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Enterprise Fleet managment, a ripoff?

Enterprise Fleet managment, a ripoff?

Old Jan 9th 2014, 11:58 pm
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Default Enterprise Fleet managment, a ripoff?

Hi,

I applied to ExpatAutoRide to get a car and my application was forwarded to Enterprise Fleet management since i am already in the US. By the way International Autosource also forward the application to them.

The agent called up a dealership and got me a reasonable quote for a new Toyota Corolla. The APR which Enterprise is offering me is 5.5% with 20% down which is Ok with me too. However, the following they are asking as fixed costs:
1. Application fee: $900
2. Managment fee $40 each month for 48 months:40*48=1920
3. Service charge due at lease termination: $400

The total of above comes to $3220. Is it worth financing through them?

Thanks
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Old Jan 10th 2014, 12:18 am
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Default Re: Enterprise Fleet managment, a ripoff?

I don't like leases, I think they're all a rip off. I don't know if the fees you're being asked to pay are normal or typical. The monthly $40 "management fee" sounds like a pure rip off!

Either go to another dealer and ask for a quote on a similar lease, or go and tell them you like the car, but the application fee and management fee are unacceptable and see what they say.

At the end of the day, it's a matter of how much you want that car and what alternatives you have.
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Old Jan 10th 2014, 12:53 am
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Default Re: Enterprise Fleet managment, a ripoff?

Looking at it the other way, the fixed costs for a four-year period are $805/yr. If your loan is in the $20k ballpark that would translate into an equivalent of $805/$20000 = 4% of additional interest in the beginning, effectively going up as you pay off the principal.

So yeah, sounds something like a ripoff to me, but depends on whether you want/need that new car enough to pay close to 10% in interest and fees, and what the options are.

I'm assuming we're talking about financing and not a lease?
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Old Jan 10th 2014, 12:57 am
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Default Re: Enterprise Fleet managment, a ripoff?

Everything sounds like a ripoff to me. I would tell them to shove it. You should be able to get a loaded top of the line Corolla on a 48 month lease for around $250-$280 a month with no money down. There may be some dealer fees up front that you may or may not be able to negotiate but no where near what you have been quoted. Maybe $800 or so total, including the first months please payment.
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Old Jan 10th 2014, 1:31 am
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Default Re: Enterprise Fleet managment, a ripoff?

Originally Posted by trumee View Post
Hi,

I applied to ExpatAutoRide to get a car and my application was forwarded to Enterprise Fleet management since i am already in the US. By the way International Autosource also forward the application to them.

The agent called up a dealership and got me a reasonable quote for a new Toyota Corolla. The APR which Enterprise is offering me is 5.5% with 20% down which is Ok with me too. However, the following they are asking as fixed costs:
1. Application fee: $900
2. Managment fee $40 each month for 48 months:40*48=1920
3. Service charge due at lease termination: $400

The total of above comes to $3220. Is it worth financing through them?

Thanks
It does sound like a rip-off since your non refundable 20% down should cover the costs. Also you didn't state the term of the lease and are there monthly principle payments plus the APR? If there aren't principle payments, then the extra charges would probably be very reasonable for a 3 year lease but if you have a $200 per month principle payment as well, then they'd likely get back over 75% of the cost on termination of a 3 year lease.
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Old Jan 10th 2014, 2:37 am
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Default Re: Enterprise Fleet managment, a ripoff?

This is a financing and not a lease although they call it "Open-End (Equity) Lease Rate Quote" with a Reduced Book Value at 48 Months to be '0'.

The monthly charge i have been asked to pay over 48 months is $369. Unfortunately, i have zero credit history having recently moved here so i am not sure how much interest a dealer will charge me.
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Old Mar 4th 2014, 2:29 pm
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Default Re: Enterprise Fleet managment, a ripoff?

I am currently going through the same as Trumee to lease&buy a Jeep Grand Cherokee.
With Enterprise's Open End lease there are fees stacked on fees, many of them fixed which makes it seem a waste to buy a cheaper vehicle.
What I am being offered:
5.5% Interest over three years
$25 a month 'admin fee', this adds another 1.3% (I got them down from $40)
And then maintenance of $42 a month which would add another 2.2% but I really don't know how real it is.
I also have the inital application fee of $995.

Has anybody used them? Do more costs appear?
I understand from here that as I have arrived VW is my only other option but I really do not want a VW!

Finally, I cannot believe how much we get ripped off for new cars in the UK, the same car is £37k versus $30k here.

Thanks
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Old Mar 4th 2014, 7:28 pm
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Default Re: Enterprise Fleet managment, a ripoff?

Firstly, there are huge differences between buying a car in the UK and buying one here, but that's for another thread.

Secondly, you may be able to negotiate a better interest rate if you have someone with good credit to co-sign. I was offered 19.9% on my first (used) vehicle (through Carmax), but I negotiated with the bank and got 9.9% using my future FiL as guarantor! This is when interest rates were much higher than today, so I offer it as an example.

Thirdly, avoid a LOT of headaches and DON'T BUT THE JEEP! They are getting terrible reviews and the reliability and resale values suck!
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Old Mar 4th 2014, 9:48 pm
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Default Re: Enterprise Fleet managment, a ripoff?

Jeeps are very popular in Central Oregon and do seem to hold their value. I am driving a Jeep Wrangler now, it kept me safe when I had to do a 450 mile round trip to Portland to get my dogs during a massive snow storm.

Aside from the choice of car....
I declined the Enterprise offer and provided feedback to International AutoSource, IAS have kindly opened up their preferred package (Usually only available to those yet to arrive) so whatever car I get I will have no fees and a reasonable interest rate ($5k better for the jeep).
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Old Mar 4th 2014, 10:02 pm
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Default Re: Enterprise Fleet managment, a ripoff?

Originally Posted by SkyBlueInOregon View Post

Aside from the choice of car....
I declined the Enterprise offer and provided feedback to International AutoSource, IAS have kindly opened up their preferred package (Usually only available to those yet to arrive) so whatever car I get I will have no fees and a reasonable interest rate ($5k better for the jeep).
Get a price from IA and if you don't mind a trip check for prices from NW Jeep in Portland or a Jeep dealer in Boise. My stepson tells me car prices are cheaper in Boise than Oregon. Portland dealers are normally cheaper than eastern Oregon dealers and NW Jeep is where I will go for my next Grand Cherokee. Not sure what spec Grand Cherokee you are looking at but the Laredo goes for under $30k in Portland with not much haggling.
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