Posts by Kimberly Lopez65

Richard Lewis16 said:It’s totally doable to either get them to shave a bit off the price—you know, that whole "let's negotiate the contract terms" dance—or just insist they throw in some higher-end equipment instead

but you really have to be the one to push for it, because you've got to play as hardball as they do... there's honestly no shame in being a little ruthless when it comes to these things 😉

Hey, is it actually possible to get a discount on a floor model? 😉
Like, you just walk in there and tell them you want the exact unit sitting right in front of you because you don't feel like waiting months for a shipment to arrive?

From what I've gathered, they shouldn't be charging the full MSRP for display models compared to something still in the box. Or am I totally off base here? 🙂

Look, if these salespeople are going to act shady, why shouldn't we act the same way as buyers? Why not try to legally squeeze them for every cent we can? 🙂

Mark Sullivan62 said:I highly doubt you'll find any better terms through a lease than a traditional loan.

First off, you’re going to have to shell out a down payment in cash, and let's be real, that’s definitely not going to be less than 20% of the car's value. Plus, you’ve got that residual value hanging over your head at the end of the lease term; that could easily be around 20%. Your monthly rent hike will likely be right in line with a loan payment, or maybe even higher. And don't forget, with a lease, you're only paying off about 60% of the total vehicle value over the term, whereas with a loan, you're covering the whole thing.

Also, I think you’re going to be pretty disappointed at the end of year five when the lease expires and you realize you’ve just been paying rent this whole time—just paying for that "right to use" it. Basically, once that five-year lease is up, you’ve got nothing to show for it; the car isn't yours, and you can't sell it. When you compare the sum of the lease payments against the total cost of a loan, the numbers will probably end up being very similar. But with a loan, you actually own the car, meaning you can sell it and walk away with some cash. Even if you opt for a lease-to-own setup, you still have to pay that residual value (that ~20% I mentioned), which, if you ask me, makes zero sense financially. If it were actually a good deal, considering how many cars Americans buy every year, way more individuals would be jumping on leases, but they aren't—so why do you think that is? Seriously, go grab a quote for a lease payment versus a loan payment and compare them yourself.

Furthermore, don't forget that with a lease, you’re forced to carry full comprehensive insurance for all five years. If you buy a car with a loan, you’ll probably handle the insurance yourself, but you'll likely only stick to the heavy coverage for the first year or two, right? I highly doubt anyone wants to be paying premium comprehensive coverage for a car that’s already 3-$1333 years old... people just don't do that.

And another thing: leasing companies push you hard to use their authorized dealerships for service, and man, that is expensive. As an actual owner, once your warranty expires, you get to choose exactly where you want to take your
vehicle.

Since you aren't the legal owner under a lease, you don't even get a say in where the car is registered. The car gets registered in the jurisdiction where the leasing company is headquartered. Most of them are based in major hubs like New York City. And in places like NYC, registration and insurance are the most expensive. The leasing company might give you power of attorney to handle the registration yourself, but not in the location you actually want.

Look at all those massive corporations with fleets of company cars headquartered in NYC but with branches all over the US—notice how all those vehicles have New York plates? That’s not a coincidence.

Look, I get it. It all boils down to the math and the fine print in the contract. I’m always stuck in this "either-or" loop. Honestly, I just don't have the heart to drive a five or six-year-old car; I'd much rather be in something fresh every five years. 🙂 Though, looking back, maybe I'm being a bit too idealistic. Maybe I should dial it back a notch—just talking to myself here. 🙂
We'll see how it plays out. I gave myself a year before making any final calls anyway. Until then, I'll just keep putting extra cash toward investments or building up the fund for the next ride. I don't actually *need* a new car right this second. My current one still runs fine, even if it is eight years old. And since it's a Korean model, maintenance has been practically nonexistent outside of standard service visits—I always stick to the dealership, which is why it’s still in great shape—gas, and the usual stuff.

