Hi so i have a tesla model s i bought mid covid that im deeply underwater on and tired of the car.
Im about 25k underwater on the tesla
My question is would you guys just write the check and pay it off or i can roll it into a new bmw/mercedes electric lease and use the rebates to cover the negative.
The payment isnt a issue just want advice on what to do
Just to phrase this differently for you…
“Can I write a check and pay it off or roll it in so I pay both tax and interest on the amount, turning $25k into $30+k”
Does that change you thoughts on rolling it in?
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didnt think it had tax on it never thought about that since i already paid it on the previous purchase, interest isnt a big deal because its 1.2 percent making far more in the market then that
To Matt’s point: pick one of those things you could lease, take the negative equity and divide by term, times (1 + new MF) times (1 + your tax rate), and see what you’re really dealing with (e.g. an extra $1250/mo for 2 years).
I’d do that math, then figure out what I could drive for an entire lease without getting bored of it (because you’re handcuffed to it for term), and then I’d make it my job to spend the next months getting it bought back as a lemon. If I couldn’t do that, I’d write the check or ride it out, the carrying cost is absolutely not worth it.
On the current lease maybe, not on the new one.
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By rolling it in, you get to pay tax on it again as part of the new lease, turning than 1.2% into more like 10%, depending on you local rate. At least it’s 10% once and not 10% apr.
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interesting i never knew that have never rolled negative equity always just put the cars in my company and let them drive the wheels off. Does it get taxed off of the 25k negative roll in or does it get taxed as a whole lets say 95k the out the door price of the car
current rate for a bmw ix on lease is 1.2 percent only reason im even debating rolling it in
California taxes the lease payment
Whatever you roll in increases you depreciation payment by that amount. It then is subject to rent charge and tax on the monthly payment amount.
ok so according to the calculator its only about 150 bucks more over the 36 months. so costs me about 750 dollars a month so i am better off keeping the money in the market and just increasing the payment by 750 dollars i think. which way do you think i should go
How did you calculate only $150? $25k over 36mo is an additional ~$700/mo, which means you’re paying an additional $2500+ in just taxes (assuming 10% tax rate) over the 36 month lease.
i plugged it into the calculator it must not of calced it right thats what i was thinking to when looking over it
If you are writing off the lease payments in full under a biz purpose- roll that ish and keep cash freed up
@z0lt3c its a Tesla Submarine party! Help these unfortunate souls out of their Teslas… there must be hope.
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I’m guessing that we are talking about a 2022 Model S and OP probably paid close to $100K if not over. The only consolation I can provide, is that, historically, this depreciation is not unusual for cars this price range, EV or otherwise. If you tend to “get tired” then, well one should be leasing. Hopefully OP owned a Tesla before this one, which may not have been upside down. Hope? If the OP can afford the payment, they fetch $100/day on Turo. Otherwise, I would shop it for the best price, stroke the check and not look back.
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