Seven Keys for Finding the Best Auto Lease
15 December 2000
Consumer Reports Arms Consumers With the Seven Keys for Finding the Best Auto Lease
YONKERS, N.Y.--Dec. 14, 2000--Comprehensive report may save motorists thousands on their next lease
Survey shows that many people fail to negotiate properly
One out of every three new cars, minivans, sport-utility vehicles, and light trucks that consumers drive off dealer lots today is a leased vehicle--up from fewer than one in ten a decade ago. But an analysis by Consumer Reports shows that many lease customers may be unwittingly spending far more than they need to.
Consumer Reports has evaluated scores of lease ads appearing in 10 metropolitan newspapers scattered across the United States and turned up dozens of offers that could mislead or even deceive an inattentive shopper. The magazine's analysis of terms quoted by behind-the-scenes finance companies (which actually write the contracts for 30 of the most commonly leased cars, SUVs, and light trucks) revealed that the cost of leasing identical vehicles can vary by thousands of dollars over the life of the lease.
"Consumers shouldn't be fooled into thinking that leasing a vehicle is either easier, or less expensive, than purchasing," said Lou Richman, Finance Editor of Consumer Reports magazine. "Lease transactions are a tangle of arcane language and buried details that can ensnare even the most wary consumer."
Consumer Reports examines the pros and cons of auto leasing, and offers consumers the information they need to negotiate the best possible lease deal, in the cover story for its January 2001 issue. The special report includes seven tips that could save a consumer thousands of dollars on their next lease. The issue goes on sale December 19.
The checklist helps consumers to determine:
| -- | Whether they should lease or buy their next vehicle. |
| -- | What information to look for in newspaper ads touting a great deal. |
| -- | Why you should keep an open mind about buying a new car instead of leasing. |
| -- | How to negotiate the best possible deal on a leased vehicle. |
| -- | How to compare offers from different finance companies. |
| -- | How to plot your end-of-lease strategy before you sign. |
| -- | How to avoid getting taken for a ride at lease-end. |
As part of its analysis, Consumer Reports commissioned a special, nationally-representative survey of more than 300 recent lease customers. It found that a majority of the respondents had done a poor job of shopping for a vehicle, failed to negotiate the most favorable terms, and faced costly end-of-lease charges.
Among the survey's other results:
-- Just over one-half of lease customers compared the cost of leasing
to buying. -- Only 47 percent of those who leased visited more than one dealer. -- 13 percent of survey respondents drove more miles than their lease
allowed, adding a median $500 to overall costs. -- 21 percent of survey respondents wound up buying the vehicle when
the original lease term expired.
The report includes a short self-test to help consumers determine if leasing is the right option for them. A financial worksheet helps guide consumers through the process of comparing the true monthly cost of leasing a new vehicle against the cost of buying it. Both the questionnaire and worksheet can be accessed free online at www.ConsumerReports.org.
The January issue of Consumer Reports will be available December 19 wherever magazines are sold. To subscribe to Consumer Reports, call 1-800-234-1645. Information and articles from Consumer Reports can be accessed online at www.ConsumerReports.org. Consumers can also purchase a New Car Price report from Consumer Reports online, or by calling 1-888-321-9563.
