Whatever, 1st world problems. Its a car loan. You agreed to get it. Now its time to pay it. You committed to monthly payments for a term. How does it change anything?
It changes a bit if you get into an accident and your insurance company will only pay the "new" cash value. Luckily Im not in that boat, Im not even really angry, but people are 100% justified to be pissed off.
Your lender might want you to pay off the loan rather then get a replacement vehicle since the collateral isn't there anymore. So you're on the hook for the difference.But wouldn’t the new cash value put you into the exact same car? What’s the problem in this example?
It’s going to be challenging for the insurance companies to come up with a value for a totaled M3 right now because the used market has not adjusted to the new pricing scheme. It will settle out in time, but for now if you total your M3 it’s a little unclear how they will calculate the value of the loss. Those who bought last year paid a much higher price, but received a greater tax incentive, which is no longer available. Who know how the insurance company will sort that out.
1) You lose basically that much driving off the lot, it is near instant.Don't think so. Normal cars lose 15% after the first year. You would put 15-20% down on the car.
I can’t see how the tax incentive figures into any insurance payment .... at all. It has no effect on the resell, salvage or net present value of the vehicle....
It’s really a non sequitur. The resale value didn’t magically drop by $3750 on January 1.
1) You lose basically that much driving off the lot, it is near instant.
2) My LR D would cost me maybe $2000 (<edit> or $3000, kinda fuzzy) less today, although hard to nail that down exactly because I couldn't get it in the colour I did and EAP isn't available. That's not even close to 15%. So if you put 20% down how are you going "underwater"? I mean after you factor in the $7500 that the IRS should be sending you within a few weeks (you have filed early, right?)