@vtguy25 wrote:
Alright I wanted to refi my current loan but that doesn't look like that's an option after talking to many banks and credit unions, so I think I am going to bite the bullet and get a new car I am thinking that a lease would be the best option for the next three years or so. I am VERY upside down but I am paying 20.99% on the loan that I have now and it just isn't an option anymore I am throwing away money like crazy. So I want to lease get rid of the negitive equity and be done but who has the best rates for leases for someone with a year old BK. I have a year perfect payments on my current car loan and two credit cards with short history. I am not looking to lease anything crazy something modist like a subrau or nissan altima or chrysler 200 or mazda 3 or 6 something around the 20k mark. I owe 12600 on my car I would be lucky to get 8k in trade.and that would be quite a stretch. I just want to know what people have experinced and any advice because I don't want to be throwing all this money towards a loan for the next 5 years for a car that I don't really even like.
Ok, so the best way out of negative equity is a combination of cash and selling the vehicle retail rather than trading it wholesale. On a lease there are more places for the dealer to trick you into paying more. If your neg equity is $4600 (per your post above), they could easily increase the negative equity several thousand dollars.
So minimize your negative equity by selling it yourself and bringing cash to the closing.
Then if you want to rent something you aren't rolling thousands of dollars of neg equity into a lease. See you pay for it anyway - its just a matter of how the payments are structured. The negative equity doesn't go away.
