Lease Problems

Generally, I do not recommend that the average person lease a car.

  1. Leases were not invented for the benefit of the consumer.

  2. There are numerous hidden charges.

  3. Your rights in leasing (really renting) a car much less than if you own the car, much like the difference between renting your home and owning it.

  4. Economically it can be disastrous because too many people negotiate the payment and not the price. The salesperson asks you how much you can afford a month. That becomes the negotiation. You may wind up with a large payoff due at the end of the lease. Many consumers are then talked into rolling that debt over into the next lease, just digging the hole deeper until they can't get out.

  5. Some dealers fail to credit the trade-in on the lease.

  6. Some dealers tell the leasing company (such as a bank or GMAC or Ford Credit) that the vehicle has more equipment on it than it really has. This allows the dealer to overcharge.

  7. Some dealers add equipment, options, service contracts that the customer neither wants not needs. Did you know that dealers frequently make a 50% profit on the $1,500 dollar service contract they sold you on the brand new car with a manufacturer's bumper to bumper warranty? The salesperson who is paid only on commission may make as much as 1/3 of that profit, or in this case perhaps $250.

  8. Consumers sometimes believe they are buying a car when in fact the dealer is leasing it to them. This sometimes happens when the buyer cannot understand English very well. Leasing is very complicated.If you believe you were cheated in leasing a car or truck, you should consult a lawyer.


San Diego Lemon Law Center | The Law Office of Michael E. Lindsey
Tel: (858) 270-7000 Fax: (858) 270-7710 | 4455 Morena Blvd., Ste. 207 San Diego, CA, 92117 (see map)

General Information Only

The information in the San Diego Lemon Law Center pages is for general information only and is not intended to be taken as legal advice. If you have a specific legal question or problem, please feel free to contact us or you should promptly consult with an Attorney handling such matters in your area for advice.