I understand negative equity, BUT can NOT wrap my obviously small brain around your explanation! You have a gift, my friend! Oh, here in NY, Toyota is playing SAVAGE games. Done with them 👎🏼
Kate B oo, I’ve heard the ridiculous horror stories of rolling leases. Some as high as $45k!!! Can’t imagine people have been doing this insane “game”. It as Ari’s breakdown with money factor that made my mind 🤯
Kate B you are GREAT at finance ‘splaining 😂! I should have mentioned been “leasing” forever and just went through the process with Subaru in November 🙄. It’s killer, some of Ari’s insight inspired even more then I’ve used in the passed. My husband just sits there and let’s me do the talking....which is minimal. Not a fool though, the dealership still “wins”. #mywayorthehighway
This is pretty much my current situation when my credit wasn’t so great I bought a car last year to commute to work and its worth maybe $3k but I owe $11k not to mention the interest is about 24%. But today my fico auto score is 727 and I’m ready to get rid of this car ASAP! I’ll try to learn more from your videos before I make a move!
Hey man, a good idea would be applying for a personal loan (shop around online for rates but I’m sure they’re better than 24%) once you do that you own the car now. Sell it or trade it in on a lease.
I’m literally in the same situation, just at a higher price. My car is only worth around 8,000, but I owe $16,000 and my interest rate is 21%!!! How did things go for you? Did you trade your vehicle in? Did you keep your the vehicle n pay it off?? I hate my car, it’s got problems, and I’ve had it for about 9 months. My credit is around 640-720 (depending on the credit score calculator I check lol) and I want to try n get something else that suits me better with less issues
@@samijo_bb I actually followed the tips on this channel and used to site he recommended to find out my actual fico scores then applied the lease calculator tips I found on RUclips(finding out the money factor, residual value, & any discounts/incentives via edmunds lease forums on Google) I was super nervous of course 😂 but it was all accurate and worked! I traded my old car in for a brand new 2021 model and it was the best decision I’ve made no more worrying about breaking down and shelling out money for a car that won’t drive. I even helped my GF get a good deal on her 2022 CR-V with the same lease method. I say go for it!
@@roundtrip385 I have been making my payments, and waiting for the end of the year sales at the dealerships to try and see if I can trade my vehicle in on a newer model. I don’t think a lease will be for me, just because I’m worried about all this negative equity, and the payments will be as high as if I finance. I watch YAA and get tips on how to deal with dealerships and pricing… I hope you can figure things out, because I’m too dumb to give any advice on how to deal with any of it 😂
MUST get gap on the personal loan option. Lease is built in. I’ve seen several clients total vehicles shortly after rolling in significant negative equity on a lease and the upside is it gets wiped away instantly!
What's up Ari?! Great info! I've only rolled negative equity once. When I traded in my ex-wife's car in, and the reason I even leased my first car... 24 years ago. I've leased ever since. Here's a question though. What happens if you total the car, let's say in the first 3 months? Are the banks going to allow you to use the built in gap insurance to cover all of that? I'm not a shady dude... But if I was... This would be a great ploy!
I wanted your opinion. So I’m upside down more than 10k. Closer to 15k. Dumb mistakes that led to this. I’ve been looking into getting back into a VW GTI. The car I had that I had paid off an than traded in which ended up leading to this. My payments now are $554 on a ‘17 Malibu at the moment. I’m looking at payments no more than $600. VW are expensive. So I hear a more expensive car your more likely to get rebates off that will eat the negative equity. So with 1K down in a new GTI would be $629. I told them i can’t pay anymore than $600. It’s a 31k car. And add about 15k. Is it possible? I know I’d be dumb getting into a 50k VW. Just wanted your opinion. I left it saying I’ll keep my car till it’s paid off. Do I want to, no. But if I have to. When is a good time to look back into getting a new car? Is December a good time? This dealership I spoke to said their giving me the best deal paying 28k for it. But the payments are too high. Am I living a pipe dream? I’d love your opinion and advice.
@@penvon All the paperwork was done through email. I put $3k down. I was able to get what I was willing to pay. The dealership to me went above and beyond. It was almost 2 hours away from me. Apparently their was a recall the day after I got it 😩 so they sent someone out to pick it up. Let me use a rental and dropped it off to me later that day.
@@SCRFCE215 so you rolled 15k negative equity into another lease? This is my exact situation. Do you think it would be possible to do if I traded in my vehicle for a Tesla? Like model y performance or something like that? Or does it have to be specific vehicles that work well with all the negative equity?
