I (foolishly) financed a 2010 Range Rover HSE a little over year ago with Capital One at a 10% rate. I have about $10,250 remaining on the loan. 131,000 miles. Vehicle is currently running perfectly (hence, perfect time to get rid of it). I’m trying to get into a lease that’s under $600/mo with enough trade in value to pay off, or at least nearly pay off, the remainder of the Capital One loan. Any suggestions? I’m open to leasing largely anything.
Did you get offers from different buyers for your RR? That should be the first step. Is your credit better now compared to when you signed a 10% apr loan?
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The goods news is that while you are at an astronomical rate, there isn’t all that much money involved. The bleeding isn’t too ugly (per month).
I’ll echo that your first move needs to be to get offers on your RR. And do you have it listed privately? Many dealers won’t be terribly interested in an older vehicle with mileage. Determine what your credit situation is, if you haven’t already. If you’re not at least in a fair position then I would not recommend leasing.
Are you saying you want a lease to bury the negative equity in?
Essentially yes. I know it sounds like a terrible idea, but my situation is unusual. I’m a doctor, but currently in residency, so very low income for a couple more years and a lot of debt. Very little cash on hand available to spend paying the difference at the low dealer buyout rates I’ve gotten so far ($7,000 is the best I got, which was from Give Me The VIN…I’d still be on the hook for $3,250). I also work crazy hours, need a reliable vehicle, and have very little time to work on selling the vehicle private party (it is currently listed on Facebook marketplace and I plan to put it outside with a for sale sign on it once I give it a good cleaning).
My credit score was in the mid 700’s when I initially financed it. It still is. My rate was very high because of the age and mileage of the vehicle.
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That was the universe telling you to not get an 11yo RR at the time (apologies I’m a bit sarcastic).
I concur, and think your best thing at this time would be to bite the bullet, and find a reliable vehicle that will last you the timeframe between your current time in residency, and paying off your med school debt. Leasing would mean you pay the current high-interest rates on a vehicle and compound your mistakes.
If you have the cash on hand I’d get rid of the RR and be done with it, then finance whatever you can at the best rate you can find (probably high 2s, mid 3s on a 60m term) on a Toyota/Honda/Hyundai you can get cheap. There is no reason whatsoever to roll negative equity, and then pay an astronomic interest rate on it if you can avoid it.
You could, assuming you qualify for top-tier credit at a CU like tower, could finance a prius prime XLE from @Jrouleau426 for 60 months with tax and your negative equity at signing for less than your current car. You’d save on fuel, etc. I know as any resident, you have limited time - possibly biting the bullet with a gmtv offer means you’re over and done with it.
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I think you mean start making real money. I have two friends that are doctors, neither are particularly financially savvy but smart people nonetheless. Both still have med school debt and won’t pay it off for a couple years. We’re all in our mid 40s.
Good luck OP.
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Yeah more than fair, my dad’s students always talk about paying off their loans first - but if the interest rate is reasonable you’re definitely right.
I’d sell this as soon as possible. You’re one repair away from the car being basically worth scrap metal, odds of that happening on this particular model are very very high.
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Post pics of the Rover!
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How many offers have you got aside from GMTV? You can easily get 10+ offers just online.
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How much cash do you have towards paying off the negative equity?
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A “for sale” sign is no strategy at all. All you’ll get are lowballers.
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regardless of your situation, it’s a terrible idea.
All the more reason to get a cheap, reliable Honda/Toyota that will last you a few years once you get rid of the RR. Set yourself up for a strong financial future, and not a revolving door of debt payments. Just have it inspected first by a trusted mechanic. Save the RRs for when you’re on better financial footing years down the road, where you can absorb the hit of an expensive repair better if needed.
Dad speech done.
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10% on a 15 year old car is pretty solid tbh. I think you’re pretty stuck unless you want to roll some negative equity in (which we could help with, if you’re open to that).
$7k seems like a very very generous offer. YMMV
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Assuming that your friends went to school around the same time I did (I’m mid-40s), we were able to secure insanely low interest rates at the time that basically didn’t give folks much of a reason to pay it off early.
Public health systems (at least in LA), at least for the last several yrs, offer amazing loan repayment plans that were not in existence “back in the day.” Paying off the loan quickly is much more of a reality for the younger generations that it was for older ones.
To the OP, I agree w/ taking the $3K hit, if you can afford it. No one wants a Range Rover w/ > 100K miles.
The fancy cars will always be there. Get rid of this one while it still runs.
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I hate to ask such a personal question but do you have cash on hand you can use to cover the negative equity? Last thing you want to do in this rate environment is to roll NE. Then again your current rate isn’t so good either.
I would recommend covering the negative equity and getting an affordable lease perhaps on a Nissan Altima or Pathfinder for 18-mo.
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Respectfully disagree. Assuming 3k in negative will add close to 200/mo on the payment after tax/interest, meaning he’s going to likely be over 600/mo. Sure, that would mean he’s out of this in 18 months, however with someone with “low income” and “a lot of debt,” this doesn’t seem like the most prudent move for someone just starting out, already saddled with debt, living conditions, etc…
That being said, I have no clue what “low income” actually means either.
It is personal, but also essential to the topic. I think we all agree its best to get out ASAP.
A lease might not make the most sense right now. Look for something with a low TCO. I think that is the key here.
I believe @TypeSH was recommending that OP cover the negative equity with any cash they might have on hand, instead of rolling that into a new lease. I will let them speak for themselves and clarify their comment.
As for getting into a short term lease, I’m not sure if that is the right approach. I think OP should focus on getting into a cheap lease instead of financing a used Toyota or Honda.
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yes, I missed that, or glossed over it
I know your situation very well, my wife is also a residency (no income very high debt). You shouldn’t try to bury your insane negative equity. You also shouldn’t try to get a lease, get a car that will get you to the hospital and back as cheaply as possible given you really have time to do nothing else (think honda civic, corolla type). You have your attending days to drive nice cars. Ideally, you need cash to eat the negative equity and walk away from this and not let it get any worse.