Does Tesla let you roll negative equity into a lease?

[paradoxical]

Before people say “OMG that’s horrible financially” let me start by saying this is a company car and the only thing that matters is keeping the monthly payment under $1200/mo. This is not coming out of my pocket.

Currently the company owns a 2022 M3P that was bought at peak pricing. There is about -12k equity in the car right now and the monthly payment is about $11xx/mo. The new M3P is so cheap that I could roll in that negative equity into the lease and still come out with a lease payment that is equivalent to my current payment - getting a new car while the company eats the negative equity. The company is fine with selling the car to get into a new lease if the payment stays the same, but they are not willing to write a $12k check out of pocket.

This leads to my question - will Tesla let me roll negative equity into a lease or is there no way around writing a check beforehand?

 

[jjrandorin]

I think thats all dependent on credit application, debt to income ratio etc. I am sure they roll some negative equity into leases / loans, but thats a pretty hefty number. I dont know how you can know if they will do it without applying, though.

 

[blinkme323]

No, you have to settle any negative equity in cash at delivery. Your only other option in that scenario is to secure your own financing and overextend the loan to account for the difference (some allow up to 125%)

 

[BigNick]

Your only other option in that scenario is to secure your own financing and overextend the loan to account for the difference (some allow up to 125%)

Financing a vehicle for more than it's worth (aside from financing taxes) such as up to the aforementioned 125% usually requires an 800+ credit score.

It's just not a risk most financial institutions want to take with just anyone.

 

[Dear_OP]

Poor financial sense is still poor financial sense be it personal or company. For the latter, an employee should exercise good fiduciary responsibility for the benefit if the organization. I imagine a proper company would have its financial specialists to review negative assets and expenses such at these.

 

[ATPMSD]

You should carefully read the early termination section of the lease. You will probably have to make all remaining payments in order to terminate the lease.