If you’re truly in dire straits and $10K leads to bankruptcy, the last thing you want is to take on more debt. I can’t believe the responses here are all “just lease or buy a new car”. How about you buy a 12 year old Camry instead and pay off the $10K instead of accumulating debt on top of debt? There’s no law that you HAVE to drive a brand new car.
It’s amazing how the auto industry has programmed everyone, no matter how effed they are financially, that a new car is non-negotiable.
Wrong. An easy example is getting a crazy deal (with incentives) on some lot anchor i7, dumping all kinds of NE into it to absorb it, and then flipping the whole mess on SAL to indeed bury and/or wash it to avoid paying it back with interest.
correct. I still need a car, and being able to put the NE into a low interest vehicle is a positive. Especially when the tesla is going to depreciate even more. The idea was to package the bad car into something more manageable and get rid of the tesla. Has nothing to do with owning a new car. If there wasnt so much NE, I would be fine giving it to carvana and being happy with a wash and use an older vehicle I have in the meantime.
Looked into Acura ZDX yet? 10000/24 = 417/mo
So you’ll shed your NE in 8 fewer months, have a much nicer car for probably a bit less and won’t have further depreciation risk.
Who on SAL is going to take an I7 lease with a payment that is inflated by thousands of dollars? There may be a few cases where somebody needs a vehicle with a high payment to wash some cash, but my guess is those deals are few and far between.
So you’re saying I can make $10 debt disappear this way. What if I don’t owe $10K. Then I should be able to profit $10K using your plan? If it’s as simple as that, I’m gonna quit my day job and lease i7s every day.
It is possible but it may take time and also may not happen at all. So can only be relied on as a last resort. Better not to have negative equity in the first place.
