Lease Help Negative Equity

Ask the Hackrs Buy/Finance
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1

Hello,

I have a 2024 F-150 XLT with 23 remaining payments valued around $14,000. I dislike the truck and want to get out of it. I’d like to get into an Explorer tremor. I’ve been working with two local dealers on two models (the 2.3L with an MSRP of 51k and the 3.0L with an MSRP of 62k).

Pricing - $899 per month, 3k down, 15k miles for the 2.3L. The equity is approx $217 a month

$975 per month, 3k down and 15k miles for the 3.0L.

The dealers are rolling in 8500 of negative equity each and I’m assuming eating the rest of the payments in some way or another. Are these good deals? I expected lower payments on the 2.3L compared to the 11k higher MSRP of the 3.0L.

anybody know any brokers who can do better?

2

No

Also no

Ride it out to the end and come back in 23 months

5 Likes
3

The only thing dealers are going to eat in a scenario like this, is their cake.

If you can’t afford to write a check for the negative equity - you can’t afford to get into a different vehicle.

Grit your teeth, keep the truck, and save the additional money you are looking to light on fire.

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4

Pretty sure Ford allows lease transfers, in which case you could attempt to transfer to someone else looking for a sub 2 year truck lease.

Agree with the others here, if no transfers materialize, then ride it out. No need to go down the Negative Equity rabbit hole.

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5

Transfer it.

The question is how much you would have to pay to take over the lease by someone else.

What is your monthly?

You can post it here on LH for free.

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6

Nope. It’s being rolled back in and you’re eating the negative depreciation. On top of that, you’ll be paying interest on the rolled in costs. Run away… transfer out is your best option at this point.

And come back when you’re ready for the deal. Good luck

7

I was anctually able to reduce the negative equity and got the dealer down to only rolling $5,000 negative instead of the original total. They were able to buy it out for $48 and gave me $43 for it. Default money factor, 63% residual. 64k MSRP, got them down to 58k and walked out around $837 a month. Thanks!

8

Did you avoid paying the sales tax on the buyout by trading it in or does that only work on financed cars?

9

How?

(10 characters)

10

image

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11

I have nothing to add except that is tremendous GIF pull. Just spectacular.

Also, TIL Ford made a Explorer Tremor. I can’t recall ever seeing one of those discussed on here.

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12

You haven’t heard of the Tremor??? Sorry I couldn’t help myself.

image
Only $850 per month

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13

+$5K down (for the newbies who might be lurking….).

14

Nope not 5k down. Only $2500 OOP.

15

No sales tax on the buy out!

16

I’m not the best at math, but, if you bought out your lease for $48K and someone paid you $43K for the car, didn’t you effectively give the buyer $5K? I assume that the dealer simply skipped the step of you buy out your car yourself?

17

Other way around. It would be “5k down” if he rolled in 5k of positive equity.

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18

Ah, okay, that makes sense.

So I guess the Explorer Tremor lease decently, if the deal was $2500 down (I assume not DAS) +$850 (including $5K neg equity)?

[Edited after thinking through the math some more]