Used-Car Leasing: Dangerous New Ground for Fraud and Abuse

Leasing used cars has taken off. Catering to consumers with money troubles, most of the downsides are hidden: interest rate caps can be sidestepped, fewer financial disclosures are required by the dealers, repossession is extra easy as the dealer still owns the vehicle, and lease terms can’t be reduced by a bankruptcy judge, among other traps for the consumer. Many of these vehicles will be out of warranty, leaving customers on the hook for potentially expensive repairs on a vehicle they do not own! This will also lead many consumers to buy over-priced “extended warranties” — exposing them to some more rip offs on over-priced, under-performing services.