I have about $5,000 in negative equity in my 2013 BMW X5. Would you recommend financing or leasing as the better way to go to get rid of it? I’m in Houston, TX and would like to keep a new payment around $400-$450 if that’s even possible.
I hate to break it to you, but you will just be rolling that negative equity into a new car. You will also be paying interest and tax on it.
Any reason you want to get rid of the X5?
I highly doubt it. Feel free to take a look at Texas broker deals in the Marketplace for a reality check.
Please use the search function for “Negative Equity” and read through the last 30 times this subject has come up as the answers really do not change.
Even on a 36 month lease $5,000 / 36 = $139 so if your trying to stay at $450 then you would need something that would lease for $311 / month.
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What’s the payoff and who offered the valuation $5,000 below it?
OP would also need some form of lender tax credits for any deal to even make sense, IMO.
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Good catch.
@Vh1104 - What type of car are you looking for? Gas or EV? Spoiler alert - EVs would most likely have lender tax credits.
Maintenance issues and costs are more than the car is worth. I looked at a Lyric yesterday and they offered me $2,500 for it and said my lease payment for 10K/24mos would be around $800 with no money down.
Thanks I will do that. New here so still trying to learn how to move around the site.
Check out the Hyundai Ioniq 5. The manufacturer is offering lots of incentives, so you might be able to meet your target payment, even with the negative equity rolled in (Don’t quote me on this, though).
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The payoff is $8975 and a dealership yesterday offered $2599 which is more like $6000 in the hole. I have put the most accurate info I could in on TrueCar and Carvana and they offered $4K & $5K but of course with TrueCar you go to a dealership so they can evaluate the car and I doubt the offer will be what they is offered online considering what was offered to me yesterday at the dealership I went to.
Thanks. I actually contacted them today because I did hear about the incentives with the Ioniq so we’ll see what happens. I was just wondering if maybe I should go for financing a used Jeep Grand Cherokee with around 60K miles and rolling the negative equity into that since Jeeps are pretty reliable used cars.
I wanted to ask on here because there seems to be a lot of knowledgable people on here.
Thanks for your input.
Some will disagree.
Please do not do this.
Stop contacting dealers until you have an idea of what your monthly payment would look like on an Ioniq 5, without the negative equity. As I stated earlier, leverage broker deals in the Marketplace.
Btw, how is your credit score?
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How many miles on it and condition?
I bet you could easily do better private party thru CL, FB and forums.
Unless OP plans to pay the difference in cash to cover the negative equity, wouldn’t still be a lien on the car? How would OP be able to get the title then and transfer it to the new owner?
Ok I will check marketplace. My credit score is around 730.
100,900 miles. A few mechanical issues like power steering pump leaking, oil leak, electrical issue with the hatchback not opening.
@JonnyD1 - You are referring to something else. Let me restate what I mean.
@JonnyD1 - Let’s assume OP can get a buyer for $5k, they will still need to cover the remaining amount before the bank will release the title.
I don’t think anyone would recommend that they finance a Ford EV.
See my response about potentially rolling that negative equity into a lease, on a car that has a lot of incentives like the Ioniq 5.
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Sorry, I read over this part of your response.
Can you cover, say $2000 in negative equity via cash if you sold PP?