Ari, I have positive equity on my 2017 Fiat 500 Abarth. I have 6 months left on my lease and it’s through US Bank. I called the bank and told me my buyout is the sum of the residual value in my contract $8940 plus 6 months payment @ $269 month plus tax . They told me that’s my buyout and not a dealers . Why would dealers be different and is there price higher or lower. I’m interested in a VW Gti se. How would I best go about trading in to capture most of the equity I have in my fiat . Seems like certified fiat 500 abarth are selling for $14-15k. My car is in excellent condition with 19k miles and dealer maintained.
Hey Ari, I am looking into leasing a mazda 6 grand touring but have a question. I have pretty decent credit at around 715 but have never had a car loan before. I have no bad marks on my credit and have 6 years of good credit. Ive heard mazda is fairly strict with leasing, is this true? Do i even have a chance of leasing a mazda 6 or should i look more at the 2020 accord/sonata?
hi Ari i need sum help i wanna get a 2019 or 2020 acura mdxwith technology debating on all wheel drive I'm trying to break a lease on a chevy tahoe what should i use a 10% discount on MSRP or shoot higher also should i lease or purchase please help me with this i would greatly apprecite it sir thanks for all the awesome content you put out also the info really helps Happy Holidays!
Anybody who is rolling 10k negative equity just means their not ready to go into another car...They should be worrying about keeping the car for a couple more years ,saving some money,and stop worrying about running with the Jones...IMO
@@razzik777 Thats fine also ,i know plenty if people with cars they cant afford or years of negative equity continuously rolled into each new car ,and they also dont have 2 nickels to rub together outside their cars that are drowning them
Some people just need a bigger or better car because their family is growing. When we purchased our VW Passat, it was just me, my husband and 2 preteens. Now we have a Cane Corso (130lb dog) and a newborn. We need a bigger vehicle that is dependable.
Unless they got into a bad deal to begin with and the vehicle is on its last leg and they have no choice but to try and get into something better or else they’ll be stuck with a paper weight. Everyone’s circumstances are different so donate be quick to assume!
What if the motor blew twice and I replaced it twice? And it’s a 2017 Lexus RX 350. (Toyota 3.5L V6) And I owe 19 K on it. so if we’re keeping score that two motors replaced parts and labor about 5000 each. Just curious on the worlds thoughts of my personal Shit show lol
Thanks for the video. I have a question Ari, when does the details of a personal loan as far as the amount, payment etc... show up on the 3 credit reporting agencies reports and affect the FICO score ? I know the hard inquiry points come off your FICO score instantly but I need to know when the details of the personal show up so the car finance department doesn’t see it till after the deal is done. The reason for my question is that I’m thinking of taking out a personal loan because I’m moving so the loan will help with the expense , pay off a credit card and that’s it but if the dealerships see’s that I just took out a personal loan they can deny me even though my credit score is in the very good category.
Kate B The debt you’re speaking of is the debt that only shows up on the credit bureaus report agencies? Monthly payments or ?? If it’s the total debt amount and not the payment than I don’t see how people low apr auto lease loans.
Maybe I could get your opinion or someone else who might have the answer. I have an auto loan where the approx payoff balance is $36K but the value is $22K (giving me a $14K negative equity difference) and my monthly payment is $628, instead of looking at say entry compact car or crossover I would have to look at a vehicle thats above $50K to be able to rollover the balance into the lease if it's above the $10K? Or what price range of vehicle would I fit best to inquire about?
In the last 4 months have you done anything about your situation? I’m in a similar one. I have a loan out right now for 80k. I went and canceled warranties from the dealership so it should go down to around 75K eventually. My truck is worth about 60k at Carmax. I was hoping I could just roll the negative 15k into a lease for a Tesla.
@@sunny051488 right, I realize that. That's the point I'm making in two sentences that instead took Ari 10 minutes to make, and he didn't even do so clearly
You can roll anything into a lease. The dealership would just have to discount to offset the negative. For example maybe the dealer is motivated to move a new previous model year 2022 vehicle. So they offer a lease option in which the adjusted price has a 5k dealer discount and additional 5k manufacturer rebates. Now you roll in your $10k negative equity and you are back at msrp. And easily within ltv for a $0 downpayment lease.
I understand negative equity, BUT can NOT wrap my obviously small brain around your explanation!
You have a gift, my friend!
Oh, here in NY, Toyota is playing SAVAGE games. Done with them 👎🏼
Kate B oo, I’ve heard the ridiculous horror stories of rolling leases. Some as high as $45k!!!
Can’t imagine people have been doing this insane “game”.
It as Ari’s breakdown with money factor that made my mind 🤯
Kate B you are GREAT at finance ‘splaining 😂! I should have mentioned been “leasing” forever and just went through the process with Subaru in November 🙄. It’s killer, some of Ari’s insight inspired even more then I’ve used in the passed. My husband just sits there and let’s me do the talking....which is minimal. Not a fool though, the dealership still “wins”.
