But it’s still going to be more expensive overall to transact, since at the end of the lease you’ll have to find another lease, but if you stick with the loan you’ll have the car at the end, and even if its worth very little, you’ll still have a car to drive around.
We all love a good hack (that’s why we’re here), but not sure a hack solves your problems here…
If you absolutely have to transact, wiping out the $4k of negative equity on the MDX will be easier than the GC L, and by focusing on 1 transaction, it won’t be as confusing to manage.
What’s the interest rate on your GCL? The only real potential advantage here is if you’re getting into a lease with a very low money factor and you’re offsetting a very high interest rate loan.
I’ll do an illustrative exercise if for no other reason than to at least show you how I view it:
For the remainder of your 55 months, you owe $56k. Bit $20k of that you’re going to take a loss on either way. So really, you have a $655 payment with an additional $364 going to the negative equity.
If instead you choose to lease a Lexus RZe AWD, you’ll have an effective payment (or perhaps no down payment, roll in all fees and charges) around $500. You’ll pay an extra $556/mo to cover the negative equity. So your payment might not even go down by much if at all.
After 36-months, you’ll owe nothing but you’ll own nothing either. If you keep the JGCL, you’ll owe $19.3k, and you’ll be on a glide path to own the vehicle in another 1.5 years or so.
Another perspective I see is that rolling $20k of negative in an RZ means that you can actually get it funded LTV wise. As Matt said, low money factor/rent charge to offset a high-interest loan, and actually getting it funded are benefits from a devil’s advocate situation.
Hypothetically if you roll $20k of negative + 5% sales tax into a loan there is a good chance you’re going to get close to an LTV ceiling.
Have you tried getting quotes from Carvana, Carmax, or elsewhere? They maybe higher than what the dealer quoted.
Regardless, $20K is huge and trying to roll that into a lease or new loan will be tough. Plus you have taxes and interest on that which makes it even worse.
A lot of EV deals work because of both rebates/discounts & short term, low mileage lease structures that keep the RV hit to a minimum. If you need 15k a year you’re already handicapping yourself
