| You hear these ads on the radio and see them in | | | | the payments could be lower than they are in |
| the newspaper all the time. They rely on your | | | | your current loan, so you think you're saving |
| brain to trick you, or more realistically they prey | | | | money when in reality you just got shafted! |
| upon the human instincts of greed and the desire | | | | Their advertisement made you think that trading |
| to get something for nothing, as if the | | | | in a car releases you from your obligation to that |
| responsibilities of your current lease or auto loan | | | | old car. It does not! This misunderstanding gets a |
| just magically vanish. You can not just dump a | | | | lot of people deeper into financial trouble. You are |
| lease or loan, it's a contract and breaking the | | | | actually taking on double your current debt, when |
| contract will result in stiff penalties. | | | | you believed you were dropping one debt for |
| When a car dealer offers this magical option to | | | | another and buying a new car. If you are in an |
| you, they do get you out of your current lease | | | | automobile lease or a loan now, it's best to stay in |
| or loan, but payoff penalties must be paid to your | | | | it until the end. If you are upside down on a loan, |
| leasing company to end the contract prematurely. | | | | this is not the time to trade in the car. You need |
| Contrary to how they may make it seem, the | | | | to delay trading until the car is worth more than |
| auto dealer is not doing any favors at all for you; | | | | what you still owe on it. One thing you should do |
| they just want your trade in so they can give | | | | is try to sell it privately. |
| you far below market value for it, while selling | | | | By mixing a trade-in with a new car purchase, |
| you a new car at as high a profit as they possibly | | | | you will lose the maximum amount of money |
| can. Then they resell your trade in for a high price | | | | possible. Don't ever believe you walked off ahead |
| and make a nice profit, while you are stuck | | | | on a trade in. No one ever has and no one ever |
| paying off the debt load of 2 cars. Do you really | | | | will. If you really need to get out of your lease, |
| think they pay for all the overhead of the big | | | | change your strategy from ending a lease early |
| fancy buildings and all of those employees by no | | | | to a strategy of transferring your lease to |
| making money? | | | | another buyer via an auto lease trade. You can |
| The way that car dealers make this look | | | | find reputable companies online willing to do this. |
| attractive is by extending the payments over a | | | | Remember the car dealers are in the business to |
| longer period of time. The more months they add | | | | make money and they are going to make money |
| to the loan, the lower the payments so you don't | | | | on the car they sell you as well as your trade in. |
| notice. As a matter of fact, it's conceivable that | | | | |