#mywayorthehighway
This is pretty much my current situation when my credit wasn’t so great I bought a car last year to commute to work and its worth maybe $3k but I owe $11k not to mention the interest is about 24%. But today my fico auto score is 727 and I’m ready to get rid of this car ASAP! I’ll try to learn more from your videos before I make a move!
Hey man, a good idea would be applying for a personal loan (shop around online for rates but I’m sure they’re better than 24%) once you do that you own the car now. Sell it or trade it in on a lease.
I’m literally in the same situation, just at a higher price. My car is only worth around 8,000, but I owe $16,000 and my interest rate is 21%!!! How did things go for you? Did you trade your vehicle in? Did you keep your the vehicle n pay it off?? I hate my car, it’s got problems, and I’ve had it for about 9 months. My credit is around 640-720 (depending on the credit score calculator I check lol) and I want to try n get something else that suits me better with less issues
@@samijo_bb I actually followed the tips on this channel and used to site he recommended to find out my actual fico scores then applied the lease calculator tips I found on RUclips(finding out the money factor, residual value, & any discounts/incentives via edmunds lease forums on Google) I was super nervous of course 😂 but it was all accurate and worked! I traded my old car in for a brand new 2021 model and it was the best decision I’ve made no more worrying about breaking down and shelling out money for a car that won’t drive. I even helped my GF get a good deal on her 2022 CR-V with the same lease method. I say go for it!
@@samijo_bb In the exact same boat pricing and all. What did you do?
@@roundtrip385 I have been making my payments, and waiting for the end of the year sales at the dealerships to try and see if I can trade my vehicle in on a newer model. I don’t think a lease will be for me, just because I’m worried about all this negative equity, and the payments will be as high as if I finance. I watch YAA and get tips on how to deal with dealerships and pricing… I hope you can figure things out, because I’m too dumb to give any advice on how to deal with any of it 😂
MUST get gap on the personal loan option. Lease is built in. I’ve seen several clients total vehicles shortly after rolling in significant negative equity on a lease and the upside is it gets wiped away instantly!
Lol if I traded in my 440i lease rn I would have 10k of negative equity nice vid and def keeping the 440i or putting it on swapalease
@skbuoy yep enjoy them new
What's up Ari?!
Great info!
I've only rolled negative equity once. When I traded in my ex-wife's car in, and the reason I even leased my first car... 24 years ago. I've leased ever since.
Here's a question though.
What happens if you total the car, let's say in the first 3 months? Are the banks going to allow you to use the built in gap insurance to cover all of that?
I'm not a shady dude... But if I was... This would be a great ploy!
Great content Ari!
I wanted your opinion. So I’m upside down more than 10k. Closer to 15k. Dumb mistakes that led to this. I’ve been looking into getting back into a VW GTI. The car I had that I had paid off an than traded in which ended up leading to this. My payments now are $554 on a ‘17 Malibu at the moment. I’m looking at payments no more than $600. VW are expensive. So I hear a more expensive car your more likely to get rebates off that will eat the negative equity. So with 1K down in a new GTI would be $629. I told them i can’t pay anymore than $600. It’s a 31k car. And add about 15k. Is it possible? I know I’d be dumb getting into a 50k VW. Just wanted your opinion. I left it saying I’ll keep my car till it’s paid off. Do I want to, no. But if I have to. When is a good time to look back into getting a new car? Is December a good time? This dealership I spoke to said their giving me the best deal paying 28k for it. But the payments are too high. Am I living a pipe dream? I’d love your opinion and advice.
Did you get the VW?
@@penvon yup. Next week will be a year since I got it.
@@SCRFCE215 How did the process work out to get it? Like how much did you put down & such.
@@penvon All the paperwork was done through email. I put $3k down. I was able to get what I was willing to pay. The dealership to me went above and beyond. It was almost 2 hours away from me. Apparently their was a recall the day after I got it 😩 so they sent someone out to pick it up. Let me use a rental and dropped it off to me later that day.
@@SCRFCE215 so you rolled 15k negative equity into another lease? This is my exact situation. Do you think it would be possible to do if I traded in my vehicle for a Tesla? Like model y performance or something like that? Or does it have to be specific vehicles that work well with all the negative equity?
Ari, I have positive equity on my 2017 Fiat 500 Abarth. I have 6 months left on my lease and it’s through US Bank. I called the bank and told me my buyout is the sum of the residual value in my contract $8940 plus 6 months payment @ $269 month plus tax . They told me that’s my buyout and not a dealers . Why would dealers be different and is there price higher or lower. I’m interested in a VW Gti se.
How would I best go about trading in to capture most of the equity I have in my fiat . Seems like certified fiat 500 abarth are selling for $14-15k. My car is in excellent condition with 19k miles and dealer maintained.
