First off, I'd like to thank you so much for reading all of this and providing me with some guidance in my current situation.
Quick Synopsis: Had a 2019 BMW M5 that was about to lose warranty and it was right outside of the covid era. I decided to take a huge loss and traded the car in for another car in September of 2023. I rolled in 30k in Negative Equity (Terrible move, I know, but having a car like that without warranty was not going to allow me to sleep at night).
Fast forward to today, I hate the car I purchased and of course have been prepaying the loan considerable so I'm 22k upside down on the car for a trade towards a BMW M2 that I ordered that's estimated to be delivered to me in September of this year.
I came up with 2 plans and want to know what you guys think about these or if you can come up with a better idea. I'm in a financial situation where I can prepay the new loan by 5k a week for 5 weeks and "Pretrade" the car in at the dealership at a wash. (This helps with any future depreciation of this trade in and also stops any interest to continue accruing on the current loan. Then continue to put 3k a week away so this way I can pay for the BMW outright in September with no auto loan required. I could also make these deposits into a high yeild savings account at 4.5% APY (granted that'll only provide maybe $1k in interest by September?)
2nd option:
Continue to pay this loan 5k a week until the car is paid off and then trade it with equity for the BMW and add a few thousand upon purchase of the vehicle also resulting in no auto loan.
The thing that bothers be about this is the fact that I'll continue to accrue interest at 6% for this loan as I pay it down AND continue to pay for insurance on the car although I won't be using it and using my daily until delivery. Not to mention the car will probably lose another 3-4k due to it aging a bit more before trading it in.
I'm really lost on what I should be doing or how to handle this situation and the main goal is to be able to purchase the M2 without any loans or further payments. I have been on a road to absolutely no debt (Besides Mortgage) and I'm almost there. Can you please help me achieve this goal with some sound advice?
I appreciate the response. It looks like these really would be my only 2 options then. I was hoping I didn't think of something haha
I'm confused on how you're upside down on it if you can afford to pay 3-5k a week towards it. I mean, I know finances can change, but that would be a huge change. Lol
We would need to know loan balance as well as what you pay for insurance to attempt to maths. Even then it would just be a guess since we can't predict depreciation, especially right now when used vehicle prices are dropping.
Personally, I would lean towards option 1. But, there is another option. You could sell it privately once righting the loan. You would typically get more than if you traded it in. I toyed with the idea of selling my vehicle as I have another and putting my monthly payment, insurance, and registration aside to save up towards a Porsche.
It's not that my income has changed drastically, it was more that I was showered in Credit Card Debt (over 150k due to buying a new home and putting every dang thing on credit cards), granted a lot of it was interest free, however a lot of it wasn't. I finally got it under control and have 0 debt on credit cards, I put the auto loan on back burner since the rates were much lower than credit cards.
The issue with selling privately is losing the 7% tax credit on 52k trade in which is hard to makeup and isn't really worth the hassle of dealing with people lol.
The inital loan amount after being 30k upside down was 85k, current loan amount is 73k after starting to tackle the balance 2 weeks ago. The Interest rate is 6% and the value of the trade iss currently 52k.
The new vehicle purchase price out the door is 73k.
Thank you for responding and trying to help here 
Truly means a lot to me
I'm almost there and still kind of indecisive about what to do :/
For those that helped.
What I ended up doing. I paid down the loan to 53k and used a credit card for the 1k I was still upside down and pretraded the car. It really hurt to make huge payments like this, but it's done and finally behind me.
Until the next car comes I am officially debt free besides the mortgage . Now THAT feels good!
