Whether you have big dreams for retirement or you’re already retired and enjoying the good life, a proactive financial advisor can help protect your wealth. Here’s a real-life example:
Recently, one of our clients was subjected to aggressive sales tactics at a local car dealership. When she told her financial advisor about her car buying experience, he noticed some red flags and didn’t hesitate to take action, ultimately saving her tens of thousands of dollars compared to the projected lease-to-buy terms. Assembly Wealth does not offer legal counsel, but we take our commitment to comprehensive client advocacy very seriously.
Under the Investment Advisers Act of 1940, Registered Investment Advisors (RIAs) are held to a fiduciary standard, legally obligating them to act in the best interests of their clients when providing investment advice. While different financial professionals operate under distinct regulatory standards—such as broker-dealers adhering to Regulation Best Interest (Reg BI)—an independent RIA's fiduciary duty requires putting clients' financial interests ahead of its own.
At Assembly Wealth, our advisory philosophy extends beyond managing client portfolios. While an advisor's statutory fiduciary duty formally applies to investment advisory services, we believe that comprehensive financial planning should help clients navigate real-world economic challenges and evaluate major consumer decisions where appropriate.
An online search for “car dealership scams targeting seniors” brings up numerous, heartbreaking stories. Sky-high interest rates, substandard trade-in values, and psychological manipulation are just a few of the ways dishonest sales practices can target older adults.
Recently, an Assembly Wealth client (we’ll call her “Mary”), an 80-year-old widow, was in the market for a new car. A friend recommended a local Southern California car dealership where Mary fell in love with a brand new 2027 Nissan Z.
An excited Mary signed a lease agreement, forked over a $5,500 deposit, and drove home in her new car.
Her financial advisor inquired about the details of the lease agreement and learned:
Mary’s total outlay during the 39-month lease would be $53,572.57 (39 monthly payments of $1,232.63 plus the down payment of $5,500). As a reminder, the sticker price for the car was $58,500. Over 39 months, Mary would pay the dealership 91% of the car’s full sticker price but not actually own the car.
If Mary chose to buy the car at the end of the lease, she would end up paying 92,072.57 (53,572.57 in lease payments, plus $35,400 to purchase the car and $3,100 in fees). In total, Mary would end up paying over $33,500 above sticker price for her new car under that lease-to-buy scenario.
Mary’s Assembly Wealth advisor quickly realized that Mary had been talked into an unfavorable, cost-inflated contract. With Mary's authorization, he contacted the dealership to review the contract calculations and advocate for a fair resolution.
The dealership refused to change the terms of the deal. The dealership insisted the best they could do was to have Mary agree to buy out the lease for $65,400 plus tax. Mary would still be paying over $70,000 (her $5,500 deposit + $65,400) for a car worth $58,500.
The advisor didn’t accept that response and requested that the dealership cancel its predatory lease and convert the transaction to a clean cash purchase at the $58,500 sticker price.
The dealership had one final offer: they said Mary could leave a signed, blank check at the dealership over the weekend. The following week, the dealership would figure out a fair compromise price. After determining the price, the dealership would then fill in the details of the signed check on Mary’s behalf.
Recognizing the severe financial risk of signing an incomplete contract—which runs contrary to California consumer protection statutes prohibiting incomplete financial sales contracts—Mary's advisor instructed her not to sign and advised her against further unassisted discussions with the dealer.
The advisor confronted the dealership and noted that presenting an inflated lease to an 80-year-old widow, combined with a request for a blank check, violated standard fair-dealing practices and could warrant scrutiny under California consumer protection and elder financial abuse statutes.
The advisor reiterated that the dealership cancel the lease agreement and convert the transaction to a purchase at the $58,500 sticker price. He clarified that if a fair agreement was not reached, Mary was prepared to lodge formal consumer complaints with both the California DMV Investigations Division and the California Attorney General’s Consumer Protection Division.
The dealership realized it was no longer just up against an 80-year-old widow; it was up against an 80-year-old widow and her Assembly Wealth advisor, who understood the full measure of advocating for her broader financial well-being.
The dealership relented and agreed to:
Mary’s advisor ultimately saved her an estimated $33,500 compared to the full lease-and-buyout structure, secured ownership of the car, and, perhaps most importantly, gave her peace of mind knowing she had an advisor who looked out for her total financial picture.
Many advisory relationships concentrate solely on investment management without examining everyday retail decisions. At Assembly Wealth, we strive to be trusted stewards of our clients' wider financial lives, offering guidance on complex financial decisions to protect their hard-earned assets.
In this instance, our firm stepped in to help protect Mary’s wealth, her rights, and her dignity. This is the standard of care and personal attention that we aim to bring to every client that we are honored to serve.
To learn more about what we do or to start your Wealth of Life plan, please give us a call at (415) 541-7774 or contact us online.
Compliance Disclaimer:
Assembly Wealth (“Assembly”) is an SEC-registered investment adviser; however, registration does not imply any level of skill or training and no inference of such should be made. The opinions expressed herein are as of the date of publication and are provided for informational purposes only. Content will not be updated after publication and should not be considered current after the publication date. We provide historical content for transparency purposes only. All opinions are subject to change without notice and due to changes in the market or economic conditions may not necessarily come to pass. Mention of a security should not be considered a recommendation or solicitation to purchase or sell the security, and any securities mentioned may be held by Assembly for client portfolios.
The case study above is provided for illustrative purposes only to demonstrate the firm’s holistic approach to financial planning. Client names and certain identifying details have been modified to protect client privacy under SEC Regulation S-P, and the client provided prior consent to share this factual scenario. This example illustrates the experience of one specific client; individual circumstances, automotive contracts, dealer concessions, and potential cost savings will vary. There is no guarantee that other clients will experience similar outcomes. Assisting clients with consumer negotiations or non-investment vendor contracts falls outside the standard scope of investment advisory services governed by the Investment Advisers Act of 1940 and is provided as a non-advisory accommodation.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal, tax, or accounting advice. Assembly does not offer legal counsel or formal legal representation. You should consult your own attorney, tax, and accounting advisors before engaging in any transaction.
Information presented represents an opinion as of the date published and should not be considered an investment recommendation. Assembly does not become a fiduciary to any listener, reader, or other person or entity solely by the person’s use of or access to this material. The reader assumes the responsibility of evaluating the merits and risks associated with the use of any information or other content and for any decisions based on such content.