Are older people getting ripped off with car leasing? (lease, vehicle, SUV)

[Avalon08]

I've had two older neighbors and a cousin lease vehicles recently, with no idea how leasing really works. They are trading their paid-off vehicles and coming out with a new leased vehicle. My one neighbor traded in her SUV worth $14K, the salesman told her she could lease to keep the payment low, gave her $10K for her vehicle but used it as the down payment on the lease! She thought she was getting that money back and went back and complained, but he explained he did it that way to keep her payments low, like she wanted. She also ended up with a vehicle that's a lot more loaded than she needed, but since her payments are only like $200, she thinks she got a deal. Well, yeah, with a $10K cap cost reduction, I guess you would get a $200 payment!

Another elderly neighbor leased a Honda, got in an accident and blamed the car for the accident. Said she didn't want the car anymore and left it at the dealership. Not understanding she's still responsible for the lease, and now the car is worth less because it's been in an accident.

My cousin leased a truck (again, trading in his truck as a down payment on the lease)...I mentioned that I never put down payments on a lease and he said "Well, you have to put SOMETHING down...don't you?".

Another elderly neighbor leased an expensive Caddy with a 10K mile/year allowance. No way he drives 10K a year, but he's probably turning in these vehicles with way lower mileage than was calculated for the residual...and not getting a darn thing for it.

I just feel bad for these people, and I'm feeling like they're getting bamboozled. But, not having been in the room with them, I don't know what was actually explained. Thoughts?

[pknopp]

You don't know but we are supposed to?

[Vision67]

You can't fix stupid.

[Electrician4you]

A fool and his money are soon parted.

People will always be taken advantage of by someone. Friend, family member, Car dealer, mechanic, contractor, investment guy etc. And while I sympathize with people that are bamboozled it’s YOUR own personal responsibility to check what you are buying or investing in.
There are pros and cons to leasing. To each his own.

Btw the dealer did nothing wrong as they set up the payment to what the lady wanted.
The old neighbor could sell the car himself for more if the car is worth more due to low miles.

[SWFL_Native]

The biggest generations of American nothings exists today. Literally they blame every single thing on someone else.

Don’t be lazy, don’t be ignorant, don’t be “that guy”.

Just do the f’ing math, it’s very simple!

[somebodyfromnc]

It sounds to me like they let themselves get taken advantage of.

I mean who the hell thinks you can just take the car back to the dealership and leave it, and that you're somehow magically off the hook for the contract you signed?

[BrianGC]

Those people didn't do research before a major financial decision.... they ripped themselves off.

[Mr_Geek]

It's not an old person thing, it's a dumb person thing.

[easy62]

I lease and I'm 64 but I know what im doing, Im retired so leasing makes sense to me because i don't have to drive everyday to work, Im covered under factory warranty for the entire lease, payment is much lower for a $28,000 vehicle , and i get a new vehicle every 3 years. Ive don't the vehicle purchase routine for many years starting in the 1970's before leasing was popular. So for me leasing works and if I want to travel I fly and rent a vehicle.

[JONOV]

I knew a few older folks that liked leasing because they'd have a bunch of equity in the lease because they only drove 3800 miles a year.

Leasing isn't some new fangled scam trotted out by dealerships. Its been around as a consumer product for at least 30 years.