I'm sure like many other dealers now. Our back Service lot is full of overflow on new cars so they lease great and you ditch all the negative when it's done
Sorry you were in the car business most people in that business have no life they work like 70 hours a week they work weekends and holidays. It’s a terrible terrible career.
Leasing is the car salesman’s dream because it keeps the customer continuously be paying. It is actually the most expensive way to have a vehicle. Buying a good used vehicle is a much smarter decision because it has already gone through the greatest depression. By putting yourself in a position of not being totally dependent on a vehicle you can have greater flexibility in getting a lower cost vehicle.
no its not. ive leased brand new cars for under $200 a month, put zero down, put zero into the car. I buy everything in cash except cars. I lease all of my cars. its significantly cheaper payment, no cost maintenance, its brand new, " i just buy my cars in cash"... congratulations, now you're cash broke, and you just lost 3-5k as soon as you pulled off the lot. the key to leasing is ZERO DOWN. if you put nothing down, you will never lose.
@@mikepalumbo7781im sorry but can you help me more on this.. i’m at the point right now to wear my car is about $2000 $3000 negative equity and I do want to get rid of it because it keeps breaking. It’s got a good warranty on it a 23 Hyundai Santa Fe Limited model car and I still owe about $1000 on the loan the car value about $28,000. How does this actually work do I go to the bank and ask for money or do I just sell the car out right or trade it in and then Lisa the car or what?
@@mikepalumbo7781At the end of the lease you have nothing. At the end of a loan, you have a title. If you took good care of the car, you can resell it and then use that cash as a down payment. A lease is just another way for the dealership to get you to stop thinking of the overall price of ownership and focus on the monthly payment which in the end makes them more money and consequently gets you to pay more money in the long run.
No my brother. Because you always end up going back to the dealer at some point. If you are retired and you only need your car to get your groceries maybe, but if you work and have a family and depend on your car, the best way is leasing. You just need to change your mentality and see the car as what it is unfortunately, no car and your life stops. Can't go to work and make money, can't move your family...Cut corners in other expenses so you can always drive a new car that is not going to have to be taken to the mechanic every 3 months. That is just my opinion.
@@coachv4712 Leasing is the most expensive way of buying vehicles and dealerships have the least skilled mechanics. Most people are better off buying used and reducing their dependency on driving in a way too car centric society. People are not obligated to forking over major money to car dealers for new vehicles with rapidly declining quality.
In most cases GAP covers the depreciation difference between what you owe and the actual value of the vehicle. It has limits on the amount of overfinance it will cover, ie if you pay 55k for a 45k vehicle it may not cover that 10k extra. It all depends on what gap coverage you get and it’s important to read it carefully.
The majority of people in this country are broke too. Play keep leasing vehicles, and I'll keep buying a 3-year-old off lease vehicle that is half the price that it was new, but still looks almost brand new, and then I'll drive it for 6 to 8 years completely paid off after 2 to 3 years.
Or… you could do some research and purchase a vehicle from a reliable car brand, stay on top of regular maintenance BEYOND changing the oil, and then hang on to the car until then end of the loan and you have POSSITIVE equity. Of course a car salesman doesn't want people to look at it this way because it means you'll sell less cars.
Honestly got myself into a bad car loan deal also a bad refinance deal but im just gonna pay it off take the loss and pass this car down to my kid so he wont deal with this bullshit
There are a few ways of looking at this. If you have negative eauity, keep it, pay it off and stop from paying payments. If you're they tyoe of person that feels they need a new car every two or three years then you should leasing anyway.
I did this some years ago, but the difference is that I fought with them for hours until they agreed to give me a reasonable price and 0 down and first month 0 also. So I got rid of my car that I still owed some $10k+ still and got something like $350/month for 3 or 5 years
Can’t roll negative equity into a used car because without money to cover the negative the bank won’t approve it. Dump it in a short term lease or something with . A cheap new car.
