Hey Scotty, is doing a lease trade-in on a vehicle a good way to pay off negative equity? I’ve been wanting to get rid of my car for a while now.
trade-in on a vehicle (...) I’ve been wanting to get rid of my car for a while now.
The 30 year old Buick Regal?
If so probably not, as far as I know, a 30 year old Buick is worth maybe a thousand bucks.
lease
Realize that when you're leasing you're usually buying someone else a car,
Unless you find a lease that's significantly cheaper than what it would cost to buy the car.
for example scotty had a video where he did say that a $210 lease $26k car with questionable reliability is a good deal.
Sorry I didn’t elaborate much. No not for the Buick, that’s currently my work car so I don’t rack miles on my current vehicle. I was talking about my current vehicle I have with an auto loan with. I’ve heard good and bad about trade-in leasing but would like to hear it from more trusted experienced people on here like you guys. But thanks for that link, I’m going to check it out. It seems to be a good idea but don’t want sometimes to turn out to be “too good to be true” sort of speak.
What's the amount of negative equity?
What's the trade in value?
What's the lease cost?
Can you elaborate a bit? Are you saying that you have negative equity on your current loan and want to trade it in to a lease a car? Or are you leasing now (payoff number more than trade in value) and want to lease another?
Either way, I guess it depends on how much (if any) of your obligation the dealer is willing to pay off to get you in another lease. Am I not understanding?
Yes, Negative Equity on my current loan now. Sorry I didn’t elaborate much. I suppose depending on what the dealer would give, but I suppose was wondering if it was a good idea to pay off the negative equity on the current loan after a trade in leasing a vehicle.
If you want to avoid negative equity, you have to lease a car the dealer will “pay” you to take off his hands. Look for a 2022 model that is maybe less desirable. Anything you lease at MSRP+ equivalent just puts you in more negative equity.
But honestly, the right thing to do is make payments until you are right side up, then make a change.