Lease Termination Fee Scam
Lease Termination Fee Scam: How It Works
This is the mother of all leasing scams. When closing the agreement, you ask the dealer what would happen if you terminated the lease early and what would be the penalty for it.
“Absolutely no problem,” he says. “There is a termination fee of $289.” He is not lying, but purposely omits to tell you that the “Termination Fee” is only one of two penalties and is just a small administrative fee.
The other fee is an “Early Termination Penalty” (or something very similar, depending on the company) and that's a few thousand dollars!
Watch the video below to see more scams pulled by dealers and things to check for when buying a car:
Lease Termination Scam: How To Avoid
First of all, make sure you really want the car for the period of time you will be leasing it. Secondly, read the small print and ask the dealer as many questions as you can when it comes to additional costs that he may not tell you about.
Lease Termination Scam: How To Report
Make your family and friends aware of this scam by sharing it on social media. You can also officially report the questionable auto dealerships to the Federal Trade Commission using the link below: