I recently bought a 2018 F-150. My monthly payment is $607 at 6%. Looking at KBB and NADA I’m about 8000-10000 under water. I don’t have any official offers though. I know I’ve read many times it’s a bad idea but I really need to get out from under this payment. I’m wondering if there’s any decent lease deals/rebates that could help with the situation. I know I’ll be paying for the negative equity either way.
Sorry to hear about the situation 
Unfortunately (regardless of whether it is wise or not) it will probably be very difficult to find a way to bury this negative equity and have your payment be much less than it already is now.
Just using round numbers, or a typical three-year lease trying to bury 10 K in negative is going to add $300 a month or so to the payment right there. That means just to break even youd need to find a car you could lease for about $300 a month with no money down, which is going to be very hard to do when so much negative has to be rolled in :-(. There is only so much negative that one can “hide” in a new lease.
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With that much negative equity you’re likely going to end up with a lease payment similar to your loan - except you will be driving an econobox. Anything with a substantial lease incentive or rebate usually carries a horrible residual.
The best you can do is eat the negative equity and get a clunker. And I mean a serious clunker.
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Would it be possible to refinance at a lower rate? That may be the only option for “some” relief.
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Yes…By chance could the OP use a home-equity line? I saw that Bank of America was running some promotions at less than 2% with no closing costs.
Have you checked loan rates at credit unions to see if you could shave 2% or so off the rate if you refinanced? It would probably be the best option here.
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He’s probably going to hit a wall with LTV.
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Not the best time to be looking at trading in your vehicle. If I may ask, did your employment or cash flow situation change for you to be looking to get out of the F-150? If not, as others have suggested, I would look into refinancing the loan.
Good luck.
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Yeah I didn’t think there would be much I could do.
The problem will be that he’s going from leasing at 6% to purchasing. The payment will probably be similar or higher even at a much lower interest-rate.
I’m actually financing now but I would like to lease if at all possible
Ahh. So you can refi the loan at a lower rate. as others said rolling 5 figures is going to end with paying the negative (including rent on it) over the lease.
It’s certainly possible but it’s going to take some light work on your part to find a car with the trunk money that can carry that loan to value
I’m still new to all this. What would be the best way to find a car with good trunk money
FCA usually has lots of incentives. but if you are 10000 under water and you do a 36 month lease that is almost $300 right there. The cheapest leases I have seen recently are still $200+ all in so leasing really won’t lower your payment that much.
Possibly $10k in negative equity is going to be almost impossible to absorb into a lease for 3 years. Even if you could find something that would work financially it’s probably going to be something like a Toyota Corolla or similar. Is it worth it to go down to an econobox car to save a few bucks a month. I do literally mean a few. As other’s have said…~$300 bucks of your 36 month lease will be negative equity payments. There is no way you are going from $600 bucks a month down to $400 and absorb that negative equity. I pulled $400 out of my rear end. OP really never said what his target # is.
You are looking for incentives AND a low money factor, AND something that can carry the advance.
You can check Edmunds or deals here. If you want to stick with Ford look at the Fusion Energi (and fingers crossed maybe some extra bonus money Labor Day Weekend). I havent checked this month but some Jettas have had super low MF and incentives.
You might go through all of this to only save 100 bucks or so a month, but you need to be prepared that if you do this that you are not exiting that lease one day before disposition. So if you’re giving up your big American truck for a VW (for instance), you can’t be over miles in 15 months or bored in 30. You are stuck together until term.
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What state are you in?
With that rate likely tier 2 or 3 credit too
Especially when new 2019’s were 30%+ off at X-Mas 2019.
Bear
Alabama. Credit score is 744
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