Car loans

I don't think you even need to have been employed for six months... at Citigroup, for example, your most recent pay stub should do the trick. Honestly, I'd just check with your bank directly. Doing it through a friend seems like a bad move.

Gary Moore4 said:I don't think you even need to have been employed for six months... at Citigroup, for example, your most recent pay stub should do the trick. Honestly, I'd just check with your bank directly. Doing it through a friend seems like a bad move.

Look, let me tell you something—every single major bank out there is going to want to see an average salary from at least the last three months. Given that this guy has only been on the job for ten measly days? I highly doubt any bank is going to hand him a loan... unless he manages to find a co-signer to back him up.

I'm honestly stuck on the same thing—is it better to go with a loan or just stick to Enterprise?
I’m looking at picking up a newer Ford, but I've got a deadline to meet by July...

Hello there, everyone!

Since we are already discussing the nuances of Enterprise agreements versus traditional loans... I shall refrain from starting an entirely new thread just yet:

I have noticed a recurring sentiment that leasing tends to be the superior, more cost-effective choice compared to taking out a standard loan.
However, after spending some time browsing this site, I find myself somewhat unconvinced by that logic...🤷

To put it briefly, the calculation suggests a monthly payment of approximately $22,000, which comes out to about $395.
This is based on a 60-month term, which is the maximum duration available.

As I have only recently established myself as a self-employed professional, any insights or information you could provide would be most appreciated.

Thank you!

If you ask me, a standard loan beats Enterprise any day. The interest rates aren't even that different. The real kicker is that with Enterprise, you’re stuck handing over at least 20% upfront—and some places demand way more depending on how long the term is. That only works if you’ve already got cash burning a hole in your pocket ready to drop as a down payment. But honestly, if you've got that kind of savings anyway, why not just take a smaller loan and use your cash to lower the monthly hit?
I'm voting for the loan!!!👍

I mean, the real upside with Enterprise is that you can just roll through with a three-year-old Ford, swap it out for something newer, and they basically just settle the difference between the old one and the new one... it’s kind of like having a permanent rental agreement, I guess...

p.s. thanks for the link, by the way, since I’ve been spending way too much time lately browsing for cars online...😁

Aha, thank you all for the responses...
I have some savings set aside, roughly a third of the total cost, though I honestly can't see why anyone would find an Enterprise lease more advantageous than just buying.
Oh, regarding the trade-in process—can I assume that if I pay off 60% of the car's value over, say, three years (let's call it $90,000), that amount gets deducted from the price of a new one? Or does the vehicle undergo a formal appraisal first, and then that specific amount is applied toward the new purchase?

And how exactly did Vicky calculate that the monthly payments for a lease would end up being lower?
There was some sort of formula involving 1% of the total price... but it wasn't entirely clear to me. Or perhaps that logic applied to someone who already owns a vehicle, where its current value acts as a credit against the next one...

Gosh, it’s all quite complicated.

One more question, since I seem to be getting conflicting information here...
Is it possible to purchase a vehicle under a business entity and still claim mileage reimbursements, or are those reimbursements strictly reserved for when you use a personally owned vehicle for official business purposes?

1. You’ve got to subtract the second value from the first one to get the right number
It gets a little tricky though, because you have to account for the two different types of Enterprise deals 😉 and honestly, your monthly payment is going to depend heavily on which route you take
I didn't catch where Vicky pulled those specific figures from, I might have just missed it in the thread...
2. I can't say for certain since I don't use my personal accounts for business stuff, but my gut tells me you can't really pull that off, especially since that Ford is technically a business vehicle by default

I can't even find the thread anymore... goldengull3 was acting all high and mighty over on some Ford forum, claiming that taking out a loan for a Chevrolet results in a higher monthly payment than just opting for Enterprise 😍
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goldengull3, my apologies, I had a typo in your name

Andrew Sanchez572 said:I can't even find the thread anymore... goldengull3 was acting all high and mighty over on some Ford forum, claiming that taking out a loan for a Chevrolet results in a higher monthly payment than just opting for Enterprise 😍
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goldengull3, my apologies, I had a typo in your name

If you’re running a business or a small LLC—especially if you own the thing—leasing makes much more sense. When you factor in paying out of gross business revenue rather than what's left after you've already cleared your taxes, and you write off the vehicle as a business expense, the actual cost ends up being about half what you think.

Sophia Thomas55, I suggest you go sit down with your personal banker at Bank of America and have a real conversation. It makes a massive difference whether you're working for the federal government, ExxonMobil, or running your own shop. We're just throwing darts in the dark here.

Generally speaking, leasing for individuals in the States doesn't always pan out because those high down payments and collateral requirements can be brutal.

Hmm, quite an interesting perspective. I wonder how this applies specifically to those of us operating as sole proprietors... 🤣

My sincere thanks to everyone for the input. Regardless, I think I’ll have to give my accountant a bit of a hard time about this... 😍

So, I'm thinking about finally picking up a new Ford—fingers crossed! Does anyone who actually knows their stuff have any advice on where I should be looking for an auto loan? Like, what would you say are the top 3 banks to check out right now, and what makes them worth the hassle? Also, does anyone know if certain banks have special deals or partnerships with specific dealerships? I’m pretty much a total newbie when it comes to this whole car-buying thing, so honestly, any tips or pointers would be huge.

Thanks!

Alright, I've pulled together some links regarding what the big banks are offering...

Bank of America - auto loans

Wells Fargo - auto loans

Citigroup - auto loans

So, I could use a little bit of help here if anyone’s got some advice to spare... I've had my own small business running for about a year now, and I'm thinking about picking up a car on credit. As the owner, can I actually qualify for a loan when the business has only been active for a year? Or maybe a dealership would go for a lease instead? I guess we'll see.

Unfortunately, I haven't seen much chatter regarding credit lines for small businesses lately... though, honestly, I’m really holding out hope that they'll finally fix that mess too.

I’ve been kicking around the idea of picking up something a bit smaller, maybe just a standard commuter car, something from one of those established companies that's been around forever...
Honestly, you’re probably better off just checking in with the bank where you already hold your accounts to see what their lease rates look like. It usually makes things a lot smoother when they already know you.

I am seeking some counsel regarding an automotive acquisition $45000. I have already submitted a deposit of $3333, and I am currently weighing whether to settle the remaining $41667 via a consumer lease agreement. My intention would be to provide a down payment of approximately 60%—which amounts to roughly $25000—and then amortize the balance of $16667 over a two-year term. To be perfectly clear, I possess sufficient liquidity to settle the entire transaction in cash immediately, but I find the prospect of maintaining a certain level of capital in my accounts more prudent. I maintain a stable career and a very healthy income stream, so solvency is not a concern. That said, if anyone here possesses a more sophisticated financial strategy or a superior alternative, I am all ears.

Lara said:I don't quite follow the question... are you debating whether to pay cash or opt for a lease?

Precisely that. It comes down to whether one prefers maintaining a larger liquidity cushion—God forbid anything goes wrong—via a lease, or simply paying cash upfront to reduce the balance while ensuring the vehicle is fully owned outright. Thank you.

I don't even get what you're asking here... are you struggling to decide whether to just drop the cash upfront or go with a lease?

ironsurfer10 said:Leasing is simply a losing proposition for individual consumers.

Could you elaborate on why you believe that’s the case?