Ok where do I start…currently I’m leasing a 2015 Infiniti Q40 I have 17 payments left on a 39 month lease but my payment is extremely high from rolling negative equity into it. I’m paying $698 a month which is too high for me I can no longer make my payments and it’s adversely effecting my credit. I have 19,990 miles and my payoff is $34,277.87 so I’m about $12,000 negative at the moment. My credit has taken a hit due to the late payments does anyone know any options I may have to get out this car and into another with my negative equity, also any dealerships that may help. I’m located in Queens NY but willing to travel if a deal can be done.
I’d suggest to sell your Q40 and buy a cheap used car, but that can only be done if you have enough cash to pay off the negative equality. If not, you’re pretty much stuck.
Dealerships don’t care about you or your situation. They will only “help” if they turn a profit.
Damn I was hoping with some incentives the dealership may be offering mixed with some cash down that it might help.
Agree with the above advice.
You’re in a tight spot here and to some extent it’s a vicious cycle. The more late payments you have the less likely you are to be approved again for another loan or lease.
To make matters worse, you have a ton of negative equity. You owe nearly $12k in payments and trade value on your car is likely around $19k-$20k, which means you’re $14k upside down. Unfortunately Infiniti leased a ton of 2015 Q40s with crazy incentives to move them, so they have depreciated very quickly. A friend just bought a 2015 with 7500 miles as a CPO car for 23,5.
As a last resort you can work with Infiniti financial to arrange a voluntary repossession. This will absolutely torch your credit (though not as badly as a regular repo and with a lot of late payments your credit may already be torched) but will free up your monthly cash flow. Your only option at that point will likely be to buy something cheap for cash until you can rebuild your credit.
The challenge you will be up against is how far upside down you are. If your payoff is $34k and the car is only worth $20k, someone needs to come up with that difference.
Even if you could find one of the crazy GM leases (Cruze or Equinox), there is a limit to how much negative equity the bank would let you roll into it. My guess is you’d need to bring about $5000-$7500 to the table. Someone who is more educated on the topic than me could tell you what GMs limits are for negative equity.
How much do you have in cash to pay the $12k negative equity off?
Even if you borrow $12k somewhere and get your car payment from $698/mo to say $198/mo (for some the 24/10k leases floating around here), that is $500/mo and you can pay that $12k off in 2 years with some discipline. I know you said you can’t afford $698/mo but paying down debt is different than a car payment. In 2 years, you can start fresh and get back to another Q40 for $350/mo (if rates stay the same)
From my research you’re absolutely correct as well I’m only going to consider the voluntary repossession as my absolute last resort, even though I’ve been contemplating it. When I got the lease I was in a better place financially.
I can come up with about $3,000
I should’ve went with the Q50 since the payments were high anyway it was about the same price
Just doing some quick research it looks like most banks want to see 120% LTV (loan to value) ratio or less. On a $20k car that means they might roll you $24k for a loan; but that is with perfect credit.
If you owe $14k that gets you to $10k. You’d need another $7k in discount and $3k in cash to get you the rest of the way.
I don’t see any easy way out here; maybe one of the big time hackrs here can make a recommendation.
When you say you can’t afford the $698/mo payment … do you mean you do NOT want to spend $698/mo on a car payment? But if push comes to shove, you can spend $698/mo if that will get this negative equity off your neck?
That’s not a bad option my only difficulty will be where to find the 12k to borrow. I have about 3k I can come up with.
No financially the $698 isn’t attainable at the moment, even though I am actively looking for a 2nd source of income that would allow me to pay it.
My tip, since younhave late payments that affect your credit. Just do voluntary repo and save your $3k to buy a used car for next few years.
When you say it is negatively impacting your credit, how bad are we talking? Is it a couple lates and otherwise good credit or are there issues?
My concern is that your credit may limit your ability to get something new at a reasonable rate and may limit your ability to get a loan for the balance you owe.
Yea I see it’s almost and impossible feat. I’m glad to receive the feedback I greatly appreciate it.
No other negatives on my credit besides the vehicle. It has forced me to have high utilization on my credit cards though to help offset the cash that’s going to the car by paying bills with credit.
I generally agree with what @chrisgo is saying here, but I’m not sure a $200/month car payment and $500/month loan is the answer.
Well, it seems like we have the worst case scenario which is voluntary repo and they hammer your credit. OP will have $3k but won’t be able to get a lease for the next couple of years (at least not without a co-signer)
So the next suggestions should all be “better” than worst case …
With a voluntary repossession I’d still be on the hoook for the negative?