HELP!! I have a 2017 Hyundai elantra with 143,000 miles on it. I'm financing it with a whopping 11.99% interest rate (first time financing a car and yes I MESSED UP) I bought it for 12,000$ and been paying 491 a month for almost 2 years and it says I still owe 11,400$!!!!! This car keeps giving me problems and I want to trade it in and buy another newer car. I don't have 11,000$ to just pay this thing off or I would have. My credit was good before so how I got such a high interest rate I don't know. Since then my credit has gone up even more around 780. I'm looking at a 2021 Toyota with only 49,000 miles on it for 20,000$. My kbb value of my Hyundai is from 3-4,000$. So if I let them buy this thing for let's say 4,000 then the 11,000 will go down to 7,000 and the new car will be 27,000?! Does that even sound worth it?? (NOT DOING IT IF MY INTEREST RATE IS ANYWHERE NEAR THAT HIGH OBVIOUSLY)
You don’t complain about the forced obsolescence manufacturers are trying to push by making subpar vehicles if you have a flashy entertainment system! When they are selling cars not off performance or longevity, but instead off of touch screen radios, we have really screwed up our priorities
@@jonathanharvey5367 You won't have negative equity and you will still have a car if you keep your car until it is paid off and keep driving it long beyond that.
It doesn’t work. With lease deals being so expensive now it doesn’t make sense to roll over negative. You’re better off just keeping your car and fixing what is wrong. You’re gonna have a massive lease payment and you build zero equity. I looked into it myself and it just didn’t make sense to do
Then you end up paying more for the car you get payment, overall, high interest, and other things. And also however much negative equity you put roll over is gunna work against the car's depreciation over its life. I'm in that boat now. Trust me it sucks.
I was stuck in this situation through a lease. The best thing to do if you can't stomach making a major downgrade is by religiously saving to pay off the car. I did this, 6 yrs later I now have two paid off cars, one being a corvette (paid for by other investments, but that's a whole other story)
When you owe more on a car than it’s worth. Example: if the car is worth $20k, but you owe $25k on the loan, the $5k difference is the negative equity. That’s where some people get into a vicious cycle where they keep rolling negative equity into the next loan or lease.
I’m in a particular situation where I only have a few grand of negative equity. Would it be better to save the difference and use it as a down payment? Or just pay it towards my loan I already have?
@blaze376192 you pay for the negative equity in the lease (short term). At the end of the lease you turn in the car. Now you don't have a car or negative equity. I know this for fact I had to finance 5K more on my current car because of negative equity and I'm paying for it long term. A 21K car financed for 26k. I lost quite a bit of positive equity in this car because of that.
@jonathanharvey5367 your negative equity doesn't just go away. They make you pay for it in the term of the lease. Sameway how positive equity lower payments, negative equity increases payments
That's good advice, especially if you are the type of person that wants a new car every three years or so. I would say that if you plan on keeping the car for at least eight years, buy it.
This guy is no financial advisor. Leasing the most expensive way to get into a vehicle. Rolling negative equity is a myth. It simply means you owe even more. The best way out is to drive it until the wheels fall off.
Terrible advice. By doing this, you end up with higher payments to make up for the negative equity anyways. Your best option is to keep the car till its paid off, or make a major downgrade.
@@Lionsandtruth if you do your homework and buy something reliable, maintenance won't become an issue. My mom drives a 20+yr old camry and hasn't had a single issue with it. And the "maintenance cost" will never make up for the amount of money loss buying or leasing something new, unless you buy something ridiculous like a used range rover or Maserati.
@@blaze376192 Vehicles are a liability, they aren’t reliable n always require maintenance. Your anecdotal experience has no relevance to this video…the fact remains it’s simply best to lease when dealing with negative equity.
Obviously, if someone has been dating a Negative Equity, they can not and they will never afford that class of cars they always want to drive, so, Buy a cheap old Hondas or a Toyota and shut up !!! if you want a change, if not then shut up again !!!
