I have quite a bit of negative equity due to a trade in mistake I made. I am super interested in an EV vehicle and considering leasing so that at end of lease I am free from any negative equity. I know these numbers are literally crazy. That’s what I get for my mistake. I am willing to “pay the price” for a few years.
I am looking at a 2023 Q4 E-Tron premium plus… is there any items I am missing here that I could negotiate?
Market value selling price: $64,510
Discount: $1500
Tax credit: $7500
Customer credit: $1000
Costco: $1500
Adjusted price: $53,010
Trade allowance: $31,000
Trade difference: $21,510
Tax: $972.52
Acq fee: $925
Doc: $250
License: $88
Net price: $23,745.52
Trade payoff: $43,000
Balance: $66,745.52
42 months 12,000 miles with $5,000 down $985-$1005 MF 0.00215 and residual $32,901
They aren’t budging and I really want to be at that $800-$900/ month mark and don’t want to put $7,500 or $10k down… are my hands tied here with this deal?
Are you? Then you’d pay off the $12,000 negative equity in cash, not roll it in at a high MF.
Unless you have an exemption in state law, that negative becomes taxable too once it’s rolled in.
You can set up a LH calculator and you’ll see how much your total lease cost changes before/after the negative equity. It adds way more than $12,000 to your total lease cost.
Why do you want to do this? You really should just keep your current car unless something is majorly wrong with it. You are going to pay $47,000 + to drive a $53010 vehicle (after lease credit)- then give it back with nothing to show for it.
Ev’s have not been holding value well. If you need to get out for whatever reason mid term the amount of negitave equity will be significantly more than you have now. Making a bad financial decision to get out of a bad financial decision will never make sense.
Seriously what’s the mystery car and detail on the deal?
When folks come here to ask advice on a negative equity roll, they often leave out detail, perhaps because they’re a bit embarrassed? But it’s actually rather helpful to have more detail in order to properly assess what advice to give.
Part of it is these were selling with markup and no tax credit as recently as late 2022 and pretty soon after they’re selling with deep discounts and full tax credit (via lease).
While it was fairly predictable that adm + no tax credit was a bad idea last year, apparently plenty of people thought it was sensible.
I was eager to roll into a Q4 in early 2022 when my $400 etron lease was ending in July. But its launch kept being delayed due to pandemic parts shortages, while they kept increasing prices during this time. So I changed my mind and got into an X5 45e and never looked back.
You never knew about possibility of huge incentives and discounts ESPECIALLY if you conveniently missed the discount time periods, e.g late 2022. More experienced folks are just waiting.
Because of ^, you look purely at MSRP. Then you think to yourself, payments for a 60k EV should be significantly cheaper than a 80k EV. So when presented with bad MF and no discounts, you think to yourself, it is what it is.
Combine all these factors and you got a terrible lease in hindsight, whereas everyone else more experienced is just patiently waiting to “time the market”, if you will.
Don’t do this deal OP @Bkaye321 !!
Rolling negative equity over and over at 5% interest (ie 10k has to be repaid with 2-3k interest) is not a good idea. Stick with current car (if possible). The Q4 is also another vehicle that has negative equity the moment you drive it off the lot, further compounding negative equity down the road.
