When leasing was introduced, every other family went out and got a car out of their means. Only now are people realizing the realities of borrowing money. The lucrative loan offers were not scams - unfortunately people were too quick to borrow massive amounts of money thinking they'd be able to pay them off. While leasing is a new concept in Pakistan, people are now realizing there are real repurcussions for defaulting.
Please dont make this a moral debate. Banks will NEVER reposess a car after one missed payment, instead they'll spend some time accomodating you. Only then, when you refuse to mediate will they forcebly take back their car. Note in the article they only reposess after the third attempt.
If you've planned your finances, leasing can be a sensible decision. Unfortunately many people have not realized leasing is a formal agreement, where deadlines have to be met. You're no longer borrowing money from your parents.
BilalYou are deeply mistaken. Review a lease agreement. The car is NEVER yours until the lease is paid off. Your name is co-signed. The bank owns the car. Legally, if you refuse to pay you're STEALING THEIR CAR. The bank owns your car, you are leasing it from them. Although reposessing the car is unethical, they are acting within the law when they confiscate their property. No judge will punish the bank for reposessing a car if they can demonstrate you were trying to hide it from them. Afterall, they own the car.
The Banks are justified in reposessing your car if you refuse to pay your loans. If you can cheat,run, and hide your way away from them why should they respect your privacy? You have their car! They paid for it, you're paying THEM in installments! We arent talking about innocent victims here, we're talking about crooks who refuse time after time to honor their policy agreement.