I’m curious if anyone understood what this guy was saying?? 😮I’m lost
Please use a white board. It’s hard for me to process auditory information only
Hey Ari, I am looking into leasing a mazda 6 grand touring but have a question. I have pretty decent credit at around 715 but have never had a car loan before. I have no bad marks on my credit and have 6 years of good credit. Ive heard mazda is fairly strict with leasing, is this true? Do i even have a chance of leasing a mazda 6 or should i look more at the 2020 accord/sonata?
Can you do a video on S560 AMG
hi Ari i need sum help i wanna get a 2019 or 2020 acura mdxwith technology debating on all wheel drive I'm trying to break a lease on a chevy tahoe what should i use a 10% discount on MSRP or shoot higher also should i lease or purchase please help me with this i would greatly apprecite it sir thanks for all the awesome content you put out also the info really helps Happy Holidays!
Anybody who is rolling 10k negative equity just means their not ready to go into another car...They should be worrying about keeping the car for a couple more years ,saving some money,and stop worrying about running with the Jones...IMO
But thats boring! and we want good cars ! YOLO
@@razzik777 Thats fine also ,i know plenty if people with cars they cant afford or years of negative equity continuously rolled into each new car ,and they also dont have 2 nickels to rub together outside their cars that are drowning them
Some people just need a bigger or better car because their family is growing. When we purchased our VW Passat, it was just me, my husband and 2 preteens. Now we have a Cane Corso (130lb dog) and a newborn. We need a bigger vehicle that is dependable.
Unless they got into a bad deal to begin with and the vehicle is on its last leg and they have no choice but to try and get into something better or else they’ll be stuck with a paper weight. Everyone’s circumstances are different so donate be quick to assume!
What if the motor blew twice and I replaced it twice? And it’s a 2017 Lexus RX 350. (Toyota 3.5L V6) And I owe 19 K on it. so if we’re keeping score that two motors replaced parts and labor about 5000 each. Just curious on the worlds thoughts of my personal Shit show lol
Thanks for the video. I have a question Ari, when does the details of a personal loan as far as the amount, payment etc... show up on the 3 credit reporting agencies reports and affect the FICO score ? I know the hard inquiry points come off your FICO score instantly but I need to know when the details of the personal show up so the car finance department doesn’t see it till after the deal is done. The reason for my question is that I’m thinking of taking out a personal loan because I’m moving so the loan will help with the expense , pay off a credit card and that’s it but if the dealerships see’s that I just took out a personal loan they can deny me even though my credit score is in the very good category.
Kate B The debt you’re speaking of is the debt that only shows up on the credit bureaus report agencies? Monthly payments or ?? If it’s the total debt amount and not the payment than I don’t see how people low apr auto lease loans.
Will dealership roll your negative equity even if you use your own bank or cu?
Maybe I could get your opinion or someone else who might have the answer. I have an auto loan where the approx payoff balance is $36K but the value is $22K (giving me a $14K negative equity difference) and my monthly payment is $628, instead of looking at say entry compact car or crossover I would have to look at a vehicle thats above $50K to be able to rollover the balance into the lease if it's above the $10K? Or what price range of vehicle would I fit best to inquire about?
Will make a video on this shortly for you
Is it wise to get a personal loan for 20k to get out of a 84 month auto loan of 88k? Then lease? My current auto is 15k upside down and I owe 88k.
In the last 4 months have you done anything about your situation? I’m in a similar one. I have a loan out right now for 80k. I went and canceled warranties from the dealership so it should go down to around 75K eventually. My truck is worth about 60k at Carmax. I was hoping I could just roll the negative 15k into a lease for a Tesla.
@@jamesadkinsiii7925 I rolled the negative into a lease. Now I’m out of the negative and went from 84 months paying to 24 months
@@itguru2037 about how much more did your payment go up on the lease by rolling in that 15k negative equity?
I’m interested in knowing the answer to this question too ^
@@xo_alexaamarie3898 it went down
I've never been more confused. The short and easy answer is that it makes the payment higher
We’re not talking about the payment. We’re talking about interest on the negative equity.
@@negotiationguides either way the payment is going to be higher. Right?
David Kurtzbach the payment will always be higher when you roll in negative equity into a new lease.
@@sunny051488 right, I realize that. That's the point I'm making in two sentences that instead took Ari 10 minutes to make, and he didn't even do so clearly
David Kurtzbach he was more focused on weighing the options of rolling it into the lease or outside of a lease and on your own via a loan.
Usually you can’t roll 10k on a lease I think
You can roll anything into a lease. The dealership would just have to discount to offset the negative. For example maybe the dealer is motivated to move a new previous model year 2022 vehicle. So they offer a lease option in which the adjusted price has a 5k dealer discount and additional 5k manufacturer rebates. Now you roll in your $10k negative equity and you are back at msrp. And easily within ltv for a $0 downpayment lease.