Book Opener

Purchasing a defectiveautomobile has beena major consumercomplaint for manyyears. To address thiscomplaint, individualstates have enacted“lemon laws.” Theselaws are designed toprotect consumers whenthey buy defectiveautomobiles. The lemonlaws of most states areexplained at www.cartalk.cars.com/Tools/lemon-states.pl.Leasing a New VehicleA popular alternative to buying a vehicle is leasing one, but thismethod is the most expensive way to acquire a car. A low down paymentand smaller monthly payments are the main advantages of leasing(see Figure 16.2). Leasing is also useful for young professional peoplewho have high incomes but little or no savings accumulated. Leasing isnot the most desirable way for average consumers to obtain cars, however,because you make a lot of payments and end up with nothing totrade in toward your next vehicle.llllWhen you lease a vehicle, you have the right to:Drive it for an agreed-upon number of months and miles.Turn it in at the end of the lease, pay any end-of-lease fees andcharges, and “walk away.”Buy the vehicle if you have a purchase option.Take advantage of any applicable warranties or recalls.However, you may be responsible for excess mileage charges, excesswear charges for body damage or worn tires, and charges for endingyour lease early.Consumer Leasing ActThe Consumer Leasing Act is a federal law requiring businessesto tell you about all of the terms of a lease of personal property. Thisinformation can be used to compare different leases or to compare thecost of leasing with the cost of buying.Federal law also regulates advertisements of leases. When certaintriggering terms are used in a lease ad, they trigger the need to discloseadditional information. These terms include the amount of any paymentand a statement of other required payments. If an ad mentions theamount or number of payments, specifies a particular down payment,or states that no down payment is required, it must also disclose the totalnumber of regular payments, the consumer’s responsibility at the endof the lease, and whether the consumer may purchase the property.Buying a Pre-Owned VehicleA pre-owned vehicle may be purchased from a new car dealer, aused car dealer, a car rental company, or a private party. Sometimesbanks and loan companies sell cars and trucks that have been claimedbecause someone didn’t make payments. You can also search for a preownedvehicle online.Buying from a DealerA used car dealer may have a large selection of cars, but often doesnot maintain facilities to service the car after you buy it. New car dealers,342 Unit 3: Understanding Consumer Law