Reply
Super Contributor
Posts: 7,132
Registered: ‎02-27-2013
0

Re: AMEX Card Auto Purchase?

Carmax doesn't negotiate on prices :/

What I've been doing is to get an appraisal at carmax, then bring it to other used car dealers that guarantee to beat carmax's offer. Sometimes it's a couple thousand more, if not it will still be a couple hunred more in the worst case scenario. Still not as good as what I could get if I had sold private party, but having to make multiple appointments with interested buyers and letting them test drive the vehicle just seemed to be too troublesome.

 

Main reason why I'm interested in finding more about the lease is that it seems that I would have lost less money for my SLK if I had leased it as opposed to buying and then selling it. I did get into an accident with that car though (someone rear-ended me), so that affected the price of the car as well.

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Senior Contributor
Posts: 4,694
Registered: ‎02-23-2011
0

Re: AMEX Card Auto Purchase?


enharu wrote:

Main reason why I'm interested in finding more about the lease is that it seems that I would have lost less money for my SLK if I had leased it as opposed to buying and then selling it. I did get into an accident with that car though (someone rear-ended me), so that affected the price of the car as well.


Yes, in lieu of a tax benefit, the cost of ownership is higher if you had leased then owned the SLK, as opposed to owning it outright.  The purpose of leasing isn't really to own the car, but you negotiate the best price you can, just in case you change your mind at the end of the lease.

 

Leasing is ideal when it's tax deductible in a low interest rate environment for those who don't wish to "own" the car.

 

In your case, if the accident occurred during the lease, if there's a "gap" in the insurance reparation and pre-determined price you had agreed to pay, you may be liable for that difference, unless you had gap insurance coverage.

Senior Contributor
Posts: 4,694
Registered: ‎02-23-2011
0

Re: AMEX Card Auto Purchase?

[ Edited ]

enharu wrote: it seems that I would have lost less money for my SLK if I had leased it as opposed to buying and then selling it. 

Unless you can deduct the lease cost from your taxes, this is true.  If you were in a high tax rate in a State like CA, leasing would cost you less than if you had bought the car and sold it in two years after driving it.

Super Contributor
Posts: 7,132
Registered: ‎02-27-2013
0

Re: AMEX Card Auto Purchase?


Open123 wrote:

enharu wrote: it seems that I would have lost less money for my SLK if I had leased it as opposed to buying and then selling it. 

Unless you can deduct the lease cost from your taxes, this is true.  If you were in a high tax rate in a State like CA, leasing would cost you less than if you had bought the car and sold it in two years after driving it.


Ah I see. I'm in Socal, so yea. I'll definitely consider this option when I'm shopping for a car. Thank you so much! The info really helps a lot.

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.