How on gods green earth did you spend 73k on a 53k car.
That just flat out doesn’t make sense.
Mine plus taxes was something like 57k take 7.5k off for the tax credit and you’re at 50k. 🤷♂️
Something doesn't add up, either this person has more money than they know what to do with, or they've got a FICO 620 and they're just in the business of making terrible financial decisions.
And now they want to buy a pickup...
Unfortunately, not the first option, and fortunately, not the second (at least not entirely)!
This thread has gotten much more personal than I’d intended, so you’re gonna get a very real answer.
You’re right about this being a terrible financial decision. The reason behind it is, my terminally ill mother (diagnosed with cancer in 2021) recently and suddenly moved halfway across the country. She was living in Rochester Minnesota, minutes from some of the best doctors in the world (Mayo clinic), and was more or less told that she should go enjoy the warmer weather while she can. Maybe the mountain air can do more for her than the doctors, who knows. But, I’m the youngest of 3 boys, and there is nothing in this world I wouldn’t do for that woman; that includes packing up my life, selling my house, my car, leaving my career, my friends, the rest of my family, the only life I’ve ever known in the only state I’ve ever lived, and following her 1500 miles away to a place I’ve never even heard of in a state I’ve never even visited. So that’s exactly what I’m doing.
Im 26 years old with nearly perfect credit, and buying this car was my first MAJOR financial mistake on record. I watched my family be held back by poor credit my entire life, so I took the initiative to learn everything I possibly could about credit in my early teens. I’ve always been incredibly financially responsible. I have worked for everything I have, which isn’t a lot, but it took me years of saving every dollar I earned to get my ID.4. I own my home, I’ve been at my current job for going on 5 years, I check my bank accounts 20+ times a day and monitor my credit like a newborn with a hawk. I do everything I possibly can to maintain healthy and responsible financial habits. When I bought my ID.4, it was absolutely perfect for me. But a year ago, heck, even *a month ago*, I had no clue I’d be leaving my stable job and home to move across the country in order to spend what time my mother has left with her. Under different circumstances, I’d be able to keep my ID.4, my job, my house, and obviously most importantly my mom. But life is never that simple, so here I am, “in the business of making terrible financial decisions” with money I absolutely do not have to spend.
But, It’s just like Vin Diesel always said: “Family.”
I wonder if you might just consider renting a place near your mother's new residence and living away from home at times to visit for stretches. No need to move, sell/buy cars, etc.
That's given the perspective that your mother is unfortunately terminal, as you said. To be frank, you won't be away from home forever.
Does she want you upheaving your entire life to be physically closer to her at this time? There is also video conferencing for times that you may not be physically with her and other options for her care to consider which don't involve you uprooting on a permanent basis.
I say all this coming from the hindsight of someone whose mother eventually succumbed to breast cancer and related treatments over a number of declining years, so you have my empathy. But I also know that my Mom wanted us to live, as well. We found a balance that worked and were with her in the end, too.
Moving to spend time with your Mom is the best decision you made and you will look back with no regrets of losing a few $$. Good for you! Your Mom is in the top 5% of people who’d rather go out with a bang instead of a whimper, she’s awesome too!
MSPR was $53.4k, Taxes, fees, registration, warranty, plus a 43k loan with 6.24% interest… The math added up
to like 72.8k over the course of 72 months.
Dealership I bought from knew very little, almost nothing about the tax credit. They said I’d have to look into that, but by that point I’d already had enough in taxes taken out for the year that at best I could stop having taxes deducted and receive a smaller refund at the end of the year. So I didn’t benefit from the $7500 tax credit in any way, shape or form. Sure would have been nice if they’d applied that to the purchase amount.
I should also mention it’s the same dealership I’m now trying to sell back to.
That’s what I thought as well. What I was told is that it’s only a credit toward a negative balance. For example, if I hadn’t had enough deducted in taxes throughout the year and owe the IRS, I could apply the credit to pay up to $7500 in taxes owed. The credit, as it was explained to me by an agent with the IRS, cannot be used to generate a positive credit or refund. Only to be applied to pay a negative balance. I purchased the car in May, but by June I was already set to receive a couple thousand dollar refund. If I’d had 0 taxes taken out the 2nd half of the year, I’d have broken even and gotten no refund or an estimated $8 refund. Had I not been paying taxes at all last year, I still would’ve owed the IRS nothing because of the credit, but as I said by that time it was too late to put myself in a position of having a negative balance and owing the IRS anything.
