Disclaimer I know that negative equity in a lease is almost never the best choice, but it’s what I want to do.
I have a 2017 Passat that I’m about 10k upside down on, and I’d like to break my cycle of negative equity by rolling it into a 36-month lease, and then starting from scratch.
What kind of car would be best suited for that purpose? I know it has to be $35,000+, which is ok. Are there any manufacturers that I should lean towards? 730 credit score, if that matters.
VW always seems to have the steepest discounts off MSRP which would give you some head room to roll in the negative.
So instead of paying off the $10k you owe you rather pay $10k plus interest plus lease payments of a much more expensive car?
Yes. I have my reasons.
Let me guess. You don’t like the Passat and want a new car?
Yes, but more importantly, my Grandmother was originally a co-signer. She isn’t in great health, and I’d like to get this loan out of her name sooner rather than later.
A great leasehacked car with a low MF as close to zero as possible.
Now may be a great time to get these awesome BMW 3 series deals considering you’re trying to bury 300 dollars a month in negative equity. More if you go for a 24 month lease.
The good news is, if you can afford that, then in two years you’ll be absolved of the debt altogether.
I would typically agree, but the negative equity will be 2x the lease cost so probably not a good idea at 4.5% interest. Find a car with high rebates and low MF. Pay off as much as you can since you are also paying sales tax on the rollover amount. It’s going to be expensive ($600/month) but don’t fall for the trap of a longer lease term to reduce the payment.
$10k in negative equity is going to roll about $300/mo into whatever car you lease. You can also look forward to paying interest again on dollars you’re already paying interest on.
Regardless of your reasons, it’s very nonsensical to roll in an enormous amount of negative equity into a new lease instead of paying it off and starting fresh.
You should just finance an electric vehicle at 0% and use the fed rebate to offset most of that negative equity.
Electric cars are expensive, even with the rebate. The Kona EV is 37k starting and good luck finding a dealer that didn’t mark it up.
OP is best off leasing 24 months with as low as MF as possible to get rid of the debt as soon as possible. The longer the lease term, the more interest they’ll pay on the negative equity.
OP should be focusing on getting it paid off as soon as possible with as low an interest burden as possible.
BTW, get a 24 month lease as mentioned and try to get a brand that does pull aheads to get out ASAP.
I can afford the monthly payments, but I have no experience negotiating a lease. I didn’t know BMW was doing anything special re: 3 Series vehicles…do I just walk in to a dealership, tell them what I’m looking for? (24 month lease, lowest MF possible)?
No not at all. I’d recommend searching the forum for negotiation tactics and take your time. Most Leasehackrs only go into the dealer to sign the lease. Negotiation is done by email or phone calls. You’ll likely have to go to Atlanta or Virginia for a lease. North Carolina isn’t a competitive market at all
You gotta do a lot of research before contacting a dealer.
Figure out what deals ar won’t there by looking at the forums and get an idea of what’s possible. If you can do MSDs, then do MSDs. The only
Money you should be putting down is for MSDs.
You should be seeing what kind of discount you can get. Loaner 2018 328d can be discounted we’ll above 15% and April may be the last month of support for these cars.
Check out the market place or hire a broker from here.
You may want to work with a broker who can help you out… can broaden your search across multiple models and cities… I just wouldn’t be picky based on what you are trying to do.
Forgive me for asking and I’d never try to be crass or insensitive. Why does this matter?
She needs to finance some medical related procedures…trying to lower the amount of debt in her name.
Understood. Good luck and never get in this spot again!
Best wishes for a recovery, too. Take care.
Do yourself a favor and start studying. Hack a fantastic lease (ie a 3 series diesel) that you can roll your negative equity into, and then transfer out of it on lease trader.