US Edition"Small Amount, Big Risk": Attention to Car Leasing Traps, Ufc Alert-What to Choose
7 Articles
7 Articles
Financing systems favoured by the French, leasing with purchasing option and long-term rental hide many pitfalls, according to a study by UFC-Que Choisir which calls for more protective changes for the consumer.
LOA, LLD... How does car leasing work? On paper, car leasing has everything to please and is a growing success: in 2024, 66% of new private vehicles registered in the name of natural persons were financed through leasing. The principle of this attractive business practice: the driver benefits from a new vehicle, mostly a SUV, without becoming owner, but pays monthly rent. On average, this contract is 3 or 4 years, and the driver pays each month …
The association UFC-Que Choosing alert on systemic drifts of car leasing contracts (LOA and LLD). An in-depth study highlights exorbitant restitution costs, abusive terms in case of breakdown or unexpected, and a dangerous legal vacuum for the LLD. The association requires a overhaul of the legislation to better protect consumers.
Leasing, with or without an option to buy, has become the preferred financing method for French people to acquire a new vehicle. However, behind the attractive monthly payments lie formidable contractual conditions in case of problems. The consumer protection association is sounding the alarm and demanding an urgent change in the law.
The UFC-Que Choisir conducted a survey of 1,285 consumers and studied nearly 1,000 testimonials of litigation. The results are instructive.
The consumer association UFC-Que Choisir warned Wednesday of the "trapped" nature of certain long-term car rental contracts, a practice in full expansion in France, and asked the public authorities to act.
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