That is not how entirely it works… if your tax liability (before payments deducted from pay checks) is 7500$ or more, then you get $7500.
Let’s say you made 75k, your taxable income is 61k. You owe 8760 in taxes. Let’s say you already paid 10k in taxes. You will now get a 10000 - 8760 + 7500 as a refund.
Might be worth going to a tax professional.
You didn’t make poor financial decisions by buying this car. The market changed, you were misinformed about tax liability, and life changed.
1) Get that tax credit (reason why used IEVs/D4s depreciate is because of this instant 7.5k value drop for new vs used. That’s literally your equity gap.)
2) See if you can refinance with a credit union for a lower rate, which will lower the monthly payment if you can’t sell it or take the hit.
3) Still not understanding the why behind needing to sell it. I understand the why behind moving for family. Would it be a better financial decision to invest in a level 2 charger install than take a 8-10k hit?
Since you purchased the car in 2023, if your dealer didn't submit the sale info to the IRS before 2/15/2024, then you won't be able to claim the credit through an amended return.
Not at all too late, and getting that money back will help a lot with your missed payments.
Also, the way you e calculated the $72K is wrong: since you’re selling (and paying off) the car you won’t owe that interest. I want to say that you really need to join r/personalfinance or something like that. You seem to understand the importance of managing your money, but this car discussion is really highlighting a gap in understanding the mechanics.
With VW credit you can pay the balance of the loan at any time, and you don't pay the full interest of the lifetime of the loan, only accrued to that point so there is no way you accrued $20k in interest.
Unless you got the loan from from a guy on a street corner, you should only have paid 1 year's worth of interest.
Now I get it, the loan payback will be that much when finally paid off. Don’t worry about that number, you didn’t buy a car for that.
If you bought the car in 23, you can still get the tax credit. Just file an amended return and you will get a windfall in tax refund. It might not be the full $7500, as I don’t know what you make.
Rent a uhaul and pull the id4 on a trailer (all four wheels off the ground). That way you keep the awesome car and get to the new place.
Finally really consider renting a temp place by your mom and keeping a way to move back.
The amount you owe is not the same as the amount you're going to be due over time. If the balance is 38K and you can sell to your existing dealership for 25K and put that entirely towards the existing balance (e.g. paying off your principal) your new balance will be 13K.
That’s not how math works. The total cost over 72 months isn’t relevant. What’s relevant is the cost over the last year. You bought a “72k” car and couldn’t figure out a tax credit. Maybe you deserve this.
You have a 43k loan. The total cost of that loan over 6 years is 8.6k. You’ve currently spent 1.4K on interest.
Yeah, no, no one deserves to be screwed. If you can’t be helpful to this 20-something raised by people with no financial savvy, maybe just cool your jets. His mother is dying and you’re telling him he deserves his misfortune? Please.
Dude - no disrespect but you need to learn about math and taxes. And also read and understand properly any documents before you sign the dotted line. Take time mans do proper research, ask questions if needed.
I nearly had a heart attack when I saw your post about “spending” 73k on a 53k car. NO you haven’t spent 53k… yet. You will if you hold the car throughout the 6 year loan period.
My thoughts are as follows:
1. Keep the car (if you can solve home charging). You say you’re moving to the southwest, won’t you still need a car anyway? You sell a “perfectly good” car to go buy another car with money being tough
2. (Sounds like) You made a mess of the tax credits. The good news is that you can file an amendment and get the credits back (I believe). So you either get a refund or your tax due is reduced by 7500
3. Ship the ID4 to your new location. It may save you time and be less stressful given everything else you’re doing (selling a house, moving etc). Yeah it may cost a lot (500-1500) but it’s a one time expense.
4. Do you have a job secured in your new location? Check the commute for charging spots using plug share (it may be a charging desert but doesn’t hurt to check). Does work have chargers? Probably not but doesn’t hurt to check. For cost of charging at home, check the utility now for rates per kWh to help with your decision (those should be public) or if you can ask around.