Thanks, Edgar, for the deep dive on the whole loan versus leasing debate. 🙂

Mark Sullivan62 said:I’ve got a feeling there might be some 7-year leasing options out there somewhere

If you actually sit down and compare the monthly payments, I honestly think the leasing rates end up being higher

The thing is, for the entire duration of the lease, you aren't actually the owner of the vehicle; once the term hits its end, you’re stuck either handing the car back or coughing up more cash to buy it out.

With a standard auto loan, once you've paid it off, the car is yours to do whatever you want with—you can sell it, because it belongs to you.

Companies jump on leasing for all sorts of reasons, whether it's to keep certain liabilities off their balance sheets to make their financial health look better, or just to take advantage of that immediate tax deduction on sales tax.

Personally, I don't see any logical reason why an individual would opt for a lease, unless their credit score is absolutely trashed and they have zero other options...

Look, what if the leasing terms are actually better? Personally, I’m not one of those people obsessed with the concept of "ownership." To me, the "right to use" the vehicle is what matters. 😉 And you get that whether you finance it or lease it.

I’m curious about something else—how does registration and the title work? If the car isn't technically in my name during the lease term, does that mean I can, say, register it in San Francisco or out in the suburbs, provided I coordinate with the leasing company? 😉 It makes sense to me because I've never actually owned a car in my own name. Because of that, I don't get any insurance or registration discounts. Plus, registration and insurance fees are, for example, cheaper in the suburbs than they are in Washington, D.C., for the car I'm driving now (which is currently under my mother's name) 🙂 the difference (with the discount) is $300! It’s not a fortune over the course of a year, most would say, but I’d rather save that money or put it into an investment. 😉
Thoughts?

Kimberly Nguyen said:I mean, I assume they’re looking for some kind of collateral or security measures; co-signers, guarantors...

Honestly, I don't know, I usually lean toward an unsecured loan. Sure, the interest rate might take a bit more of a bite, but you aren't getting hit with all those extra fees—which, let me tell you, add up fast—and you don't have to worry about the bank holding your car hostage under some fiduciary lien.

I'm voting for unsecured too. I’ve been crunching the numbers for a new ride and I need maximum flexibility with my monthly payments. I don't want to deal with co-signers or having my paycheck garnished if things go south. I want minimal paperwork and zero headaches, which basically means going the unsecured route.

By the way, quick question... there's a decent chance I'll have enough cold hard cash in a year to just buy the car outright. Do dealerships actually give discounts to people paying cash versus those financing through a bank? Is it possible to negotiate a lower price or maybe throw in some extra features for the same cost, or am I wasting my time?

Alright, thanks, I get the logic now.

But... we're talking roughly $220 for a tow on a weekday, going from Providence to NYC?
I’ve never actually had to call a tow truck in my life, but I always assumed those rates would be way higher than $220 for a trip like that...
Either way, saving $220 when you're stuck on the side of the road definitely helps.

Michelle Chase3 said:We actually used Chase's roadside assistance this summer and it was a lifesaver. They handled everything fast and professionally. But looking at these premium bundles now, the costs are even higher than what I was paying before! 👍

I'm also taking out a loan in a few months, and since this premium tier offers a discount on loan origination fees, I've decided the whole package is worth it. One thing I'm stuck on, though—this card stuff you mentioned. I have a standard Mastercard and a Gold card. Which procedure applies to which? The Chase brochure says you get one basic deferred payment card and one basic credit card without an enrollment fee. So my Mastercard is covered, but where does the Gold card fit in?🤷

How does this actually work in the real world?
Does the bank just reimburse the costs or what?

Daniel Fisher72 said:Hey everyone, quick question... does anyone here deal with loans through classified ads or online listings?

It looks like nobody on this board is naive enough to fall for those shady loan ads. You never know what kind of mess you're getting into, and honestly, the terms at a legitimate place like Bank of America are way more predictable and secure.
Long story short: forget it. If you need cash bad enough to gamble it on some random Craigslist listing, you’re already in trouble. Stick to the banks. And if the banks won't touch you, well, good luck—it probably means they see exactly what you're worth, as harsh as that sounds. 😉