i need a few details about this. i was told that at the end of the contract you are in no way shape or form going to be upsidedown when it is time to resign or end the contract, is this true? and also what happens if your ballon payment is $15,000 and the truck is only worth $10,000? thanks for any all help!!

 

What you really need is a blank contract so you can read the fine print. The terms actually vary from state to state, depending on individual consumer laws. Fundamentally, it does work like a lease- you won't be upside down at the end if there's only normal wear and tear, you're not over mileage, no damage, etc. The downside is you'll be hugely upside down midstream in the contract- much more so than on a conventional buy. you'll also pay more interest- both in amount and rate, using this option. Caveat emptor- it's not for everyone.

 

Moved to appropriate forum

 

In my experience, the mileage limit is the kicker. Usually around 12k miles per year or less for a lease. I drive way more than that, unfortunately. That reason alone has prevented me from considering a lease in the past.

 

You can buy extra miles if you want. I've done it before and it worked out great cause I used to drive more than 12,000 miles a yr. It's been awhile so, I don't know how they do it now but, it used to be, you buy them in blocks of 1500 miles. Another thing, if you buy extra miles, what you don't use of them, you get money back.