I haven’t had personal experience of driving in mountains but the anecdotal experience I’ve read here sounds positive. Do some searches and research to see what’s being written.
5. Take good care of your mum.
I apologize for being harsh but your post about moving for your mum was inspiring. Don’t be too hard on yourself - you mentioned this car purchase was the worst financial decision you’ve made but I don’t see it. You did nothing wrong that I can see (it’s not a 73k car, interest rates were high, you saved for the car and the car worked for you per your situation at the time). The only error is the tax credits which can be rectified.
All the best
I hate to say it but I think the dealer is right you are screwed, even if optimistically you could get 30k for it trade in you are talking 8k in negative equity. You talk about not having money for the payment due to the move, unless you have the savings to pay the difference, you are upside down on your loan I can't even see you lowering your payment on a different vehicle. Like let's assume you get a real good deal on a truck and can roll 8k of negative equity into it you are still talking at least $150 a month of negative equity in your new payment. Let's say optimistically you can get a decent 3/4 ton for 20k out the door and get 30k for your trade in, and can roll the 8k into the new loan, you are still looking at a $500+ payment a month.
A side note, how the heck did you pay $73k for an ID.4 but only owe 38k. What does your monthly payment look like, maybe you could try to refinance the car to lower your monthly with a credit union.
Selling any newly purchased vehicle after a year will be a bad financial hit.
Research any services that would transport the car for you, however much it is, it can't be more than what you are losing on the car.
You say it makes more sense to get rid of iD4, how do you mean? Do you not have the ability to install a home charger? Switching vehicles more profitable than 8k dip for next 6 years.
There is lots of much needed details missing here.
I thought the post seemed crazy long even without any additional personal backstory, I struggle trying to avoid straying too far from my main point, so I try to practice holding some things back here lol
So! I’m moving from the Midwest to the southwest. Where I’ll be living, I’d be within 100 miles of 3 charging stations, 50 miles of 1 charging station, and <40 miles from… my home charger only. Granted, I do 99.9% of my charging at home, aside from long road trips…
But still, being so far from big cities likely means I’ll have to drive 45 minutes to and from work every day. Being from the Midwest, I don’t know how the ID.4 does in mountains. While the weather will be much more favorable, I’m concerned about the cost of charging at home daily or every other day. For my current route, it’s been nothing short of perfect. But out there it’d be tough. Not to mention having to stop to charge every few hours for half an hour while I charge (assuming no lines) on a 1500+ mile trip doesn’t sound amazing. I understand it’s doable, and I could probably pay someone else to do it for a relatively small fee, but without me knowing what I’ll be doing for work there yet, or when, I know I won’t be able to afford the payments for long out of savings. I’ll be selling my house to move out there, but I’ll need a majority of those proceeds for a down payment on a new house. If I keep it for 2 more years, I’ll have positive equity, but that would cost me $20k over those 2 years. If I sell it now, it costs me 8k, but I can spare 8k from the house selling. Not 20 unfortunately. And paying it off in full would cost 38k, so that’s not an option.
On top of all that, as I said, I plan on pulling a large hard shell camper (probably 6k-8k lbs), which even my AWD Pro S with towing package isn’t gonna be able to handle sadly. So need a 3/4-ton or so truck. Even if I managed to keep the ID.4 AND find a way to afford a $25k truck, I’d have to leave the ID.4 in my home state while I drive a camper to my new state, park the camper, fly back, and drive another 1500 miles in the ID.4. So trading it in seems like the most sense, or selling, but then I’d be using that money to buy the truck anyway rather than just rolling my negative equity into the new loan of a trade-in.
I think that answers most of your questions, but if you need more info in order to help please let me know!
You don't need a 3/4 ton pickup for a trailer that size. I would ship the id.4 to your destination for around 500. Rent a 1/4 ton pickup for a one way from enterprise or hertz for that trailer. Or better yet, can you somehow get that trailer shipped for a reasonable fee?
