How about looking for another job that doesn’t involve so much driving lol? TMA - Too much advice?
LOL, yes. Actually next school year I intend to start teaching piano from home instead of driving to people’s houses so that should help too. Didn’t think about that!
That’s technically illegal. That’s called a straw purchase.
your right…i retract my statement
More TMA!!! If you’re self employed, your lease and the mileage are all business expenses 
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That is just fab advice. Nothing beats a good tax deduction.
Not “all” business expenses if used for personal use also.
Correct, but i’d hope she’d see a tax accountant and not me 
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For sure. I use mileIQ to track miles for business.
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A quick question again about my underwater lease. Let’s say I decide to trade it in for another lease (just before I go over the miles) how do I go about the negotiation? Do I do the normal recommended thing which I’ve read is to keep the trade separate and after the price negotiation or is there some reason that I need to let them know that I’m currently in an underwater lease up front. I ask because one dealer told me I had to get a certain priced car (more expensive) in order for the deal to work or get approved by the bank. Wasn’t sure if this was some sort of sales tactic or if it was true. Is it okay to just negotiate price of car first and keep the trade in separate (if you’re trying to trade a leased car in early)?
If you are too much underwater, the bank won’t approve the lease period.
How much underwater you think you are going to be?
Also if you think you will keep going above the allowed miles why not get a pre owned car and drive it like you stole it?
Yes they need an expensive lease in order for the deal to work coz they are burying the negative equity into your rebates and stuff.
You would always have to tell them that you are underwater, coz the extra loan adds interest to your payments.
Hope this helps.
— Mod removed dumb post —
Thanks that does help. In the past, a dealership said that the bank is willing to approve the new lease if I co-sign which I can do. I just didn’t know if the part about having to get an expensive lease was true so thanks for the info.
I started shopping around at other dealerships online but I just wasn’t sure if I had to tell them at the beginning about being underwater or if it can wait until after we negotiate the price of the vehicle. I know the extra loan will add on an extra $200 more or less per month and I could just keep that number in my head until we discuss trade in after so that I know how much my monthly payment will be (more or less). Or is it more complicated than that (you mentioned added interest) and I must disclose it from the beginning no matter what?
7000k underwater btw
How much is it per mile when you go over. Would it be better to ride your lease to the end and simply pay the mileage overage? Playing this negative equity game doesn’t seem like the best long term strategy.
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7k? Probably not a good idea. The loan to value prospect here is terrible and even with a co-signer, I don’t think a bank would agree to that kind of negative equity.
Imagine the bank, loaning out 60 to 70 percent of a cars value JUST to a previous car’s loan. I’d be hard pressed to find a legitimate institution that would be okay with that without a lot of money down, in which case you should just pay the difference.
Consider, to be in the 400 to 500 dollar per month range with your trade in and following some of the deals we see here on LH; do you think you’d be okay with spending almost 500 on a VW Jetta? A Hyundai Elantra?
What if you do not like one of the econo-boxes for 500 a month? Will you want to roll THAT negative equity in? Gotta think long-term with this one when moving that kind of negative equity. It’s overall a terrible idea just to roll in 1k or 2k (people do it anyways), let alone over 7-large.
Are you able to come up with 7k in cash for the negative equity? I realize this is a silly question to ask if you’d be considering in rolling it in the first place… but I have to ask. .15 cents a mile isn’t terrible for an overage (mine is .25). How much are you over by? May make more sense simply to pay the overage at lease turn in.
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Here’s your solution, assuming your 7k underwater. You need to find a car that is $200/mo on a lease with nothing down, I assume you need 15k/yr, so get it setup that way. If you roll in your negative equity, it’ll bump the payment about $200/mo. If you can get this done you’ll be at $400/mo and should be good on miles and can walk away from this problem in three years and maybe less if there is a pull ahead program. The first step is to get some online appraisals of your subaru from carvana, vroom and carmax if one is nearby. The vehicles that might work would be a Jetta, maybe a Sonata or Elantra, an Equinox or Terrain might work too, assuming they are base models no options. It won’t be easy and will require you to grind dealers as hard as you can but I think it’s doable. You might have to wait a few months if the current programs don’t work. Also try to utilize any sort of employee pricing extra rebates boost up etc. I’d negotiate the deal first and bring the trade in later, get the dealers to match or come close to the online appraisals, but don’t tell them what your offers are, they might offer more, don’t want to show all your cards.
What am I missing? Even if she is over 20k miles that is only 3k. Why the heck would you take a 7k hit?
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I haven’t read all of her posts, only some… did she state WHY she wants to roll over so much equity? Because she’ll be over the mileage at turn in?
Rolling in 7k in negative equity only makes sense if her mileage overage is almost 50k miles at lease turn in.
Is she anywhere near that point?
A bank usually have some policy on what the loan to value is. It is for risk management. So car owner wont go rolling 20k negative equity on their cadillac to a $19k msrp chevy cruze. LTV can range from 100-120%. Some subprime lender can loan more than 120% but you are looking at ridiculous apr which qualifying on those will be very hard unless your case is unique.