How much longer do you have left to pay off the loans on the 2011 4Runner and the 2012 Camry?
About 3 more years on the 4runner, and about 4 more years on the Camry.
What are the APRs on those loans?
Refi should be considered for sure. APRs can be lowered sometimes but the negative equity will never just disappear. Beware of any salesman of who says so.
2 Likes
I’d be perfectly happy with an EV if it could accommodate at least most of our space requirement. I know that some sacrifice will be necessary - if anything is even possible. I’d actually prefer an EV, but figured those were more volatile at the moment…
I’d like to think it could even be an option to offload the 4runner at least and just continue paying the Camry. Ideally though a new lease monthly payment wouldn’t be higher than the $452 we’re paying on the 4runner, but I don’t see how unless maybe in a tiny eco car.
APR on Camry is 4.29 and 4runner is 6.99…
Or take a road trip to Outer Banks, NC. There still have a chance.
3 Likes
Visit this thread:
And try to refinance those loans. Not sure how much lower they’ll go as i’m unfamiliar with your particular situation of cars but it doesn’t hurt to try
4 Likes
Is there a TL; DR version? All I saw was the $13k negative equity.
Found it
Please do not do this. As some have suggested, look into refinancing the loans. Given the market and interest rates, I would not recommend leasing a new car or buying a used one at the moment.
2 Likes
Will look into refinancing. Just concerned about extending the loans even more considering the age and mileage of the vehicles.
Is the Chevy Bolt EUV not worth rolling the negative equity into, whether financed or leased though? Isn’t there a $5900 rebate for those through the next couple of days?
Only on the 2022s to make the after incentive price match the 2023 msrp.
Gotcha, thanks. With that being said, what about a 23 Bolt? Would that not be a vehicle with some upside for rolling neg equity into? Whether finance or lease? I’d finance if seemed worthy as a car to roll into…
In the past when you were able to combine upwards of 10k in rebates with a low interest rate this might not be the worst solution in the world if you HAD to get out of a car. The rebates aren’t as good right now and interest rates are much higher. The leases on these stink to begin with at the moment, they would be ungodly with negative equity added.
1 Like
When looking into refinancing, your main objective is to lower the APR (interest rate).
Refi for not more than 3 years.
Refi for 3 years (if you can afford to).
2 Likes
The MF is 0.00384, so leasing that would seem to be a really bad idea. I don’t see any lease rebates for the 2023 on Edmunds
1 Like
Ride it out especially if the 4runner fits your lifestyle so well with the drumming. The 4runner shouldn’t depreciate that much and is reliable, odds are most in your favor this way imo
3 Likes
Thanks everyone. I appreciate all the feedback!
I get it that you want to “get rid” of the be negative equity, but there is no magic wand that is going to make it disappear. Keep paying down the loans on the two cars.
1 Like
Yeah, I think the OP should just ride it out, too (after checking out re-financing). Each car should be very reliable, relatively cheap to maintain, and they are both useful cars, too, for what the OP needs. The negative equity stinks, but the situation could be worse.
Trying to purchase or lease something else currently is literally just repeating the same mistake, IMHO.
3 Likes
Like @Bluemkn57cars stated, no need to extend the term, keep the time the same on the loan, you would just be lowering the rate meaning more of the payment is allocated to principal instead of interest.
Honestly it looks like your really justifying a way to get a new car in your head while essentially carrying on with the negative equity strategy. It’s pretty common for us to see someone who only “wants to do it one more time” and then be done with it. Make your current situation the last one, not the next one.
Also mentioned in this thread was that a few people over the years were able to successfully pull this off. It had elements that no longer exist. Lower interest rates, higher incentives, dealers willing to discount more than in current times. Absent those it’s almost impossible to see how your going to be in a better financial situation but you would have a new car if that’s the justification.
I see more old 4runners and Camry’s on the road than most other makes / models and I personally moved across the country towing a Uhaul trailer in a 2002 Tundra with approx 225,000 miles on it and didn’t think twice about doing so. Keep the oil changed and preventative maint up to date and those Toyotas will last a long time.
9 Likes
I don’t think that is a good idea based on their current rates compared rates available now for 10 year old cars, especially with the recent rate hike. I think all that happens is they get the same or worse rates and now have a ding on their credit.
You are going to have an easier time burying the negative equity from the 4Runner. Most banks will only loan a certain percentage of the car’s MSRP, so you will need to look at a very expensive car to do anything with the Camry or find a car with a huge discount and/or rebate. But keep in mind that if you are rolling over $14k of negative equity, that is $388/mo before you consider interest on that. Honestly, I would suggest trading in the 4Runner if you state has a tax credit and finding something really cheap to drive for 2-3 years while you pay down the Camry as fast as you can.
2 Likes