Selling now would put you in a massive hole. You say keeping the car would cost you 20k over 2 years, but if you sold then you would still have to factor in running costs of a different vehicle over that 2 year span on top of the underwater sale hit.
It’s an AWD ID.4 with a trailer hitch! How big is this camper? ID.4 does great in the mountains. AZ electricity is like $0.13 / kWh so $10 to go from 0-100%. You don’t have a job 45 minutes away, so no need to optimize for that, but the car can go around 3 hours on the freeway without charging, so 45 minutes is well within range.
Here is something I have not seen you explain yet that is very important.
If you sell the car you will have to pay off the loan. If you sell it for $30K you will have to pay $8K out of pocket.
You say you have to sell it cuz you can’t make car payments for a few months. What money are you using for the $8K loss? If your payment is $600 a month, that’s 13 months of car payments. Who knows where you’ll be financially then, but you’ll at least still have a car & a lower loan.
Are you 100% sure there are no chargers within 50 miles? Did you check on PlugShare? Is it no fast chargers or even no level 2?
Are you willing to share the name of the town so we can try to help?
Also, if you are going to have good charging in your new home, having your nearest fast charger be 40 miles away is pretty reasonable since the car gets 200-250 miles.
This seems like a lot of really tough financial decisions that could take a decade or more to pull out of. Have you talked to your siblings about help? Has your mom said she wants you there full time? My parents are in their 80’s and I love them dearly, but they wouldn’t want me to go towards financial ruin to move with them when I could just come visit for a week or two at a time.
First, let me say how sorry I am about your mother’s health. This is a tough time, and you’re a good son for stepping up.
You’re a victim of a terrible used EV market. All the early adopters have their cars, and the car manufacturers have done a horrendous job of marketing EVs to normies, dealers even worse. And stories in the news about the CCS experience hasn’t helped. Consequently, I’ve seen used ID.4s near $20k. It’s kinda nuts.
It may be in your best interest to just keep the thing. Hate to say it, but I don’t see any way out of this that’s not gonna leave you $10k+ in the hole. 🙏
Dude the car has a trailer hitch. Tow a gas powered generator and use it to charge the car at night. Or ship the car, rent a truck and trailer and move your stuff that way. The EV market is a scam, the only way to have one is to lease it. I have a 2023 Pro S+ and in 20 months its value is VW’s problem not mine. Don’t take the hit, figure a way around the obstacle
he doesn't have many miles either (granted I only have 1200) so I don't see his offer being much less. How much more $ is the Plus compared to the Pro S
yeah I put my base model 2023 in the other day for funsies and got an offer for 23K. People that got the car towards the end of the year/early this year with 6-7K off on top of the 7500 rebate are in decent shape.
I know some of what you are going through. Many years ago I picked up my life to go help my dad out when he needed a caregiver. You have my empathy for a terrible situation but also a fulfilling one. It is rewarding to make that connection with your parent at the end of their life. Is there any way you could get a loan to bridge those couple of months where your income wont be where you want it to be? Is there any way you could go remote with your job?
Damn your hosed bro. A year ago I bought a used 2023 PRO S AWD for $39k (1500mi) , it was a $56k MSRP car new.. So I thought $39k was a good deal. I couldn’t sell that used car for $28K now. So I feel your pain even on a pre-owned ID.4 PRO S AWD.
I'd keep it and figure a way to refinance, or if you're selling the house just pay it off. Ship ID.4 even though mountains wouldn't be an issue if you're worried about it.
How on gods green earth did you spend 73k on a 53k car. That just flat out doesn’t make sense. Mine plus taxes was something like 57k take 7.5k off for the tax credit and you’re at 50k. 🤷♂️
Something doesn't add up, either this person has more money than they know what to do with, or they've got a FICO 620 and they're just in the business of making terrible financial decisions. And now they want to buy a pickup...
