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Upside Down Loan Payoff - Then Trade In for Lease

dandrnbrgrdandrnbrgr Member Posts: 3
edited February 2021 in Audi
Current Vehicle: 2011 Audi Q5 - currently owe $5500, trade-in value at dealership $4500

Lease Deal from Dealer:
2021 Audi Q5 Premium +
36 MOS - 12K/Yr
MSRP $48,815
SALE PRICE $47,315
Residual 55%
MF .00085
MONTHLY PAYMENT: $615.40

QUESTIONS:
1. What's the best way to deal with my current vehicle? Trade in and apply the value?
2. Is this a good deal? I pushed for a better sale price, she said they can't do anything more, this model is too high in demand.

Thanks for your feedback!

DD

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    MichaellMichaell Moderator Posts: 241,336
    Answer ✓
    dandrnbrgr said:

    I understand your point and thank you very much for the feedback, but what other options do I have with this upside down vehicle?

    1. Keep it and work to eliminate the negative equity
    2. Trade it in on a new vehicle and roll the negative equity into the deal

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    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

Answers

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    MichaellMichaell Moderator Posts: 241,336
    dandrnbrgr said:

    Current Vehicle: 2011 Audi Q5 - currently owe $5500, trade-in value at dealership $4500

    Lease Deal from Dealer:
    2021 Audi Q5 Premium +
    36 MOS - 12K/Yr
    MSRP $48,815
    SALE PRICE $47,315
    Residual 55%
    MF .00085
    MONTHLY PAYMENT: $615.40

    QUESTIONS:
    1. What's the best way to deal with my current vehicle? Trade in and apply the value?
    2. Is this a good deal? I pushed for a better sale price, she said they can't do anything more, this model is too high in demand.

    Thanks for your feedback!

    DD

    What is your location?
    How much is due at signing?

    Have you shopped multiple dealers to know that this is the best price you can get?

    The $1000 of negative equity will add about $30/mo to any lease payment. Any chance you can keep driving it until the negative equity is gone?

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

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    dandrnbrgrdandrnbrgr Member Posts: 3
    Louisville, KY
    $0 due at signing
    In the process of shopping other dealers, but I see several other deals online where discounts are 10%+ Local dealer says they would lose money at 6%.
    My plan was to pay off the loan completely before I do any deal.
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    MichaellMichaell Moderator Posts: 241,336
    dandrnbrgr said:

    Louisville, KY
    $0 due at signing
    In the process of shopping other dealers, but I see several other deals online where discounts are 10%+ Local dealer says they would lose money at 6%.
    My plan was to pay off the loan completely before I do any deal.

    So, you'll spend $5500 from your own pocket to get $4500 worth of equity on the lease deal?

    We don't recommend using trade equity in that manner - if the new car is stolen or totaled, you'd lose all that up front money.

    Make sure the prices you see are valid if you choose to lease, rather than buy.

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

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    dandrnbrgrdandrnbrgr Member Posts: 3
    I understand your point and thank you very much for the feedback, but what other options do I have with this upside down vehicle?
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