Car Leasing: The Hidden Costs You Need to Know

New Jersey Car Salesman Highlights Hidden Costs of Leasing Buying or leasing a car is a significant financial decision. Recently, a video by Joseph Rodriguez, a car salesman from New Jersey, went viral, shedding light on often-overlooked aspects of car leasing. Rodriguez, whose online handle is @jrodsellscars, emphasizes the importance of understanding the financial implications before signing a lease agreement. "When you lease a car, the payments you're making don't actually go towards anything," Rodriguez explains in his video. "Think of it as a long-term car rental." This point underscores the key difference between leasing and buying—with buying, payments reduce the loan principal, building equity. With leasing, you're essentially paying for the privilege of using the vehicle for a set term. Another crucial point Rodriguez makes is the risk associated with a total loss accident. "If your lease was totaled, you don't get a single penny of that down payment back." This highlights a significant financial risk for those who put money down on a lease. The unexpected cost can be substantial. Finally, Rodriguez warns about mileage stipulations. He uses an example of a 10,000-mile-per-year lease over 36 months. Exceeding the 36,000-mile limit results in significant penalties. He explains that exceeding the limit by 30,000 miles could cost thousands of dollars in extra fees, depending on the per-mile charge. Rodriguez's video serves as a cautionary tale, urging viewers to carefully consider the terms and conditions of a lease agreement before committing. His clear explanations and real-world examples provide valuable information for potential car lessees.