Explanation:

Ads for “great leases” all have a catch. Here’s what those ads don’t tell you.

  • Today’s average driver drives 15,000 miles annually. If you lease a vehicle with a plan for less than 15,000 miles, you’ll end up paying extra mileage fees for every mile over 15,000.
  • Most people don’t have the deposit that’s mentioned in the ad. Getting that deposit usually involves borrowing which involves more financing fees.

Here are some examples:

2006 Honda Accord
What the ad says: What is in the fine print:
*$189.00 x 36 Months

*$2,750 deposit
12,000 m./yr .15 cents over
First month’s payment up front
($2,750+$189 = $2,939)
The Real Payment Amount:
  $189.00
  + 92.42 The monthly amount to finance $2,939 at current rates.
  + 37.50 The monthly amount for miles over 12,000.
  $318.92 Effective monthly payment

2006 Chevrolet Cobalt
What the ad says: What is in the fine print:
*$68.00/Mo for 27 mos

*First month’s payment up front
$895.00 Bank Fee
$2500.00 Down (plus $68)
12,000/m/yr .20 cents over
The Real Payment Amount:
 

$ 68.00
  + 41.37 The monthly amount to finance $895 at current rates
  + 113.11 The monthly amount to finance $2,568 at current rates.
  + 50.00 The monthly amount for miles over 12,000.
  $272.48 Effective monthly payment

2006 VW Jetta
What the ad says: What is in the fine print:
*$269.00 /36 mos

*10,000 Mi/yr .15 cents/mile over
The Real Payment Amount:
 

$269.00
  + 62.50 The monthly amount for miles over 10,000.
  $331.50 Effective monthly payment

2006 Hummer H3 -- $33,060.00
What the ad says: What is in the fine print:
*$299.00 /mos/27mos

$1999.00 down
10,000 mi/yr .20 cents 1 mile over
The Real Payment Amount:
 

$299.00

 

+ 88.25 The monthly amount to finance $1,999 at current rates.
  + 83.33 The monthly amount for miles over 10,000.
  $470.58 Effective monthly payment
   

 

 




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