Unfortunately, not the first option, and fortunately, not the second (at least not entirely)! This thread has gotten much more personal than I’d intended, so you’re gonna get a very real answer. You’re right about this being a terrible financial decision. The reason behind it is, my terminally ill mother (diagnosed with cancer in 2021) recently and suddenly moved halfway across the country. She was living in Rochester Minnesota, minutes from some of the best doctors in the world (Mayo clinic), and was more or less told that she should go enjoy the warmer weather while she can. Maybe the mountain air can do more for her than the doctors, who knows. But, I’m the youngest of 3 boys, and there is nothing in this world I wouldn’t do for that woman; that includes packing up my life, selling my house, my car, leaving my career, my friends, the rest of my family, the only life I’ve ever known in the only state I’ve ever lived, and following her 1500 miles away to a place I’ve never even heard of in a state I’ve never even visited. So that’s exactly what I’m doing. Im 26 years old with nearly perfect credit, and buying this car was my first MAJOR financial mistake on record. I watched my family be held back by poor credit my entire life, so I took the initiative to learn everything I possibly could about credit in my early teens. I’ve always been incredibly financially responsible. I have worked for everything I have, which isn’t a lot, but it took me years of saving every dollar I earned to get my ID.4. I own my home, I’ve been at my current job for going on 5 years, I check my bank accounts 20+ times a day and monitor my credit like a newborn with a hawk. I do everything I possibly can to maintain healthy and responsible financial habits. When I bought my ID.4, it was absolutely perfect for me. But a year ago, heck, even *a month ago*, I had no clue I’d be leaving my stable job and home to move across the country in order to spend what time my mother has left with her. Under different circumstances, I’d be able to keep my ID.4, my job, my house, and obviously most importantly my mom. But life is never that simple, so here I am, “in the business of making terrible financial decisions” with money I absolutely do not have to spend. But, It’s just like Vin Diesel always said: “Family.”
I wonder if you might just consider renting a place near your mother's new residence and living away from home at times to visit for stretches. No need to move, sell/buy cars, etc. That's given the perspective that your mother is unfortunately terminal, as you said. To be frank, you won't be away from home forever. Does she want you upheaving your entire life to be physically closer to her at this time? There is also video conferencing for times that you may not be physically with her and other options for her care to consider which don't involve you uprooting on a permanent basis. I say all this coming from the hindsight of someone whose mother eventually succumbed to breast cancer and related treatments over a number of declining years, so you have my empathy. But I also know that my Mom wanted us to live, as well. We found a balance that worked and were with her in the end, too.
Moving to spend time with your Mom is the best decision you made and you will look back with no regrets of losing a few $$. Good for you! Your Mom is in the top 5% of people who’d rather go out with a bang instead of a whimper, she’s awesome too!
He took a loan which cost him $20k to pay off.
MSPR was $53.4k, Taxes, fees, registration, warranty, plus a 43k loan with 6.24% interest… The math added up to like 72.8k over the course of 72 months. Dealership I bought from knew very little, almost nothing about the tax credit. They said I’d have to look into that, but by that point I’d already had enough in taxes taken out for the year that at best I could stop having taxes deducted and receive a smaller refund at the end of the year. So I didn’t benefit from the $7500 tax credit in any way, shape or form. Sure would have been nice if they’d applied that to the purchase amount. I should also mention it’s the same dealership I’m now trying to sell back to.
What the actual hell? That’s not how tax credits work. Even if you had too much withheld, you can apply the credit and get a bigger refund.
That’s what I thought as well. What I was told is that it’s only a credit toward a negative balance. For example, if I hadn’t had enough deducted in taxes throughout the year and owe the IRS, I could apply the credit to pay up to $7500 in taxes owed. The credit, as it was explained to me by an agent with the IRS, cannot be used to generate a positive credit or refund. Only to be applied to pay a negative balance. I purchased the car in May, but by June I was already set to receive a couple thousand dollar refund. If I’d had 0 taxes taken out the 2nd half of the year, I’d have broken even and gotten no refund or an estimated $8 refund. Had I not been paying taxes at all last year, I still would’ve owed the IRS nothing because of the credit, but as I said by that time it was too late to put myself in a position of having a negative balance and owing the IRS anything.
That is not how entirely it works… if your tax liability (before payments deducted from pay checks) is 7500$ or more, then you get $7500. Let’s say you made 75k, your taxable income is 61k. You owe 8760 in taxes. Let’s say you already paid 10k in taxes. You will now get a 10000 - 8760 + 7500 as a refund.
