Can I trade in my financed vehicle with negative equity for a lease?

Question

I have a 2006 financed vehicle and want to trade it and possibly lease....problem is..I hae negative equity..and quite a bit of it.(7-8k) I change my mind SO often when it comes to cars, thats my problem! So i figure a lease would be a good idea. How much negative equity can I move over to a lease on say a 30,000.00 vehicle-vs. what I would need to put down?

Answer 1

Yes, you absolutely CAN roll negative into a lease. You will need to find a vehicle with good residuals and rebates though. Some states also offer small tax savings when trading in, even on a lease. If you find a car with $3,000 rebate (which is considered a Cap Cost Reduction) and take an additional $2,500 of the selling price, your $7,500 negative just dropped to only $2,000. Leasing can be the #1 best way to get out of a situation such as yours. As far as money down, the lender may require some, but that depends on your credit and debt-to-income and so on.

Caution however, you need to make sure you get enough miles for because you will most likely need to keep the vehicle through the contracted term. I hope this helps......Good luck!

Answer 2

Negative Equity Calculator

Answer 3

If your credit is good, you can probably move as much negative equity as you want over to a lease. It will be calculated into your monthly payments. The amount you would need to put down varies greatly depending on the financier and the terms you negotiate.

Just note that you are not getting out of that negative equity you are just moving it into a payment plan.

Answer 4

Bite the bullet and live with your car... your upside down $7K they will tack that on the new car even a lease,,,, leases are bad.

I knew a kid years ago did what your doing had good credit so the bank just keep adding owed amounts to the new car he even started trading down to save money ended up owing $30K on a $7K car......

Get smart about buying a car, Really the best way to buy a car is save up a big down.... say $6K then go out and buy the best used car (from a private party) with the $6K then pay yourself $200 a month into a car fund ($200 is a cheep car payment) drive that new used car for 5 years it's still worth $2000 so you spent $4K for 5 years use, not bad buy a new $30K car and loose $6k driving it off the lot. OH and you have $10k+ setting in the bank from your cheep car payment (I even subtracted $2k from the car fund to pay for any thing the used car may have needed over the 5 years) Plus your insurance is going to be 1/2 of what a new car is.... you save all the way around...

NOW you have $10k to buy a nicer new used car... so up your car payment to $300 a month so in 5 years you will have over $15k to buy a better new used car.....

Do you realize how much a new car costs,,,, you just make others rich off your hard earned $$$$

Answer 5

I'm not sure if they will roll over that much negative equity onto a lease. Just know that if you go to the dealership and you try to work out the "trade in" they more than likely won't budge on the new car itself. Your best bet is to just wait it out for another year or two.

If you need a new car every year then a lease is your best option. GOOD LUCK!

Answer 6

Yes you can, but the lease payments are going to be sky high. Unless you can deduct the lease payments off of your income tax, this is not a wise move financially. I was in your situation a few years ago and was offered a lease on a new Chrysler Pacifica. The lease payments were close to $600 a month. In short, your lease payment will be what your car payment is.

Answer 7

You can't switch a negative equity over to a lease. But you could switch it over to another purchase.
If your going down the lease route, you need to pay of the difference between trade in value and loan amount, and then take out a lease on the full amount of the new vehicle.

Answer 8

Sadly, you would need a LARGE $$$$ amount out of pocket to get out of that loan you have now. That also assumes you have excellent credit like a FICO score over 720-ish.
The usual solution is to fall in love all over again with your current car.
Sometimes people start a career selling cars since SOME places will provide a vehicle from inventory and then sell it or rotate it to another vehicle from time to time.

Answer 9

Why dont you slow down and pay the car off. I am driving a 2001 car, its been paid for for years. I love not making silly axe car payments. Instead of making car payments, I am taking wonderful vacations. I have been to Mexico, Alaska, Rome, and many of the Carribean Islands. Its amazing what you can do, when you are not making 600 a month car payments.

Answer 10

I doubt it. Maybe if you sold the surplus vehicle privately & used the proceeds toward the buyout. But I have to wonder why you would consider paying a buyout that exceeds the value of the vehicle, just turn it in.