Sold cars for 2-3years I'm a service advisor now. But have been in dealers for about 10 years. This is the best way to go
I'm sure like many other dealers now. Our back Service lot is full of overflow on new cars so they lease great and you ditch all the negative when it's done
I owe 39 on my car my cars worth on KBB is 32. Can i trade in for a car thats 35?
Sorry you were in the car business most people in that business have no life they work like 70 hours a week they work weekends and holidays. It’s a terrible terrible career.
Don’t let Dave Ramsey hear this one.
Go ask your barber if you need a haircut lol
Somewhere, Dave Ramsey is in the back of an ambulance rushing to a level one cardiac unit.
Literally laughed out loud at work like crazy. 😂😂
Leasing is the car salesman’s dream because it keeps the customer continuously be paying. It is actually the most expensive way to have a vehicle. Buying a good used vehicle is a much smarter decision because it has already gone through the greatest depression. By putting yourself in a position of not being totally dependent on a vehicle you can have greater flexibility in getting a lower cost vehicle.
no its not. ive leased brand new cars for under $200 a month, put zero down, put zero into the car. I buy everything in cash except cars. I lease all of my cars. its significantly cheaper payment, no cost maintenance, its brand new, " i just buy my cars in cash"... congratulations, now you're cash broke, and you just lost 3-5k as soon as you pulled off the lot. the key to leasing is ZERO DOWN. if you put nothing down, you will never lose.
@@mikepalumbo7781im sorry but can you help me more on this..
i’m at the point right now to wear my car is about $2000 $3000 negative equity and I do want to get rid of it because it keeps breaking. It’s got a good warranty on it a 23 Hyundai Santa Fe Limited model car and I still owe about $1000 on the loan the car value about $28,000. How does this actually work do I go to the bank and ask for money or do I just sell the car out right or trade it in and then Lisa the car or what?
@@mikepalumbo7781At the end of the lease you have nothing. At the end of a loan, you have a title. If you took good care of the car, you can resell it and then use that cash as a down payment. A lease is just another way for the dealership to get you to stop thinking of the overall price of ownership and focus on the monthly payment which in the end makes them more money and consequently gets you to pay more money in the long run.
No my brother. Because you always end up going back to the dealer at some point. If you are retired and you only need your car to get your groceries maybe, but if you work and have a family and depend on your car, the best way is leasing. You just need to change your mentality and see the car as what it is unfortunately, no car and your life stops. Can't go to work and make money, can't move your family...Cut corners in other expenses so you can always drive a new car that is not going to have to be taken to the mechanic every 3 months. That is just my opinion.
@@coachv4712 Leasing is the most expensive way of buying vehicles and dealerships have the least skilled mechanics. Most people are better off buying used and reducing their dependency on driving in a way too car centric society. People are not obligated to forking over major money to car dealers for new vehicles with rapidly declining quality.
Have GAP insurance and wrap it around a tree
No debt, but you’ll be dead.
based af
That’s how I got out of my Audi S5 🤣😭😭
But then your insurance rates go up. Better make sure there's an at fault driver to pin the insurance bill on
In most cases GAP covers the depreciation difference between what you owe and the actual value of the vehicle. It has limits on the amount of overfinance it will cover, ie if you pay 55k for a 45k vehicle it may not cover that 10k extra. It all depends on what gap coverage you get and it’s important to read it carefully.
Most people trade their car in every 3-4 years probably, so leasing is a great option for the majority of people.
The majority of people in this country are broke too.
Play keep leasing vehicles, and I'll keep buying a 3-year-old off lease vehicle that is half the price that it was new, but still looks almost brand new, and then I'll drive it for 6 to 8 years completely paid off after 2 to 3 years.
those days are over
That's the best way to stay broke for the majority of people.
Smart thing is to not have negative equity in the first place
Also what you could do is buy a Honda used for 10k and drive it for 10 years like I have lol. Also do next to none maintenance because it’s a honda
But you have an old car?? Here you got rid of negative equity and you got a nice new car
@@aster22380 buying a new car is the worst possible investment you can make it’ll lose 40% of its value in 3 years
I bought an odyssey for my wife and it’s been the worst car I’ve ever owned so not all Hondas are great
not everyone wants to drive an old honda tho lol
@aster22380 and you're still broke because at the end you own nothing.
