Where to bury negative equity (NJ) HELP

Im trying to help a friend who is about 2k upside down on a limited 2014 Avalon. At this point the objective is to get out of a bad loan so there is no brand loyalty. the only thing he would like is a comparable model to the Toyota but is really looking for big rebates/conquest or ny other dealer/manufacturer cash in order to make things right. any help would be great …THANKS

Sounds like ES 350 is a natural choice :slight_smile:

2k is not much in comparison to some other bad deals we’ve seen around. Very often leases are upside down.

I’d say absorb it,cut the looses now and try to get a good deal on the new one to make up for it.

What about the disposition fees are you subtracting these from the 2k that your friend would have to pay?

that doesn’t sound bad at all but what I’m looking for is any major deals that would steer to one particular car or another. suv is also fine. when I say comparable I mean what packages the vehicle comes with like leather, heated ventilated seats, nav etc… the brand nor type of vehicle such as suv or sedan doesn’t matter. thanks

Is the Avalon leased or financed? How much is owed? Mileage?

Relax … 2k is like change when it comes to negative equity …it’s not a big deal. there are bigger fish to fry …

If it’s financed- I would refinance it with a credit union.

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financed about 24k owed. I’m guessing high interest on the original loan but definitely upside down about 2k based on a private sale of the car. of course a trade in would yield a higher neg equity

And what made it a “bad loan” to begin with? Shady dealer? Rolling in previous negative equity? Credit issues? A combination of two or three of those?

Private party book value on a 2014 with 50k miles is about 20k in “Good” condition, so it might be a little more than 2 grand you’re looking at, especially at a dealer.

high interest. you know when you answer the “how much you wanna pay a month” question then they can change whatever they want. car is 9/10 condition with 30k on it and thats why I estimated 2k on the low side but do agree it could be more. also, I think some negative equity was also previously rolled in from another bad deal.

I also thought of that but they just so happen to want a different car. I already explained that worse case would be to refi and then wait for a good deal weeks/months down the road.

Problem is that a dealer is definitely going to lowball you, especially if they know it’s under water, with the used market being flooded with off lease sedans, etc.

yea I kinda figured that. i was hoping for a private buyer since the mile were relatively low but what are the odds if the market is flooded. just a bad situation and no way out unless they can accept a “lower” model car with good rebates. I’m out of ideas.

Yeah, a dealer would be the only way to deal with the negative equity, unless they had money to put down that could be used to cover it privately instead, and shoot for something that’s a true zero down afterwards.

yea definitely willing to come out of pocket 2-3k instead of getting the lower trade in value from the dealer and dealing with the same thing all over again. I. do believe the dealer will low ball and put them back in the same situation. Lesson learned I guess.

  1. go to carmax and get a no obligation trade in offer for Avalon

  2. search the forums to find the most aggressive curret lease offer that is acceptable for your friend - (RX, Volt, Lexus ES, etc.)

  3. use #1 as leverage with #2 to make an incredible deal

will do. any quick way to search for those deals or is it really a hunt of one by one. also, any chance that carman would be close to a private sale?