How is negative equity calculated?
03-21-16, 10:49 AM
#1
Lead Lap
Thread Starter
How is negative equity calculated?
I just had a question regarding negative equity and how it works. Wasn't able to get an exact answer on google, just a lot of upside down, under water kind of statements.
Also I was just asking because when i got the RC revalued they said I was at negative equity of 8,000 and I was just alarmed :/.
Thank you guys for always taking the time to explain and teach me new things, appreciate it!
Also I was just asking because when i got the RC revalued they said I was at negative equity of 8,000 and I was just alarmed :/.
Thank you guys for always taking the time to explain and teach me new things, appreciate it!
03-21-16, 11:13 AM
#3
Lead Lap
Thread Starter
Thank you ryan!
So from my dealership they are saying the value of my RC F sport 350 is only 40k. With 9k miles, F sport package and etc ~ kind of lower than I expected. I am going to look around at different dealerships and see what numbers I can get. I am thinking of going from lease -> financing but a different car. I thank you again for the information
So from my dealership they are saying the value of my RC F sport 350 is only 40k. With 9k miles, F sport package and etc ~ kind of lower than I expected. I am going to look around at different dealerships and see what numbers I can get. I am thinking of going from lease -> financing but a different car. I thank you again for the information
03-21-16, 11:17 AM
#5
Lead Lap
Thread Starter
Can I ask what you would do in my shoes? Would you take the hit of the 8k and go finance the RC F or the GS 350 F sport instead of leasing the RC 350 F? or wait another 18 months for the lease to end? and by then already have spent 20k into the lease?
03-21-16, 11:22 AM
#6
That said I had a 36 month CT lease in 2013. Worst car known to human (I have owned 47 cars so far). I did the calculation as you did, and after 11 months and 28 k miles I would rather take my own life than drive a CT200h
I traded the car in and have been happier since
You can always try to sell the car outright on your own
Do a lease trader
Car max
Etc
03-21-16, 11:25 AM
#7
Lead Lap
Thread Starter
Hard to give financial advice without knowing lot more info and details which you may not want to provide on a public forum
That said I had a 36 month CT lease in 2013. Worst car known to human (I have owned 47 cars so far). I did the calculation as you did, and after 11 months and 28 k miles I would rather take my own life than drive a CT200h
I traded the car in and have been happier since
You can always try to sell the car outright on your own
Do a lease trader
Car max
Etc
That said I had a 36 month CT lease in 2013. Worst car known to human (I have owned 47 cars so far). I did the calculation as you did, and after 11 months and 28 k miles I would rather take my own life than drive a CT200h
I traded the car in and have been happier since
You can always try to sell the car outright on your own
Do a lease trader
Car max
Etc
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03-21-16, 11:28 AM
#8
How much did you pay for your car
What are he lease terms
What is residual
What is money factor
Is this your only car
Why don't you want the rc350 anymore
If you want rcf it's the same car with more power
But if you want gs350 it has more doors but same power as know
Did situation in your life change that you need more doors
Or are you just craving more power
Are you a buy 1 car own ten years or a guy that changes cars every few months
How much do you drive a year
What payment are you comfortable with monthly ?
This is a good article for you to check out
Read the comments section as well
http://thegarage.jalopnik.com/how-do...-lo-1638064679
What are he lease terms
What is residual
What is money factor
Is this your only car
Why don't you want the rc350 anymore
If you want rcf it's the same car with more power
But if you want gs350 it has more doors but same power as know
Did situation in your life change that you need more doors
Or are you just craving more power
Are you a buy 1 car own ten years or a guy that changes cars every few months
How much do you drive a year
What payment are you comfortable with monthly ?
This is a good article for you to check out
Read the comments section as well
http://thegarage.jalopnik.com/how-do...-lo-1638064679
03-21-16, 11:48 AM
#9
Lead Lap
Thread Starter
I do not have the actual numbers in front of me but ball parking
How much did you pay for your car: 54,000
What are he lease terms 36 months, $600 a month
What is residual 33,000
What is money factor .0018
Is this your only car: yes (travel about 60% of the year now)
Why don't you want the rc350 anymore: Had a realization of wanting to buy the car instead of leasing and did not want to buy the RC350 at the end.
