So my wife bought (financed) a brand new 2026 Defender last month. Paid sticker price ($80K). Now she decided she doesn’t like it and wants to get rid of it. What is the best way for me to dump the car without getting hit with all the negative? Couple offers so far, I found a brand new 2024 G550 (V8) and the dealer will discount $30,000 off MSRP, and roll in $20,000 negative equity on my Defender trade. Another dealer will do $30,000 off MSRP on a 2024 GLS 580 and roll in $20K negative trade. Another different dealer will do $30,000 off MSRP on a 2025 G580 electric. Does any of this even make sense as a mitigation strategy? Any other ideas? (other than Divorce!) LOL. NOTE: I could purchase the new car as a Section 179 vehicle for my business, and then just give her my other car to drive. So maybe the tax deduction helps offset some of the negative on the trade?
main thing right now is to get quotes from different parties–dealers and online dealers such as carvana/carmax and etc and see exactly how much neg equity you are in. Once you shop the car around, then see what works best for you/your finances. I would evaluate the deal you are getting, for the new car, on its own merits and not as a whole deal with neg equity rolled into it.
-whats the % the car was financed for? new finance rate?
Financing is 5.5% via BOA, through the dealership. Sticker was $80K, with tax the finance amount is close to $90,000. Dealers are offering me around $65,000 for the car. Appraisal tools are ineffective because there is not a single used 2026 Defender on the market yet right now. They are basically valuing it with used 2025 pricing.
What about a deal like buying the 2024 G550 brand new for $30,000 discount off MSRP, and then rolling in $20,000 of my negative in to the deal, so it’s basically like buying the G550 at sticker and having no negative. Does that make any sense? And that car won’t depreciate as much so it could help to cleanse out my negative?
for a brand new 2024 G550 V8, I thought usually there aren’t discounts on those cars that much? Maybe I’m wrong. Also, if I do a section 179 on it and use it for my company, it’s like a $180,000 deduction which puts around $60,000 cash back in my pocket. Am I still being an idiot or does any of this make sense? Thanks guys
Yeah, have her drive any of these for a week first.
And it’s just plain stupid taking a huge hit on a brand new vehicle just because she “doesn’t like” it. In any case, sell the Defender separately outside any other vehicle purchase/lease, if you must.
Do you think this way about all your business expenses? Do you think you’ll get more cash in your pocket when your employees ask for a raise or a vendor starts charging more or a landlord starts raising rent?
Here’s a wild idea: if you didn’t “write off” $180k you’d have $180k in your pocket and not 60
I would finance the G550. Thus, paying ~ $2K / month for the vehicle, to have an extra $60,000 in cash on hand today, instead of giving that same $60,000 to Uncle Sam today, all while having a nice car to drive that will decently hold some solid residual value. Does that extra info make you change your mind at all?
Make sure to check the recapture rules that apply after various ownership durations to understand how much of any sale proceeds will be taxed as ordinary income when you get rid of the vehicle. And keep records to prove all legitimate business use.
I don’t begin to know all the rules, but I do know this could get messy if you aren’t acting on solid advice on how to do this.
. You kill 2 birds one stone if the GLS is what she wants will drive.