Or… you could do some research and purchase a vehicle from a reliable car brand, stay on top of regular maintenance BEYOND changing the oil, and then hang on to the car until then end of the loan and you have POSSITIVE equity. Of course a car salesman doesn't want people to look at it this way because it means you'll sell less cars.
This is the most honest salesman/ friend to the public out there. No going wrong buying here ever!!!
Honestly got myself into a bad car loan deal also a bad refinance deal but im just gonna pay it off take the loss and pass this car down to my kid so he wont deal with this bullshit
There are a few ways of looking at this. If you have negative eauity, keep it, pay it off and stop from paying payments. If you're they tyoe of person that feels they need a new car every two or three years then you should leasing anyway.
Ok I wish that would work but sadly if you don’t have an AWESOME credit that formula doesn’t work I tried..
I did this some years ago, but the difference is that I fought with them for hours until they agreed to give me a reasonable price and 0 down and first month 0 also. So I got rid of my car that I still owed some $10k+ still and got something like $350/month for 3 or 5 years
How you got rid of the car you stilled owed on ? Traded it in for something cheaper ?
@@jamesedwards794 it was a lease, but they wanted me to put down somewhere between $6k and $10k. I had good credit so that def helped
A car salesman giving financial advice on buying cars when you are upside down in a car all ready……. Lmao
Just buy a used car.
Can’t roll negative equity into a used car because without money to cover the negative the bank won’t approve it. Dump it in a short term lease or something with . A cheap new car.
You can still finance or get a loan for a used car
@@FleeceJohnsonDaBootyWarrioryeah especially certified pre owned
I’m in that same boat with my Tesla - over saturation of the market killed me and now my car is worth half of what I bought it for 😑
It's an EV you should have seen that coming a mile away.
Spoken like a true car salesman.
Bro that’s some next level shit 😂
HELP!! I have a 2017 Hyundai elantra with 143,000 miles on it. I'm financing it with a whopping 11.99% interest rate (first time financing a car and yes I MESSED UP) I bought it for 12,000$ and been paying 491 a month for almost 2 years and it says I still owe 11,400$!!!!! This car keeps giving me problems and I want to trade it in and buy another newer car. I don't have 11,000$ to just pay this thing off or I would have. My credit was good before so how I got such a high interest rate I don't know. Since then my credit has gone up even more around 780. I'm looking at a 2021 Toyota with only 49,000 miles on it for 20,000$. My kbb value of my Hyundai is from 3-4,000$. So if I let them buy this thing for let's say 4,000 then the 11,000 will go down to 7,000 and the new car will be 27,000?! Does that even sound worth it?? (NOT DOING IT IF MY INTEREST RATE IS ANYWHERE NEAR THAT HIGH OBVIOUSLY)
Why not just keep the car you got?
Lease is a fleece
A 48 inch iPad dash has to be the worst feature in the history of cars. Why? Just fuckin why?
You don’t complain about the forced obsolescence manufacturers are trying to push by making subpar vehicles if you have a flashy entertainment system!
When they are selling cars not off performance or longevity, but instead off of touch screen radios, we have really screwed up our priorities
@@coalcountry6795 agreed.
Don’t do it! Drive it until the wheels fall off!
what if the car needs repairs costing half of what ur remaining balance is
Just.keep your car until it is paid off. Duh.
Define a little bit of money down
2023 new car with 10k off?! Do you sell to Los Angeles customers?
You also have no car so you have to start over again.
Without any negative equity. Which won't screw you over
@@jonathanharvey5367 You won't have negative equity and you will still have a car if you keep your car until it is paid off and keep driving it long beyond that.
