Trying to trade in 2 cars for 1 MY, advice?

[MontyFloyd]

Seeking help for a friend (really!)

2 cars up for trade in, a 2020 Corolla HEV and 2022 Highlander ICE.
Both must be traded in for a MY due to negative equity on one of them, and tight financial situation.

They already asked Tesla rep and they did not want 2. I asked another and he not 2
But there are a few who said they did sell 2.

Now, what about a private sale?
Again the negative equity is what is making them worry, as they would need to put some thousand $$ to pay it off.
Unless there is another way to deal with the negative equity?

Thanks

 

[E90alex]

Trade in the one with negative equity to Tesla so they can roll the negative into the new loan.

The other one if it’s not negative you’ll just have to sell privately or to carmax, Carvana, etc.

 

[MontyFloyd]

Trade in the one with negative equity to Tesla so they can roll the negative into the new loan.

The other one if it’s not negative you’ll just have to sell privately or to carmax, Carvana, etc.

What I am thinking too, offering alternatives.
For now its 2 for 1, and Tesla has done this before I read.

 

[mreynolds767]

Yeah above solution seems cleanest to me, sell the once with positive equity private, CarMax, Carvana, etc...
Use those excess proceeds as down payment to Telsa.

Trade the 1 with negative equity to Telsa and have them roll the amount into the loan.

With 1 car you can do this online with Tesla without human intervention ; the 2 trade-in's you cannot so have to get someone at Telsa to intervene which you maybe get someone willing to cooperate and make it work ; or maybe you don't.

 

[BroncoAZ]

You could keep the cars you have now and pay them off rather than getting a Tesla. Or sell off the car without the negative equity and pay down the one with it. Everyone wants shiny new stuff, but financial needs should outweigh the wants.

 

[mborkow]

Craigslist the one that’s not negative. They’ll do much better than Carmax, carvana, etc.

 

[ucmndd]

Unless there is another way to deal with the negative equity?

Make better life choices?

First rule when you find yourself in a hole: stop digging.

 

[MontyFloyd]

You could keep the cars you have now and pay them off rather than getting a Tesla. Or sell off the car without the negative equity and pay down the one with it. Everyone wants shiny new stuff, but financial needs should outweigh the wants.

Not I who is selling, and it is not because new.
The purpose is reduce expense by going BEV, a lot of daily miles that will be much cheaper operation with at home charging under a PV roof.

 

[MontyFloyd]

Make better life choices?

First rule when you find yourself in a hole: stop digging.

It's not me, and I tell them same.

Read previous post for benefit (besides a low low APR)

And my friend did trade the Hybrid for a MY AWD, picking up June 5

 

[BroncoAZ]

Not I who is selling, and it is not because new.
The purpose is reduce expense by going BEV, a lot of daily miles that will be much cheaper operation with at home charging under a PV roof.

My PV roof was $50K before incentives ($34K net), so unless they already have PV they aren’t saving money. I did a calculation for someone who asked me about going BEV recently. At the 38 cents per kWh in MA the cost difference to 100K on a Rav 4 vs MYLR was a savings of ~$500. I’m not sure what the rates are in TX, but the calculations for the Rav 4 assumed 30 mpg and 3333 gallons to 100K for a total fuel cost of $10K to 100K miles. At 50 mpg for the Corolla hybrid the potential savings isn’t enough to justify buying a new car. They need to fix the want problem to fix their financial situation. I predict this same friend will find themselves in a continued poor financial situation in one, two, and five years.

Do them a favor and offer to pay for Dave Ramsey FPU course. I’m not a huge Ramsey fan, but all three of the people I’ve paid for the class for made radical financial transformations and have kept it up several years later.

 

[MontyFloyd]

My PV roof was $50K before incentives ($34K net), so unless they already have PV they aren’t saving money. I did a calculation for someone who asked me about going BEV recently. At the 38 cents per kWh in MA the cost difference to 100K on a Rav 4 vs MYLR was a savings of ~$500. I’m not sure what the rates are in TX, but the calculations for the Rav 4 assumed 30 mpg and 3333 gallons to 100K for a total fuel cost of $10K to 100K miles. At 50 mpg for the Corolla hybrid the potential savings isn’t enough to justify buying a new car. They need to fix the want problem to fix their financial situation. I predict this same friend will find themselves in a continued poor financial situation in one, two, and five years.

Do them a favor and offer to pay for Dave Ramsey FPU course. I’m not a huge Ramsey fan, but all three of the people I’ve paid for the class for made radical financial transformations and have kept it up several years later.

First of they do have a large PV installed, over 100kWh on a mostly sunny day.
They also drive a lot of city miles, about 100 miles 4 out of 7 days, and once a month to other major Texas cities.
Grid Electricity is about $0.20 to $0.23/kWh.
At a guess using PV as much as possible and Grid for when need more anticipate the combined price around $0.10/kWh.
20~30k yearly driving.

Oh, and yes, Dave Ramsey is could help my friend with other items (not terrible, not good)

As for me, I have a 12 mile weekday commute, about 60 more during the week.
I also have PV with gobs of extra power, so I can almost completely avoid charging with grid.
I was tempted to get the MY @ 0.99%, but didn't.
It is a 20 year old car, 14 months ago spent a total about $4800 on surge of surprise repairs (5 individual small amount repairs over a years time), so there is that.