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Frequently Asked Questions
What do I do if I am upside down (owe money at the end) on a lease?
Answer courtesy of Michael Scott Kranitz www.leasewizard.com
If you are upside down on your lease, you are like most people. Leases are designed to keep you that way. Remember, you are benefiting from a lower payment during the term of the lease and only in rare cases can you come out at the end with "equity." Equity in a lease means you can sell the vehicle for more than it will cost you to exercise your purchase option under the lease. If you are upside down, DO NOT believe that "trading in" your leased vehicle will get you out. It won't. The amount by which you are upside down will simply be lumped into the new lease and you'll be even further in the hole.
Fortunately for you and others like you, there are a new crop of services that allow you to market your unfinished lease to others who might want to assume it. Just go to leasesource.com or carwizard.com to take advantage of these services.
If you are "overcharged" for your lease, you need to determine whether you were defrauded or simply irresponsible in not learning more about your lease before signing. Fraud does occur, but it's usually the lessee who drops the ball when it comes to making sure the deal is square. To determine whether you were overcharged and by how much, check out the LeaseWizard Lease & Loan Analysis Kit (www.leasewizard.com). If it's a whopping number, you may have the beginnings of a fraud case, depending on what was represented to you before you signed. Most state fraud statutes will require that you prove a deliberate (and material or significant) misstatement or omission of fact by the salesperson. Check your notes if you have them. If you think you have a fraud issue, see an attorney. In most cases, however, it's just a painful lesson that you should have done your homework first.
