I’ll ask the most important question here before certain people come in. Are you fixed on the X4 or open to exploring?
Definitely want the X4. I love the X6 but it’s out of budget for me.
What’s your budget?
How much negative equity do you have? Did you get quotes from at least 5 online buyers?
No, that’s why I was asking what online brokers do y’all recommend?
Approx $18k negative equity.
Jesus.
Check these website to see who can give you the highest offers. I would get an extended warranty and keep the Levante for another 2-3 years if I were you. What’s the APR on your loan?
1 Like
Okay, I will check for offers.
I believe I reached out to Scott at @IAC yesterday. Still waiting to hear back on a quote. He was recommended by a family member to me.
1 Like
Mother of God. Assuming that’s an accurate number you should just keep it for a while longer… $18,000 pays for a lot of repairs unless you really want to end up with a $1,600 X4 lease payment…
You didn’t say what your budget was so that makes it harder for anyone to recommend the best course of action.
I’m not sure the lender will approve rolling in so much negative equity. They have LTV limits for risk management.
From your POV, you also need to realize you are just re-borrowing this money if approved. You’ll pay interest on it and if your tax state taxes the monthly lease payment then you’ll pay tax on it too. So a lot of people don’t realize how terrible this is as an avenue for negative equity.
Well, a local BMW dealership told me that amount of negative equity is fine.
I do not want to keep it, because when I purchased it, I was in a different financial state and got a TERRIBLY high Interest rate. So, I will just go further and further into a hole plus expensive non-warranty Maserati repairs. Oil changes themselves are like $500.
I do realize payment will be high bc of the negative equity, but I already have a high payment. Might as well have the same or similar amount of money go towards a new reliable vehicle.
Trust me, I’ve owned five BMWs in the past and was a loyal BMW Customer, but when I got the Levante, when I say that car is so much more fun to drive is an understatement. So, I am sad to get rid of it but in my mind it makes more financial sense and creates a less stressful situation.
Do yourself a huge favor and learn how to use the calc here to put a lease payment together so you know what you are getting into.
1 Like
At this point, it’s basically a trade-off between finishing your existing Maserati loan payments and estimated repair costs over that horizon … versus the locked-in lease payments assuming you roll that negative equity into a new car.
I don’t quite understand how a 2017 car is still so far underwater to the extent you’d still owe like $42k on the loan principal, but it is what it is I guess.
The BMW iX EV is a great candidate to roll negative because BMWFS is propping up the residual on the vehicle itself (before any negative equity comes flying in as a capitalized cost). The discount off MSRP can be really healthy if sourced through a good broker, and the money factor is attractive on the lease. Stack in those juicy rebates from the taxpayers on EVs and the extra $2,500 coming from BMW, and you could very well end up with lower monthly payments even with the negative roll. You should also check to see if insurance is also cheaper.
Plus the iX is a great car if you can get past the looks, so it’s not like you’re ending up in a dump-wagon.
1 Like
Yes! I’ve been messing around with it and doing tons of research. Thanks for the pointers, guys!
1 Like
This may be a dumb question, but does it make a difference to pay off some principal for the car I’m underwater with vs. a higher down payment? I would assume paying off principal is smarter because less interest than if it was rolled over, but I could be wrong.
Not dumb question and the answer is yes.
TBH the best question you can ask is what car you can get after paying off all the negative in cash
X3 is quite a bit cheaper than X4