Used car leasing is one of the fastest growing rip-offs on the car lot, according to The Los Angeles Times.
The question of leasing is one that’s common when people are buying a new car. I typically advise people to buy rather than lease. Some rare exceptions to that rule include when there is a special factory subsidized lease or a manufacturing oversupply leading to great deals at the dealership.
But leasing a used car?! That was almost unheard of to me. Then I read the newspaper article which noted that used car leases are being pushed because it’s hard to figure what you’re actually paying. The imputed interest rate is hidden and you don’t know if you’re paying massive charges. Moreover, the legalities of the used car lease contracts put you at a disadvantage if later you have a dispute with the seller.
When you buy used, there’s a right way and a wrong way to do it. For example, you need to have the vehicle inspected by an independent mechanic of your choosing as a condition of purchase. And purchase, don’t lease!