There’s a lot on the back end consumers and dealers don’t see re-residuals.
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Lucky for Adam, he sees everything and can take the arb 
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I think it’s more a matter of
- Underestimating how significantly the EQS would depreciate.
- Slow to respond when they are wrong given low transaction volume.
After all, AFG has programs for 1000’s of cars and 99% of them are well in their favor.
This is now my 4th balloon, having financed a 2021 Model Y ($238/mo), 2022 Model S ($584/mo) and a 2022 Jeep Wrangler 2dr Sport ($280/mo) in a similar fashion. However, those I all sold before term end, to capture positive equity. That won’t be the case here.
Is the lender allowed to reject your offer to return the collateral/car and basically call the loan? Effectively requiring your balloon payment at the agreed residual?
Balloons are illegal in California for auto financing, so I don’t now too much about their fine print.
Loan agreement requires the lender to purchase the car from me at the residual value, less disposition and wear/tear/mileage overage. I do need to follow a required timeline of events, deliver the car to them and stay out of default.
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How much more in payment would it be if there were taxes involved (non NJ), let’s say 8% in taxes?
I would try to finagle some kind of offsetting trade-in, because with a balloon you are taxed on the full loan amount. Rough numbers… At 8% that would be ~$4800 and over 24 months that would increase the payment ~$200/mo. May make sense to go with a longer term (at 36mo its ~$133/mo) in a full tax state or with no trade-in.
as he stated in his post… tax due is on the total car price, as if purchasing a new or used car
Do the numbers in this calculator include the benefit of walking away at time of balloon payment, or is that a separate add on? AFG Calculator
how do you ground the car at the end? I mean how logistics works? Can you do it anywhere?
Link isn’t working, try screen capturing the calculator output instead. But the walk-away option is built into every loan by default. No additional costs besides what the calculator shows.
In most cases, you return it to the closest Manheim location.
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Im on the crazy side like many others here on getting into used German vehicle with 43k miles. But hey if it works out in 24 months, can u help me get into an LCI M5 Comp and I promise I will pay you in highest valuation of Starbucks card. 
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MMR of my EQS when I purchased it
Current MMR plus 3000 miles.
We are getting pretty close to my buyout and I haven’t made a payment yet.
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What’s bizarre is MMR and estimated retail values making big moves in opposite directions. Wonder if there’s some macro factor at play
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BTW, were you able to get free extended warranty or did you end up buying one?
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Every used EV going up $7,500 once the EV credit goes away.
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The EV deals might be coming to an end unless the Dems flip the House. This March might be the last hurrah (in addition to free charging going away for BMW and MBZ, more probably to follow).
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Streets will flow red with $300 monthly ICE leases and $1,000 monthly EV leases.
Z0lt3c will become P3tr0l
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that would be the day
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He’ll come around eventually. ICE is awesome.
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