What lenders will accept a lot of negative in a lease?

This is the correct answer, staring you right in the face. Sell the Lincoln, use that money to pay off some of what you owe. Drive the Accord while you pay off the rest of the Lincoln. Then when you’re out of car debt and assuming the rest of your finances are in solid shape you can trade in the Accord for a new lease.

The accord is a 2001 with 163k miles… lmao. Are we actually being serious? Plus, how would I sell a car with a lien on it, especially when I’ll still have 5-6k owed if I sell it for a decent price. Unfortunately I don’t have that kind of money just chilling in the bank.

How is he going to sell the Lincoln if he owes more than it’s worth?

You started by saying 8k underwater…now it’s 5-6?

What is your payoff vs what the car books at?

You can sell a car even with a negative balance, you will just have to get a loan for the difference between what it’s sold for vs the total owed. Call Lincoln finance or whoever you have the loan with or go to your bank/credit union.

I appreciate the appeal of taking a cheap lease and stacking your net equity but as others have said, you will still have tax and interest on your loan that makes the monthly worse, especially such a big balance. It is not as simple as dividing the balance by 36 months plus the lease monthly. The wise financial decision as others stated would be to work down your neg equity and drive your beater car but you seem to be looking for someone to validate that this is a good idea? It’s not.

Park in a bad neighborhood with the keys in it, or a snowy off ramp during a blizzard. Make sure you have gap. So if you’re serious, find the cheapest thing you can lease for 36 months, probably an Encore. If you roll $8k in that will add about $250 to the payment, so best case you’re at $450ish, maybe I’m dreaming with those numbers, bet that’s your best bet.

Trade value on what a stealership will give me vs. private sale I could get are a lot different.

Owe 18500 - books anywhere between 9000-10,500 on trade. Private party sale is about 12.5k.

And lmao @joeblogs, believe me the thought has crossed my mind. Ironically enough I’m an insurance agent… not sure how well that would work for me.

That’s what I was trying to do. I had an Equinox offer of $469 for an LT AWD with my negative rolled in. Just wasn’t sold on the car, wanted to look at a terrain. Now I played around and the April lease incentives are gone. Should have just left the stealership with the Equinox. :man_facepalming:

Then you were smart to walk. Getting into a car to roll negative equity is bad idea #1. Getting into a car you don’t like for 3 years is bad idea #2

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Yeah but in three years you would have been done with it, at some point you’ll have to bite the bullet or risk having a worthless car that you owe a bunch of money, or an expensive repair to keep said worthless car running. At least with the $469 you wouldn’t have to worry about any repairs.

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I am with Jon on this. An accord with 163K mile in it is about mid-age for this car. It can easily go to 250K with proper maintenance. From practical pointo of view, since you are 10 miles away from work, beside it doesn’t look as good, is there any thing else wrong?

We’re still forgetting about the fact that he can’t sell the Lincoln as he owes several thousand dollars more than it’s worth.

Assuming he own $8000 @4.99%, pay over 36 month, monthly for that is $240. If he keeps the accord, he will have $230month in his pocket every month. On average, I don’t think an average accord, even at that mileage, needs $230 in maintenance and repair every month for the next 36 month. Plus his commute is only 10 miles, not much stress for the car. The issue is the new lease, you will pay $469 even if you are under milage. I still don’t see getting into a new car is a properly to get out of debt

This will depend on how much the car worth. If as he indicated, private sell for $12.5K, and he owns the bank $8000, he will own $3500 after selling the car. His payment to cover this debt over 36 month is only $105. He will need to drive his accord for a while. IMO, this beats the $469 per month payment. Difference is $360 a month, in 36 month, he will have $13k in saving.

A bank isn’t going to accept a monthly payment And release the title. You’re also looking at best case scenario. From what it sounds, he owes at minimum 5k. He’d either have to find a personal loan or utilize a HELOC if he owns a home. Credit card if he can find a high enough limit, preferably with a 0% interest for 12 mos and transfer to a different card, assuming FoMoCo or whatever bank he’s using would allow a payoff with a CC

Then there’s the hope that someone wants to buy it to begin with.

He also doesn’t have the money to pay cash.

Hopefully he’s learned his lesson

Short commutes are more stressful to a car than highway miles are.

IMO, sell the Honda if you can get 2k for it, put it toward the Lincoln. IDK what your monthly is on the Lincoln, but double it if you can, pay it off in 18 months, sell it for a couple thousand and then get yourself a lease.

This doesn’t make sense. The bank is in no better a position with a 12k debt secured by an 8k asset versus 4k in unsecured debt. Banks aren’t known for being flexible but from their perspective they are no more secure with him holding the car. I think he should find a way to sell the Lincoln and drive the accord while he pays off the 4k difference since he indicates he thinks the Lincoln may soon need expensive repairs.

I’m not sure where you’re coming from here. You’re saying he should take a personal loan to pay off the car after the sale while driving the Honda, vs selling the Honda, putting it toward the Lincoln and paying it down as fast as he can? He’s still going to get a few thousand out of the Lincoln in 2 years when he goes to sell it. You’re also assuming he’s going to get top dollar for his sale right now. None of us have any clue as to what condition this car is in. Likewise, none of us have a clue as to how many people are looking to jump on a 8 year old Navigator in his area to justify a top dollar sales price. KBB and NADA are guides. It all comes down to what someone is willing to pay for it. In regard to the tranny issue, have a local mechanic look at it and advise on the condition/possible problem and the cost to repair. Then re-evaluate from there.

Everyone says “Accords are bulletproof…” Hondas break down too, and with 163k, he’s moving into questionable territory. There’s no guarantee he’s not going to throw a rod or have a slipped tranny next week just because it has an “H” on the trunklid. I’m not saying it’s going to happen, but surely can.

You rolled negative equity once already, it’s already starting to snowball and now you’re trying to find justification to do it again. The best advice that can be given is to NOT DO IT!

Now, take the Lincoln to Carmax. They’ll give you a real number to work with as a starting point. Maybe take the Accord there too… with enough luck, maybe between the 2 vehicles you’re even, then you can start from scratch. Once you have the offers from Carmax, if they’re not to your liking, post both vehicles for sale personally and see what you can get out of them.

Bottom line is that the best course of action is whatever gets you back to even first.