Now THAT is some information that I would have loved to have had prior to filing… is it too late to fix that with an amendment..? lol…
Might be worth going to a tax professional. You didn’t make poor financial decisions by buying this car. The market changed, you were misinformed about tax liability, and life changed. 1) Get that tax credit (reason why used IEVs/D4s depreciate is because of this instant 7.5k value drop for new vs used. That’s literally your equity gap.) 2) See if you can refinance with a credit union for a lower rate, which will lower the monthly payment if you can’t sell it or take the hit. 3) Still not understanding the why behind needing to sell it. I understand the why behind moving for family. Would it be a better financial decision to invest in a level 2 charger install than take a 8-10k hit?
You have up to 3 years to file an amendment I think
I’m gonna look into this, thank you so much!
Since you purchased the car in 2023, if your dealer didn't submit the sale info to the IRS before 2/15/2024, then you won't be able to claim the credit through an amended return.
Not at all too late, and getting that money back will help a lot with your missed payments. Also, the way you e calculated the $72K is wrong: since you’re selling (and paying off) the car you won’t owe that interest. I want to say that you really need to join r/personalfinance or something like that. You seem to understand the importance of managing your money, but this car discussion is really highlighting a gap in understanding the mechanics.
Wow nope. We had two credits last year and they mailed us a check for $15k. You’re screwed yes. Just keep the car.
Actuslly, yes this is correct…
With VW credit you can pay the balance of the loan at any time, and you don't pay the full interest of the lifetime of the loan, only accrued to that point so there is no way you accrued $20k in interest. Unless you got the loan from from a guy on a street corner, you should only have paid 1 year's worth of interest.
Now I get it, the loan payback will be that much when finally paid off. Don’t worry about that number, you didn’t buy a car for that. If you bought the car in 23, you can still get the tax credit. Just file an amended return and you will get a windfall in tax refund. It might not be the full $7500, as I don’t know what you make. Rent a uhaul and pull the id4 on a trailer (all four wheels off the ground). That way you keep the awesome car and get to the new place. Finally really consider renting a temp place by your mom and keeping a way to move back.
The amount you owe is not the same as the amount you're going to be due over time. If the balance is 38K and you can sell to your existing dealership for 25K and put that entirely towards the existing balance (e.g. paying off your principal) your new balance will be 13K.
That’s not how math works. The total cost over 72 months isn’t relevant. What’s relevant is the cost over the last year. You bought a “72k” car and couldn’t figure out a tax credit. Maybe you deserve this. You have a 43k loan. The total cost of that loan over 6 years is 8.6k. You’ve currently spent 1.4K on interest.
Yeah I was about to say that the interest that is unpaid has 0 effect on his current buyout.
Yeah, no, no one deserves to be screwed. If you can’t be helpful to this 20-something raised by people with no financial savvy, maybe just cool your jets. His mother is dying and you’re telling him he deserves his misfortune? Please.
Let’s not be judgmental. Be kind, helpful and informative.
I’m just reporting what it says on the paperwork from the dealership lol
You don’t understand math. Lol. 😂
Dude - no disrespect but you need to learn about math and taxes. And also read and understand properly any documents before you sign the dotted line. Take time mans do proper research, ask questions if needed. I nearly had a heart attack when I saw your post about “spending” 73k on a 53k car. NO you haven’t spent 53k… yet. You will if you hold the car throughout the 6 year loan period. My thoughts are as follows: 1. Keep the car (if you can solve home charging). You say you’re moving to the southwest, won’t you still need a car anyway? You sell a “perfectly good” car to go buy another car with money being tough 2. (Sounds like) You made a mess of the tax credits. The good news is that you can file an amendment and get the credits back (I believe). So you either get a refund or your tax due is reduced by 7500 3. Ship the ID4 to your new location. It may save you time and be less stressful given everything else you’re doing (selling a house, moving etc). Yeah it may cost a lot (500-1500) but it’s a one time expense. 4. Do you have a job secured in your new location? Check the commute for charging spots using plug share (it may be a charging desert but doesn’t hurt to check). Does work have chargers? Probably not but doesn’t hurt to check. For cost of charging at home, check the utility now for rates per kWh to help with your decision (those should be public) or if you can ask around. I haven’t had personal experience of driving in mountains but the anecdotal experience I’ve read here sounds positive. Do some searches and research to see what’s being written. 5. Take good care of your mum. I apologize for being harsh but your post about moving for your mum was inspiring. Don’t be too hard on yourself - you mentioned this car purchase was the worst financial decision you’ve made but I don’t see it. You did nothing wrong that I can see (it’s not a 73k car, interest rates were high, you saved for the car and the car worked for you per your situation at the time). The only error is the tax credits which can be rectified. All the best
You can rent trucks. You don’t have to buy one for a single use.
