What is the max ltv on a lease? Is it dealer specific and if so are there brands willing to go higher than others?
Probably a lost cause, but wanted to cover all bases. Currently have 22 Grand Cherokee for $900 per month, financed at 6%. I’m upside down about $15k from previous roll over and depreciation. Goal would be to solve negative equity issue, smaller payment would be a plus. Credit is 700ish. Is this hopeless?
I don’t have any advice other than to hope that you have read previous, similar threads, and that you brace yourself. There will be some good advice in the many responses I imagine you will receive in this thread…
Hmmm… hurricane Idalia could resolve your negative equity since you’re in FL
I’m on the East coast, it missed me.
There’s always another lol
Your $15k negative equity is going to be good for about $500/mo on a 36 month lease, all by itself. So you’re looking for a vehicle that normally leases for around $400/mo that you can bury $15k in? If you can out of pocket several k, a base wrangler sport s 4xe is probably going to be the closest thing you can find.
All of this depends on the lender’s guidelines. Check with local/national credit unions. The highest I saw was 120% of MSRP for a new car and 110% of the market value (mostly Black Book, some KBB) for cars less than 2 years old.
Open a new (carefully selected) credit card that offers 0% (or very low APR) balance transfers for 12-21 months. (You might also have transfer offers on existing cards, but read the terms carefully).
Schedule a $15,000 balance transfer from your auto loan to the credit card, and then refinance the remaining balance on your auto loan into a new auto loan.
If you’re unable to repay the credit card by the end of the promo period, you can open a new balance transfer card and repeat.
If you lack the self-discipline to pay off the credit card balance before interest kicks in (and potentially applies retroactively), ignore everything I just typed.
The other risk here is that if you’re running high utilization on your existing credit cards and/or you’re carrying a lot of other debt relative to your income, you could be approved for a credit card but the limit may be too low to be useful for this purpose.
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