In article <9e0485ae.0309021905.4c2718e5@posting.google.com >,
roadieroger@earthlink.net (Roadie Roger) wrote:

> You are paying Interest on the full financed value of the car for the
> time you lease it. The statement that "you only pay for the part of
> the car you use" has to be taken with a grain of salt.

Hear hear!

A lease, from a technical standpoint, is really nothing but a loan with
a balloon payment and a contract with the lessor that he'll take the car
back to fulfill the balloon payment.

Of course, the lessor will demand the car back in perfect condition and
within the allowed mileage. That's the term of the contract. If it's
not in perfect condition or within the allowed mileage (see your
contract; a lease is a CONTRACT, and all terms are spelled out
completely), you'll pay for the damages or miles that are above and
beyond what the contract allows for.

A lease is really very simple. However, one point that no one
understands: from a LEGAL standpoint, a lease is COMPLETELY DIFFERENT
than a loan contract. Consumer lending is a very mature arena, and is
covered by many, many laws that restrict the lenders from pulling funny
stuff. These laws have come about over the last 50 or so years of
people buying cars and homes.

But leasing is LEGALLY a different ball game, and the protections
afforded a consumer under the lending laws don't apply. Therefore, the
lessor can pull all sorts of fast ones on the lessee, and unless the
lessee reads the contract, the lessor will win every time. And it'll
all be legal.

Most people don't bother to read their contracts, so they get screwed.
Then they come to the newsgroups and start asking questions, as if we
have copies of their contract in hand or something and can talk about
their situations.