I need help - 3,500 in Negative equity - Am I crazy to lease?

Ask the Hackrs
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1

Hello Hackrs!

I am new to leasehackr and new to leasing/buying on my own.

I currently have a 2014 ford focus with 152k miles (I know, I used to drive for a living).

I am looking to buy/lease in December, as I have been told that is the best time to do so. (thoughts?)

At that time I will owe about 5,500 on it - based on the KBB fair trade in I can get about 1500-2000 for it.

I can pay at MOST 425/month but would ideally like to be as low as possible.

I would love to lease a

  1. Volvo XC40 (R-design),
  2. BMW X1,
  3. Audi Q3/5, or even a
  4. VW Tiguan (R-line).

Less than 2k to drive-off.

From reading a lot of the deals people have gotten on here, I’m still wondering am I crazy? lol

Should I just buy a used vehicle?

I need help!

2

Do you still drive for a living if not how many miles a month do you use or in a year I think this would be the first step to assessing if a lease is even possible

Then I would look at how much Carvana / Vroom are offering

I would suggest paying the negative equity upfront, if your willing to pay 2k upfront on a lease, rather than putting that money upfront on a lease,

You can most likeley get an X1 for under 450 p/mo most likely with first month on drive off most likely

3

I do not - I drive about 850-1000 miles a month on average.

Carvana offered me 500 dollars for my car - but I had a dealer offer me 1650.

I might have used the wrong lingo - when I said 2k I meant like total amount I would pay out of pocket (fees, tags, registration, first month, etc.)

4

So $3,500 in negative equity adds up to about $100/month on top your monthly payment on a 36-month lease.

You could possibly score a basic X1 loaner for $325/month, plus your $100/month in negative equity that you’ll be paying.

Tiguan SEL is probably doable. Not sure about R-Line. Mazda CX-5 and Honda CR-V are nice, too, and might fit within your budget.

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5

I think it might be time for a @joeblogs Snowy off ramp.

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6

This type of lingo always makes me nervous. This isn’t a financial advice forum - but if you can’t comfortably afford it, don’t do it.

With FL dealer fees and general dealer stubbornness this will be a challenge. I’d hire @mani_is_kool and grab a Civic or CRV, something with super low MF to absorb the negative and a chance at having positive equity during the lease, but that’s just me.

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7

Is it too late to take a ferry trip to the Bahamas?

…too soon.

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8

Thanks for the reply! I can comfortably afford that - I added that as more of a “is that kind of lease with my neg equity even possible?”

I will definitely take all of that into consideration.

9

Assuming you aren’t paying over MSRP on something that won’t support the LTV (eg a Supra) it can be rolled in. You’re paying RENT on the negative so choose something with a reasonable MF (no Acuras).

Your list needs some work: XC40 doesn’t lease well, Q5 is outside your budget. CONSIDER:

  • X1
  • 2019 Outback 3.6 (close with negative but MF is very low)
  • 2019 Escape

Don’t worry about December if it’s time now/soon. Never know next months incentives or when your car will suddenly need a repair.

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10

Unless you plan on crashing it soon(or finding a snowy off ramp), start throwing extra principal at the fucus

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11

Just gonna leave this negative equity solver here. Stay safe everyone!!

image
image1090Ă—692 45.2 KB
REMNANTS OF NADINE

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12

Tu es muy loco…

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13

It’s a pity OP did not take a labor day vacation in the Bahamas with his car

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14

LOL put these damn insurance companies to work

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15

Park it as close as you can to the beach

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16

I’m guessing this was one of those 72 month or longer deals at 0% or something like that? Say 350 a month or so? These companies, banks and dealers learned NOTHING from 2008-2009.

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17

As others have stated, your goal should be to find something discounted heavily with little money factor to absorb the impact of the negative equity.

Maybe a 24 month loan (if supported by a low MF) to get the higher RV. I recommend leasing for 12k miles a year to cover your mileage so you don’t have to deal with over mileage.

It’s possible to get out of this, just need to find the right deal. A BMW X1 May be the way out. Use the 2k you have for MSDs to further lower the interest burden or pay it towards the principal of your focus. Honestly, it’s probably best to pay the principal on it.

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