Ex-loaner BMW wouldn’t work for him since mileage is $.25 per mile, pushing his overage to almost $210 a month. I’m also assuming the original poster would want something larger since they went with the Pilot (seven seater?) so anything remotely close to that size (X5 with the optional 3rd row?) would be impossible to get at $300 a month even with minimal due at signing (first month + taxes + fees).
Unfortunately for this guy, he’s going to have to either give up something to hit the payments he wants. He’s gonna be scraping the bottom of the barrel in terms of options for anything with three rows, or he’ll have to give up the space/size to get a reasonably nice car.
To the OP, you’re in a pickle and unless you really hate the Pilot the most financially prudent move would to keep the vehicle until you’ve completely paid it off. It’s not the most glamorous or flashy, but it’s the best way to get from under the negative equity of your previous vehicle and the Pilot.
Well, since the Idea was to transfer it to someone else and let them pay off the negative equity, the excess mileage and vehicle size won’t really matter since it’ll be just temporary, right?
And for family haulers we all know the best deals will be on the QX60, but those don’t transfer well, so get a BMW to roll the negative equity on and a QX60 to drive around and transfer the BMW to someone else? idk just getting creative here, but i do agree that there will have to be a compromise.
sorry, i didn’t mean to respond to your post initially.
Sure, you can make a graph based on the amortization curve vs. predicted resale value.
You drive 22-25k miles per year. There’s just no way to make leasing a semi-luxury vehicle work within your price parameters, unless you want to continuously roll successively higher debt into new leases until you can’t roll any more in. You would be paying far more to buy miles than what those miles actually cost. So my advice would be to stop the cycle, unless for some reason you absolutely need to drive a new $40k SUV.
The only way you’re going to “save thousands” is by buying a commuter car that is rock solid reliable and dirt cheap to repair/maintain for the bulk of your miles. You mention a “beater” and a “tiny car”. Is the absolutely minimum level of vehicle that you can accept a $40k Pilot?? Is there any reason that you can’t deal with a used Accord Touring or Camry XLE etc etc etc? Or even a used Pilot or RDX or RX etc etc etc. I’d recommend used sedan right now, since used SUV’s have really high values currently. If you get a good enough deal on a $15-20k car, it’s also entirely possible that you could roll the entire Pilot negative equity into it depending on your purchase price vs. bank valuation and still come out with a payment half of what you have now. Some dealer could be willing to play close to retail value on the Pilot as they are fast sellers to make a deal for a used car. Play the long game. Good news is, at least you’re not stuck with a $658/mo lease that you can’t get out of!
I don’t “have” to have a 40k suv, but it’s what I want. (I’ve always had cars until this and have no desire to go back- drove one for 10yrs w no payments, when frugality was priority).
My situation isn’t that I “need” lower payments. I’m just looking to save as much as I can, while still having what I want.
If I had no neg equity to consider- prepurchasing mileage as mentioned above still seems like a good option to me - keeps me driving what I want - keeps me in a newer car under warranty. Unless I’m not seeing that the same
Well I want a Porsche, but if I got one I’d be posting about how broke I am on the internet…sorry man no offense but you are the only one who can resolve your situation to your satisfaction. I just don’t see a leasing scheme saving any money given how many miles you drive annually.
$15k neg equity is $416/mo for a 36mo term by itself, not counting interest or tax. Doubtful you’ll have much luck burying that much into a new lease, unless it’s a really high-end car.
So I have a 2018 F150 SC 4x4 base XLT with 27000 miles and owe 39k. It was a bad deal to begin with as I’ve received offers from $22k-$24k. Now I’m in a situation where I need more room in a vehicle and I’m just unhappy. If that means living with the mistake for a bit longer than I’ll bite that bullet. If there’s a way out I may take it if it makes sense. If anything makes sense.
Keep driving it, rolling $15000 into another vehicle doesn’t make much sense. If you can afford it, double up on the payments to reduce the negative. What’s your payment now? What’s the interest rate on this one?
Unless it’s the car seat dilemma, why does a super crew not have enough room?
You probably have a better chance on getting hit by lightning than burying 15k into a new lease, especially in today’s market, with banks tightening up. I seriously doubt anything out there has even close to that in rebates you could use to help offset it on a buy, let alone a lease.
Yeah that makes allot more sense, I was wondering why it wasn’t worth much. The super cab vs crew kills the resale. I’d revisit in year. You could probably do something with a Tundra in the right region with the TSS model
It’s the right move. I’d also suggest, mapping out a simple curve to see when your remaining debt on the vehicle might hit the value. The amount owed is pretty straightforward and you can make some educated guesses on the value in 1, 2, 3 years, etc. That’ll give you a good target of when to get out of it with minimal financial bruising. The good news is that you’re at 1.9% so you not under the gun of crazy high interest rate.
