Car ownership is almost universal these days and many households have more than one car. Vehicle leasing is a very popular way of obtaining a vehicle and has allowed many households to have access to a vehicle that they could not afford to pay for up front.
Sadly, any area of growth is attractive to scammers. There are unscrupulous individuals who see this as a lucrative area to make money out of unsuspecting customers.
There are plenty of customers for them to choose from. According to the latest Quarterly Leasing Survey from the British Vehicle Rental & Leasing Association, whilst overall car leasing was down by 3%, personal contracts were up by 12%.
Here is some guidance on how to spot a scam and protect yourself.
Social media scams
It seems that the scammers are posing as lease companies on social media sites and that Instagram is particularly popular. They are posting ads that will appeal most to those who have a less than ideal credit history. People with poor credit scores and little savings will be most attracted to them because they offer deals that do not require a deposit and which require no credit card checks. As a result, those who can least afford it are handing over money to the scammers and receiving nothing in return. The fraudsters are even faking membership of the BVRLA and other industry bodies to make themselves look credible.
How to protect yourself
If you are looking for legitimate car leasing Leicester brokers such as https://leasing.totalmotion.co.uk/ will always follow rules stipulated by the Financial Conduct Authority. This means that they will always carry out thorough credit and affordability checks which are done to protect you and them. Any company that claims that they do not have to carry out these checks is highly likely to be fraudulent. It is simply not in a lender’s best interests to lend money to people who cannot afford to pay it back. The best option here is to walk away.
Adverts that ‘pop up’ on social media should always be checked out. It is best to shop around for this type of service and to do your own research. Ask friends and family for recommendations and always proceed with caution. If something appears too good to be true – it probably is!