Great info - thanks for all the responses
The negative equity alone in a 36 month lease is over $1100/mo. I don’t see any way to get out of this.
3 Likes
And I have to lease an expensive vehicle to roll it into right? Can’t rock a model Y for 3 years for 300 and be all in at 1400. So any crazy deals out there that would work?
Make extra payments? How much do you need to pay total monthly to be done with it in 3 years?
LH needs a blog post about this to help folks who got jobbed by the EV hype train in 2021-23… @z0lt3c
Lenders are capped on how much negative equity can roll into a car. A $40k Tesla with $40k of negative equity would be $80k financed, which is 200% of the value of the car. This “loan to value” ratio or LTV can rarely go over 120%.
For you to roll $40k negative, you’d need a car with high MSRP and massive discounts + rebates … coupled with a low lease money factor.
Like @djrabbi ’s BMW i7 with big rebates and mammoth dealer contribution.
The resulting payment would be massive though. You’re going to be better off just sticking with your Ford unless there’s no way you can keep operating the truck.
1 Like
I’ve been told some lenders would do 140% but yes I still need a heavily rebated vehicle option
A dedicated EV area would be great! lol
I don’t have to get out of it, so it may be a stay and wait but seems like EVs have no bottom value wise
Would be like 3k plus I assume - and in 3 years the way EVs depreciate this truck may be worth 15k…
I think there is an EV section here on LH, but no literature helping people who are massively upside down.
FWIW, you’re “$40k below the bottom” right now. Riding out your truck’s financing technically just gets you back to zero.
1 Like
Yes, I appreciate you saying that. That’s why I’m trying to find a particularly strong hack deal to be at zero in 3 years rather than 6
For you to be $40K negative on this truck, with an MMR around $55K, means you bought this thing so far over MSRP that whatever payments you’ve made have barely got you back to MSRP. This hole was dug upfront.
As mentioned, don’t really know many lenders who will allow that much negative equity. You could maybe find a friendly Ford dealer and roll it over into a 24 Lightning XLT lease, which has a near zero MF, but the payments would still be around $1400 for 36mo.
The more creative way out is via a balloon loan. You could pile the $40K on top of the AFG used 23 EQS program and also wind up with payments around $1400 for 36mo. You are making larger payments to interest here, but the TCO nets out the same as the XLT. A credit union maybe more willing to take on the negative equity since they have the EQS so overvalued to begin with.
3 Likes
$40k is a lot of money. Did you previously roll any negative equity into the Lightning?
Not to mean, but you shouldn’t be looking at any vehicle.
2 Likes
EQS is good and creative, thank you.
I did roll negative into it, and paid MSRP plus the Ga TAVT 7% tax we have on all vehicle purchases.
I did roll some but not anywhere near that much, values have just cratered. With that said I can handle it financially, just looking for creative market solutions to get done with it faster long term.
A fire sale i7 or two should do the trick. Keep one and flip one on SAL.
Bring ur footrests.
1 Like
How much?
I can’t recommend any financially creative solutions.
I’m new for all the acronyms but can’t imagine driving a 7 series would be bad (also assume that’s a joke with the footrest addendum)
Your payment is $1100 with 40k neggy? That’s not bad?
i7: several peeps on LHer have swung deals on an i7 that are so good that thousands in negative equity have been buried in the deal
SAL: some of those same i7 negative equity anchors have been turned around and transferred on Swap A Lease (SAL)
Footrests: well this one you’ll just have to figure out
4 Likes
That’s what the negative would be separately on lease he was saying… I’m at 1547 with all the negative currently
Very much appreciated, I don’t mind effort and that sounds very creative - thank you