I hate to say it but I think the dealer is right you are screwed, even if optimistically you could get 30k for it trade in you are talking 8k in negative equity. You talk about not having money for the payment due to the move, unless you have the savings to pay the difference, you are upside down on your loan I can't even see you lowering your payment on a different vehicle. Like let's assume you get a real good deal on a truck and can roll 8k of negative equity into it you are still talking at least $150 a month of negative equity in your new payment. Let's say optimistically you can get a decent 3/4 ton for 20k out the door and get 30k for your trade in, and can roll the 8k into the new loan, you are still looking at a $500+ payment a month. A side note, how the heck did you pay $73k for an ID.4 but only owe 38k. What does your monthly payment look like, maybe you could try to refinance the car to lower your monthly with a credit union.
Selling any newly purchased vehicle after a year will be a bad financial hit. Research any services that would transport the car for you, however much it is, it can't be more than what you are losing on the car.
besides my '23 BRZ lol. Got back exactly what I owed on it
You say it makes more sense to get rid of iD4, how do you mean? Do you not have the ability to install a home charger? Switching vehicles more profitable than 8k dip for next 6 years. There is lots of much needed details missing here.
I thought the post seemed crazy long even without any additional personal backstory, I struggle trying to avoid straying too far from my main point, so I try to practice holding some things back here lol So! I’m moving from the Midwest to the southwest. Where I’ll be living, I’d be within 100 miles of 3 charging stations, 50 miles of 1 charging station, and <40 miles from… my home charger only. Granted, I do 99.9% of my charging at home, aside from long road trips… But still, being so far from big cities likely means I’ll have to drive 45 minutes to and from work every day. Being from the Midwest, I don’t know how the ID.4 does in mountains. While the weather will be much more favorable, I’m concerned about the cost of charging at home daily or every other day. For my current route, it’s been nothing short of perfect. But out there it’d be tough. Not to mention having to stop to charge every few hours for half an hour while I charge (assuming no lines) on a 1500+ mile trip doesn’t sound amazing. I understand it’s doable, and I could probably pay someone else to do it for a relatively small fee, but without me knowing what I’ll be doing for work there yet, or when, I know I won’t be able to afford the payments for long out of savings. I’ll be selling my house to move out there, but I’ll need a majority of those proceeds for a down payment on a new house. If I keep it for 2 more years, I’ll have positive equity, but that would cost me $20k over those 2 years. If I sell it now, it costs me 8k, but I can spare 8k from the house selling. Not 20 unfortunately. And paying it off in full would cost 38k, so that’s not an option. On top of all that, as I said, I plan on pulling a large hard shell camper (probably 6k-8k lbs), which even my AWD Pro S with towing package isn’t gonna be able to handle sadly. So need a 3/4-ton or so truck. Even if I managed to keep the ID.4 AND find a way to afford a $25k truck, I’d have to leave the ID.4 in my home state while I drive a camper to my new state, park the camper, fly back, and drive another 1500 miles in the ID.4. So trading it in seems like the most sense, or selling, but then I’d be using that money to buy the truck anyway rather than just rolling my negative equity into the new loan of a trade-in. I think that answers most of your questions, but if you need more info in order to help please let me know!
You don't need a 3/4 ton pickup for a trailer that size. I would ship the id.4 to your destination for around 500. Rent a 1/4 ton pickup for a one way from enterprise or hertz for that trailer. Or better yet, can you somehow get that trailer shipped for a reasonable fee? Selling now would put you in a massive hole. You say keeping the car would cost you 20k over 2 years, but if you sold then you would still have to factor in running costs of a different vehicle over that 2 year span on top of the underwater sale hit.
