I have a loaded 2011 Mercedes-Benz with a loan balance of almost $14k. It is currently sitting disabled at a Mercedes-Benz dealership requiring more than $20k worth of repairs. The car was nearly $80k, and I refinanced it a couple of years ago.
I was planning to trade it in and roll over negative equity this week, but then the dealership announced that they would only give me $3k for it. I was counting on getting at least $6-7k for it. This amount is what CarMax and another dealer offered me before the strut gave out just a month ago. It had numerous mechanical issues before it was towed to the dealer a couple of weeks ago after one air strut failed. Before this, I had been planning to drive it until it blew up* because I have an extended warranty that only covers the mechanical issues unless there a failure of an internally lubricated part—a catastrophic warranty. This warranty was acquired after the two manufacturer warranties expired. Exclusionary policies were not available to me at that point.
I am a loss for what to do at this point. I’m leaning towards taking it to CarMax, shopping that offer around, and then coming up with much of the difference. I have two excellent $0 down base MF lease proposals on the table, but they were calculated on only rolling in $7k of negative. They are on a Jaguar F-Pace S and an Audi Q8 Premium Plus. Any better ideas?
*I was actually looking to trade it last year, but my meddling parent (who is unfortunately listed on the existing loan) insisted that I keep it and get it “fixed” even though it had been established and reiterated multiple times that repairs were not a smart decision.