Off topic a bit and I know this is America where half the country couldn’t pay cash for an immediate $500 expense but I’d suggest you find and sit down with a financial planner to get a budget and a real financial plan down on paper. Become a friend with numbers! 
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That’s assuming OP can qualify for such a rate. On average, I have seen personal loan rates in the double digits.
I agree for the most part, but every once in a while Ford sneaks in some nice leases to try and move metal. This month, some examples include:
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2024 Ford Edge. For Northeast customers, MF is 0.00013333 (assuming the LH calculator isn’t screwed up). That residual is a disaster, but that just means the buyer needs to negotiate more off the front end.
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2023 Ford Explorer. For Southeast customers, MF is 0.00095417. Even applies to that ultra-fancy ST trim.
If you have a non 4XE Wrangler you may be better off keeping the vehicle and paying it off. Wranglers have historically had a very high resale value relative to other vehicles. Though you took a beating these past 14 months, the used prices will stabilize soon. Just keep it in decent condition and you’ll likely be able to catch up faster than you would with most other vehicles.
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Forgot to add it is a 4xe wrangler. The 7500 tax credit was used for another emergency loan that occurred last minute, I was planning to use that towards the principle but life happened.
Id bet these are non-starters from an LTV standpoint when youre talking about $16k in negative
I don’t know Ford Credit’s LTV rules but the Explorer ST AWD has high enough MSRP that it could be possible to smash some neggy eggy in there with what amounts to 0% APR financing over the lease term when assuming that low MF.
Maybe not a good option for the OP. But that explorer lease in general is looking real good compared to last month. ICE 7-seater actually leasing well! Yay? The never ending deluge of junk EV leases is so depressing.
neg equ in a lease is 0%?
I edited my post to mean that low MF would enable basically 0% financing to bury the negative.
True, OP or anyone else has to shop around. Amex is giving away personal loans it feels like at 7-10% to boost business.
Relative recently got quoted 7.99% on credit score under 700 (though they have long term history with Amex just messed up elsewhere).
OP, curious, why did you finance and not lease the 4xe to begin with? They have been fairly cheap leases in the last few years.
I do not recommend rolling in negative equity in a new vehicle. By your first post, it seems like you have done this a few times already? What makes you think you won’t do the same thing again in another year or two? End the cycle. “starting fresh” is not rolling negative equity into another vehicle, it’s just perpetuating the situation with the chance you will keep doing it.
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Besides the psychologic aspect if I will do it again or not, is it not ideal with the plan I have stated of starting fresh by doing a lease and end it when fulfilled and walk away? That is the question.
Why do you not recommend doing it? Besides saying that I’m going to do it again.
I’m not up to date on the tax structure in TX, but you will likely pay taxes and interest (this is a definite) on the negative equity making it greater than 16k. Like others have mentioned, this could add 4-500 additional per month if you can even find a captive willing to fund the LTV. Personally, I’d keep the car and pay additional principle each month and reassess in a year or 2.
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The thing is he might be DONE in 30 months or less depending on what he picks.
For example if he likes volvo, roll in all the negative equity, then end the lease 6 months early and get almost 17% of that negative washed away. When you are talking 16k 17% is 2700 ish completely waived
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Not a bad idea, if OP is okay with two back to back Volvo’s and commits to staying with the first through 30 months and then I guess the second to full term. What would be the best Volvo to do this one? Care to provide a sample calc? Taxes are pretty bad in Texas without credits, yes?
This is why I keep coming back to this since he’s done it a few times. Break the habit, OP!
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Yes I have history of rolling equity. I’ve never leased before. Never thought about it.
I just messed around with two random cheaper monthly payment Volvos from a brokers sheet (XC40 core and C40 recharge), rolling in 16k adds about 20k additional total lease cost which includes over $1000 more for both rent charge and interest, not taking into account 6 months pull ahead. I still dont think it makes it worth it when the MF are 6-7% along with the tax. Again, I’m no Texas expert, maybe a TX broker can weigh in.
Typical Texas leases are taxed at 6.25% on the selling price.
Credits or rebates can make that 1.25% if available
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Should have mentioned the APR to calculate this.
No. Polestar could be had for under $400/month lease.
You paid a lot for a 4xe. Why risk going to a dealership who would take you to the cleaners again?
How is paying $500 extra for a lease “starting fresh” ? In the end you have to pay for the negative equity. Either pay it with your current loan or pay it with your new lease payments.
Hence the 7% interest rate. How’s your credit score?
Difficult to help you without having any numbers. Just sit down and do your own calculations and see which way you come ahead. The least headache would be to just pay extra on the principal and try to pay off the loan as soon as possible.
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This.
The math may work out to bury some of the equity in an EV, but I feel like that situation is ripe for the OP being ripped off or just continuing cycle (esp since OP admits that they are new to leasing).
Paying extra on the current loan may not be the “best” (fastest or cleverest) way, but it’s the way that’s the least subject to manipulation (IMHO).
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