If you want rcf it's the same car with more power
But if you want gs350 it has more doors but same power as know understood
Did situation in your life change that you need more doors
Or are you just craving more power Realization is just how difficult it is for passengers and in the future when I get married, the challenge would be to get the wife to agree into buying a new sports car that would cost 60k, but have the reliability of lexus
Are you a buy 1 car own ten years or a guy that changes cars every few months ideally own a car for 10 years
How much do you drive a year 10-12k miles
What payment are you comfortable with monthly ? $900
This is a good article for you to check out
Read the comments section as well
http://thegarage.jalopnik.com/how-do...-lo-1638064679
What are he lease terms 36 months, $600 a month
What is residual 33,000
What is money factor .0018
Is this your only car: yes (travel about 60% of the year now)
Why don't you want the rc350 anymore: Had a realization of wanting to buy the car instead of leasing and did not want to buy the RC350 at the end.
If you want rcf it's the same car with more power
But if you want gs350 it has more doors but same power as know understood
Did situation in your life change that you need more doors
Or are you just craving more power Realization is just how difficult it is for passengers and in the future when I get married, the challenge would be to get the wife to agree into buying a new sports car that would cost 60k, but have the reliability of lexus
Are you a buy 1 car own ten years or a guy that changes cars every few months ideally own a car for 10 years
How much do you drive a year 10-12k miles
What payment are you comfortable with monthly ? $900
This is a good article for you to check out
Read the comments section as well
http://thegarage.jalopnik.com/how-do...-lo-1638064679
03-21-16, 11:54 AM
#10
You Are paying pretty high interest in your current lease
Your payment threshold is high enough that you likely are in good financial position.
So rcf isn't a consideration since you need a 4 door
In that case, if I was in your shoes (not cpa friendly advise but life advice), I would buy a gs350
Gs is not a new platform and there are great buys to be had for now
Negotiate hard on a gs
Limit the negative equity on the rc (higher down payment) and you should be good to go
Given you keep a car for 10 years
Negative equity will be irrelevant
Of course if you can get that down to say 5k, and put 5k down, you will have 0 negative
Of course you can sell car outright separately would be best deal
Cut your losses, but your gs, move on with life, consider that the hard expensive lesson learned
*above is what I would do. I am not a cpa*
Your payment threshold is high enough that you likely are in good financial position.
So rcf isn't a consideration since you need a 4 door
In that case, if I was in your shoes (not cpa friendly advise but life advice), I would buy a gs350
Gs is not a new platform and there are great buys to be had for now
Negotiate hard on a gs
Limit the negative equity on the rc (higher down payment) and you should be good to go
Given you keep a car for 10 years
Negative equity will be irrelevant
Of course if you can get that down to say 5k, and put 5k down, you will have 0 negative
Of course you can sell car outright separately would be best deal
Cut your losses, but your gs, move on with life, consider that the hard expensive lesson learned
*above is what I would do. I am not a cpa*
03-21-16, 11:56 AM
#11
Lead Lap
Thread Starter
thank you ryan! RC - F is a consideration 
would have the coupe and than buy a sedan later down the road xD. But basically, cancel out the negative equity by getting it down or looking around @ Carmax or other dealerships. Thank you for the tip! yeah... the MF was high for some reason, i was hoping to get it @ .0009 but I guess the timing was bad? I might wait until the end of the year too since there maybe better deals around that time?
Especially since the 2015 RC Fs are still on the lots of some dealerships but the whole fuel pump failure is the scare
would have the coupe and than buy a sedan later down the road xD. But basically, cancel out the negative equity by getting it down or looking around @ Carmax or other dealerships. Thank you for the tip! yeah... the MF was high for some reason, i was hoping to get it @ .0009 but I guess the timing was bad? I might wait until the end of the year too since there maybe better deals around that time?Especially since the 2015 RC Fs are still on the lots of some dealerships but the whole fuel pump failure is the scare
03-21-16, 11:57 AM
#12
Gs350 are selling for 7-8k off msrp
https://www.clublexus.com/forums/gs-...re-here-8.html
Rcf almost 14k off msrp
When you buy interest rate will be lot better
If you lease again, use msd to lower your mf, Lexus and BMW allows 9 msd payment
https://www.clublexus.com/forums/gs-...re-here-8.html
Rcf almost 14k off msrp
When you buy interest rate will be lot better
If you lease again, use msd to lower your mf, Lexus and BMW allows 9 msd payment
03-21-16, 12:07 PM
#13
Lead Lap
Thread Starter
Gs350 are selling for 7-8k off msrp
https://www.clublexus.com/forums/gs-...re-here-8.html
Rcf almost 14k off msrp
When you buy interest rate will be lot better
If you lease again, use msd to lower your mf, Lexus and BMW allows 9 msd payment
https://www.clublexus.com/forums/gs-...re-here-8.html
Rcf almost 14k off msrp
When you buy interest rate will be lot better
If you lease again, use msd to lower your mf, Lexus and BMW allows 9 msd payment
thank you!