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Seattle USA said:
Just talked to my dealer. An interesting option for those that were just going to pay all cash anyway is called a prepaid lease. Just like a normal lease (interest rate, residual, term, miles alloted), except that you write one check at the beginning, and there are no monthly payments. At the end of the term you hand over the keys and walk away. Interest rates are lower because its all prepaid, and obviously the initial check is lower as well. Most useful for those who like to play with cars for a period of time and then get a different one.
Anyway, if you were going to pay all in cash, ask them what the cost of a prepaid lease would be and then decide if it makes sense.
I had heard about this as well SUSA - thanks. The one think I need to get clarity on (maybe Revvv can help) is whether this would be allowed in New York state, because it is still technically a lease, and therefore probably not legitimate.
Yet another option that a dealer informed me about was making a bullet payment (similar to a prepaid lease), but on a loan instead of a lease. There is no security deposit, no first month's downpayment, and you can return the keys at the end of the ownership period. HOWEVER, the one downside on this is that since you effectively purchase the car for the duration - you pay sales tax UP FRONT for the whole value of the car, which you can't claim a refund back at the end of, say, two or three years when you're done playing around.
No easy answers here...