Negative Equity and first Lease question - advice needed

Whats the mf on the bz4x?

1 Like

This was $17,750 last month to get rid of all the 23 models. It was $16250 for 24 models last month. Most of the inventory was gone in South California. Locating 23 might be difficult.

The MF is 0.00001.

Are there tax credits on the bz? If not, I assume the taxes paid on the selling price in TX will not be that diff from OP’s 7%?

No Idea about TX. :man_shrugging:t3:

I picked the iX because:

  1. The MF is kinda-low-ish
  2. BMWFS is providing the lender tax credit thing (showed 1% tax in the marketplace listing)
  3. The MSRP was substantial enough that you could bury that negative equity without exeeding the LTV limits

But yeah, ultimately now I understand it is a bad example. If you went with the iX and rolled negative in, you’re paying about the same $ over the next 3 years than if you just rode out your Jeep 4xe loan payment (including the extra $200/month).

So IMO the BMW iX would be a vastly superior vehicle to the Jeep 4xe. But from a purely financial perspective you’d have no equity to show for it at the end of your iX lease, while you’d have some value in your Jeep.

And we’re trying to find alternatives that help you make a better financial decision. Not just replace one bad decision with another one.

A few months ago people were getting $400 monthly EQS before rolling in negative. In that case, I feel like swapping to a $850 monthly lease (once you roll in the negative) and then saving the $350 a month differential compared to your Jeep strategy may be better. Just because then you can earn a return on the $350 monthly savings and you don’t have to deal with a Jeep residual that may be in the dumpster if these 4xe fail to catch on.

Id be looking to see if ev6s or ioniq 5/6s had tax credits.

Thank you that makes a lot of sense.
Yes I like the idea of finding a lease that equals what I am paying now but I am having a hard time finding one. Besides the bz4x which is the highest lease cash I found. And there are some 2023 models near me the deal ends 6/3. Maybe I should look into that? Surely that would be a similar payment?

When you all say tax credits does that mean like the 7500 I already got with the Jeep?
So I should be looking for other “lease cash” or “lease assist” instead because I believe I cannot claim tax credit twice.

Lease cash doesn’t save you money. It just helps with the LTV and bank approval.

Low MF and TX tax rebates save you money.

1 Like

The problem with some of the lower-MSRP EVs is that they may not enable you to roll in the $16k of negative equity. If a lender allows 125% loan to value, then a $65k MSRP car is enough to capture $16k of negative equity (excluding the taxes/fees/etc).

If the LTV is capped at 120%, the MSRP would need to be $80k.

Even with something like the Toyota offering 13k bringing my negative to only 3k?

Hmmm yeah I guess if you put it that way the BZ4X is enough.

This is why we need a LH blog post, and why I’m not qualified to write it.

@mllcb42 and @paranoidgarliclover collaboration when?

In TX, lenders occasionally offer sales tax credits which remove some/all of your state sales tax. Its a huge deal in TX and can save thousands of dollars.

The ev tax credit only applies if you purchase. There is no limit to how many times you can claim it if you did purchase. On a lease, you get whatever incentives are offered (which may include an ev credit equivalent incentive, but it isnt actually a tax credit).

1 Like

Depends on how much in taxes and fees there are.

That and you’d have to drive a bz4x for 3 years. Cant imagine why youd subject yourself to that with ev6 pricing like it is


Lucid-Mania also seems like a missed opportunity to bury negative equity.

Ev6 is only 7500 credit while the Toyota is 13k. I’m not seeing any other deals for ev6 in Texas.

Plus select vin cash. Higher than $7500 on some trims too. 23 wind rwd gets $10k plus $1500 select vin on 24 month leases.

The real important question is which ones have sales tax credits.

I called Toyota regarding the bz4x. The way he explained it to me is that even with 16k off the Toyota (he had another deal going on I am assuming) It does not knock away my rollover and only affects the lease payment (making it around 300 a month). So in that case, should I be looking for low lease payment offers and not necessarily credits? If credits do not apply towards helping my trade.

You have to pay for the negative equity no matter what you do. If the toyota is $300/mo before your negative equity, its going to be $8-900/mo with it. There is no avoiding that.

You need to find a lease with a low mf so it doesnt turn you $16k in negative equity into $20k because of high interest and you need something with enough incentives to allow the lease to fund due to a high ltv because of how deep of a hole youre in.

Your focus should be on something with sales tax credits, low mf, enough incentives to fund, and a low total cost of ownership so you dont end up in another deep hole. This is going to be painful no matter what you do. Your only concern should be doing whatever you can to minimize the pain.


That makes sense, thank you. So the Bz4x at the low mf still would be a good choice then.