you will also need to bring this to the attention of the leasing agent.

By putting together a comprehensive list of what you are looking for in an apartment, you can simply submit this to the leasing agent and ask that the agent contact you with a list of apartment options that fit your criteria. Once the leasing agent supplies you with a list, you can select the ones that are of the most interest to you.

In some cases, the agent will only provide you with the apartment information and you will be left to look into the apartments on your own. In other cases, the leasing agent will actually take you to view the various apartment rentals on the list. If this is important to you, be sure to deal with an agent that will take this extra step for you."

Leasing is a perfectly viable and legitimate way to finance a new car. Although leasing offers attractive benefits, it is somewhat more complex than buying with a loan. This means there can be pitfalls if a decision to lease is made for the wrong reasons.

Therefore, a comparison of leasing versus buying is always a useful exercise when considering automobile financing. One option will generally be decidedly better than the other in any specific situation.

Let's first look at the financial side of the analysis.

Leasing always results in lower monthly payments than a conventional automobile loan, assuming the same vehicle, same down payment, same interest rate, and same term. Lease payments will be as much as 60% less than loan payments. Therefore, if monthly payments are your most important consideration, leasing is a good financial option (although there may be other reasons you shouldn't lease -- see below).

However, in the long term, leasing actually costs more than buying assuming that the buyer keeps his/her vehicle for a long time after the loan has been paid. It doesn't take rocket science to figure out that leasing a new car every two or three years costs more than buying one car and keeping it until it falls apart. So if long-term cost is your highest priority, then leasing is not for you.

Even if leasing makes financial sense to you, there may be reasons that it won't work for you.

If you drive more than about 15,000 miles a year, leasing is not a good option for you. The reason is that leasing is designed for people who typically drive only average miles and don't want to pay for the entire value of a vehicle. They only pay for the relatively small part of the value of the vehicle that they actually use.

Leasing may not be a good option, too, if you don't typically maintain your vehicles well, carry only minimum insurance, like to modify your vehicles, or prefer the idea of ownership.

Furthermore, if you expect lifestyle changes (marriage, divorce, job change) that might cause you to want to end your lease before its normal end date, don't lease. Leases are designed in a way that makes it both troublesome and expensive to terminate early.

Taking over a car lease means assuming someone else's leased car with the same terms that were originally agreed upon. People who are unable to maintain their car leases often advertise in the classifieds or on the Internet.

Usually people who opt for takeover car leases are those who wish to have a car for a short term with low monthly payments. Takeover leases are short term because a portion of the lease period is already. Sometimes the original lessee has to pay some amount as a down payment when taking the car in order to reduce monthly payments.

A takeover car lease seems to be a win-win situation. The takeover lessee must be certain that monthly payments can be made. Leasing companies will not lease to anyone who has bad credit and if the new leaser fails to meet payments, the company may hold the original lessee responsible

There are also technical issues. When the car is taken over, it is very imperative to check for wear and tear. A mechanic should check the car at the dealers. Everything must be checked from the components to the upholstery. Anything amiss will be the responsibility of the takeover lessee to repair and maintain. The new lessee will deposit a claim amount and the original lessee will get an amount refunded. Also, the bills of all maintenance and repair works must be taken from the original lessee.

The mileage must be checked. Leasing companies lease their cars with an annual mileage limit. The takeover lessee must check how many miles are left, because each excess mileage will attract a charge of 0.10 cents upward when the lease is over. In order to secure more protection, the takeover lessee must take an added insurance for the vehicle. Check whether gap insurance is in effect, as it would protect the vehicle from accidents and thefts.

Your car is one of the most expensive purchases you will ever make. Probably the only thing you will buy that costs more than your car is your house. You wouldn’t just accept the first mortgage you came across, and likewise you shouldn’t just accept the first vehicle financing option that comes your way. You will have a lot of options in how to finance your car. You can buy the car outright. If you would like to opt for this, you will need to borrow the cash in the form of a bank loan.

This should generally be medium term, over period of about two to five years. It is generally not advised that you secure borrowing over your home but this may be necessary in order to get the loan or in order to get a better rate. Shop around for the best rate, from banks, other lenders and also on the internet. Rates will vary widely so it is a good idea to shop around as much as possible.

Leasing

If buying the car outright in this manner is not an option, you may wish to consider leasing the car. Leasing will never make you the owner of the car. You pay a monthly fee, every month for the period of the lease, and at the end of this period, you give back the car and walk away. Leases have a number of advantages over buying the vehicle. The payments are generally lower as you are not paying for the entire value, just for the price of leasing it.

You also don’t have to worry about selling the car when the leasing period is over, as the dealer owns it. Leases may also include a buying option at the end of the period, which will allow you to buy the car if you want to. The one thing to be careful about when leasing is that there may be heavy penalties for early termination.

Some Advantages

The other popular type of vehicle financing is dealership financing. With this option, the car dealer arranges the car financing. They will sometimes offer very attractive rates as they want to encourage people to buy the cars, however, sometimes their rates are extremely bad and you will want to be familiar with what’s available from alternative sources before opting for dealership financing. Some advantages of dealership financing will include convenience, multiple options, and special offers on selected models.

Over the past few years, the popularity of car leasing has soared. When you compare leasing with buying a car and suffering the humongous monthly installment fees, leasing provides a better and more viable financial option.

For auto leasing, you need to know the tricks of the trade so that you will not end up paying more than when you directly buy the car. There are car dealers and manufacturers who can give you your money's worth if you want to go for this option.

You will get a better deal out of the car dealers if you appear knowledgeable about the auto leasing industry, so read up.

'Auto Leasing Defined'

You would "lease" a car by paying for the costs by which the vehicle depreciates in value. You can calculate depreciation costs by subtracting the car's value by the time that the lease ends, from its original value. There are cars which depreciate more than other brands. The rule of thumb is, the smaller the amount that your car depreciates, the lesser the costs to lease.

Once you decide to go for leasing over buying a vehicle, you may choose the one with the least depreciation value.

If you decide to go for this option, you need to learn about "lease term". This is the number of months that the vehicle is leased. Typically, leases last for 24, 36 or 48 months, depending on your contract.

'Leasing or buying: Which option is kinder to your pocket?'

-Automobile leasing requires you to have a good credit, so if your credit score is low, it is better to go for buying.

You may even be disapproved for a lease if your credit history is not good. Or, at the very least, you will be required to pay higher monthly dues.

-Leasing companies would need to profit from you.

They will invest capital on buying the car, then lease that car out. Just like with any loan, their money shoudl earn interest so you better consider this as well when considering the advantages of buying.

-Make sure that you get the best deal out of car leasing by comparing the monthly costs with the interest rates of your local car dealer.

By making a note and comparing both prices, you would more or less have an idea of which option to go for.

'Car Leasing Tips'

- When deciding on the model or make of the car that you will lease, choose the Japanese and European cars. These are basically the brands which have lower depreciation rates, as compared to the American vehicles.

You will find out that most luxury cars have the lowest depreciation values. Research, visit a local car dealer in your area or ask friends who are currently leasing cars. They should have some great tips to share with you on how to get the best deal out of leasing cars.

-Leasing a car may put a big dent in yur budget when it comes to car maintenance. You need to make sure that you are a "car-friendly" user when you opt to go for auto leasing.

-Definitely go for leasing if you are the type who wants to own the latest cars in the market. In the long run, leasing will be a better option for you as compared to buying the latest car model then trading in or selling the old one that you have.