@@jonathanharvey5367if you finance a car, no matter what your going to have negative equity. Until that last year
I don't plan on buying anything over like 2005
It doesn’t work. With lease deals being so expensive now it doesn’t make sense to roll over negative. You’re better off just keeping your car and fixing what is wrong. You’re gonna have a massive lease payment and you build zero equity. I looked into it myself and it just didn’t make sense to do
What if you don’t want to lease it but still have negative equity?
Then you end up paying more for the car you get payment, overall, high interest, and other things. And also however much negative equity you put roll over is gunna work against the car's depreciation over its life. I'm in that boat now. Trust me it sucks.
Yeah same here. I just don’t want to lease due to the miles I put on.
I was stuck in this situation through a lease. The best thing to do if you can't stomach making a major downgrade is by religiously saving to pay off the car. I did this, 6 yrs later I now have two paid off cars, one being a corvette (paid for by other investments, but that's a whole other story)
Just pay off the car you have. Then sell it and buy a used car you can afford.
What's negative equity
When you owe more on a car than it’s worth. Example: if the car is worth $20k, but you owe $25k on the loan, the $5k difference is the negative equity. That’s where some people get into a vicious cycle where they keep rolling negative equity into the next loan or lease.
How’d you even get here cuz. TH-cam on another one
Challenge accepted I can't find anywhere
I’m in a particular situation where I only have a few grand of negative equity. Would it be better to save the difference and use it as a down payment? Or just pay it towards my loan I already have?
Just pay it off yes
ive said this for years!
Russ looks so handsome
What if I am 6k negative what should I do since I don't like my car
Pay it off. Then sell it and buy a used car you can actually afford.
how much is a little bit of money ? lol
Lease the vehicle…get out of negative equity..and at the end of the lease…you have nothing to show for it…lmao
But you won't have negative equity. And should be able to negotiate a better deal for yourself.
0 > negative
@jonathanharvey5367 you still end up paying for it in the payments
@blaze376192 you pay for the negative equity in the lease (short term). At the end of the lease you turn in the car. Now you don't have a car or negative equity.
I know this for fact I had to finance 5K more on my current car because of negative equity and I'm paying for it long term. A 21K car financed for 26k. I lost quite a bit of positive equity in this car because of that.
@jonathanharvey5367 your negative equity doesn't just go away. They make you pay for it in the term of the lease. Sameway how positive equity lower payments, negative equity increases payments
if you lease it, you will be leasing forever, no thx
Spoken like a true dirtbag dealer.
How about keeping what you have , paying down the loan, and stop making stupid money mistakes...
When expensive maintenance become a nuisance it’s best to trade in n lease.
@Lionsandtruth agreed, to a point. Most people buy a car because they want one, not because they need 1 in most cases...
@@sshady7272 The better option whether want/need is to lease.
move to India and ride a bike
That's good advice, especially if you are the type of person that wants a new car every three years or so.
I would say that if you plan on keeping the car for at least eight years, buy it.
This guy is no financial advisor. Leasing the most expensive way to get into a vehicle. Rolling negative equity is a myth. It simply means you owe even more. The best way out is to drive it until the wheels fall off.
Terrible advice. By doing this, you end up with higher payments to make up for the negative equity anyways. Your best option is to keep the car till its paid off, or make a major downgrade.
Ideally yes but when maintenance becomes a nuisance it’s smart to trade the vehicle in n lease something new.
@@Lionsandtruth if you do your homework and buy something reliable, maintenance won't become an issue. My mom drives a 20+yr old camry and hasn't had a single issue with it. And the "maintenance cost" will never make up for the amount of money loss buying or leasing something new, unless you buy something ridiculous like a used range rover or Maserati.
@@blaze376192 Vehicles are a liability, they aren’t reliable n always require maintenance. Your anecdotal experience has no relevance to this video…the fact remains it’s simply best to lease when dealing with negative equity.
Obviously, if someone has been dating a Negative Equity, they can not and they will never afford that class of cars they always want to drive, so, Buy a cheap old Hondas or a Toyota and shut up !!! if you want a change, if not then shut up again !!!
Giving people the worst advice. Buy a used car for cash