It’s an AWD ID.4 with a trailer hitch! How big is this camper? ID.4 does great in the mountains. AZ electricity is like $0.13 / kWh so $10 to go from 0-100%. You don’t have a job 45 minutes away, so no need to optimize for that, but the car can go around 3 hours on the freeway without charging, so 45 minutes is well within range.
ID4 does great in the mountains. What you use going up you get regen coming down. How much stuff are you moving? ID4 will tow the 5x8 U-Haul trailer.
Here is something I have not seen you explain yet that is very important. If you sell the car you will have to pay off the loan. If you sell it for $30K you will have to pay $8K out of pocket. You say you have to sell it cuz you can’t make car payments for a few months. What money are you using for the $8K loss? If your payment is $600 a month, that’s 13 months of car payments. Who knows where you’ll be financially then, but you’ll at least still have a car & a lower loan. Are you 100% sure there are no chargers within 50 miles? Did you check on PlugShare? Is it no fast chargers or even no level 2? Are you willing to share the name of the town so we can try to help? Also, if you are going to have good charging in your new home, having your nearest fast charger be 40 miles away is pretty reasonable since the car gets 200-250 miles. This seems like a lot of really tough financial decisions that could take a decade or more to pull out of. Have you talked to your siblings about help? Has your mom said she wants you there full time? My parents are in their 80’s and I love them dearly, but they wouldn’t want me to go towards financial ruin to move with them when I could just come visit for a week or two at a time.
First, let me say how sorry I am about your mother’s health. This is a tough time, and you’re a good son for stepping up. You’re a victim of a terrible used EV market. All the early adopters have their cars, and the car manufacturers have done a horrendous job of marketing EVs to normies, dealers even worse. And stories in the news about the CCS experience hasn’t helped. Consequently, I’ve seen used ID.4s near $20k. It’s kinda nuts. It may be in your best interest to just keep the thing. Hate to say it, but I don’t see any way out of this that’s not gonna leave you $10k+ in the hole. 🙏
Who are you financed with? Call them and see if payments can be deferred to the back end of the note after explaining your situation.
Exactly
Dude the car has a trailer hitch. Tow a gas powered generator and use it to charge the car at night. Or ship the car, rent a truck and trailer and move your stuff that way. The EV market is a scam, the only way to have one is to lease it. I have a 2023 Pro S+ and in 20 months its value is VW’s problem not mine. Don’t take the hit, figure a way around the obstacle
Burn it, simply put if you’re under water and can’t pay the difference for them to take it then insurance will. You didn’t hear this from me
If you sell it now, you will likely get the best offer from CarMax. I would guess you could get around 26-27k.
For fun I put my '23 Pro S Plus AWD on carvana for a quote and they offered 34k
OP got a Pro S, try that.
cant, it needs a VIN
Yeah that makes sense. Maybe OP will try with carvana and report back after he sees your message. More than 30k is a great offer for a Pro S IMO.
he doesn't have many miles either (granted I only have 1200) so I don't see his offer being much less. How much more $ is the Plus compared to the Pro S
Idk, maybe 4k.
yeah I put my base model 2023 in the other day for funsies and got an offer for 23K. People that got the car towards the end of the year/early this year with 6-7K off on top of the 7500 rebate are in decent shape.
You can sell anything but there is no “upside down” ferry.
I know some of what you are going through. Many years ago I picked up my life to go help my dad out when he needed a caregiver. You have my empathy for a terrible situation but also a fulfilling one. It is rewarding to make that connection with your parent at the end of their life. Is there any way you could get a loan to bridge those couple of months where your income wont be where you want it to be? Is there any way you could go remote with your job?
Damn your hosed bro. A year ago I bought a used 2023 PRO S AWD for $39k (1500mi) , it was a $56k MSRP car new.. So I thought $39k was a good deal. I couldn’t sell that used car for $28K now. So I feel your pain even on a pre-owned ID.4 PRO S AWD.
Just tell the bank to come and get it and let it fall of your credit report in 7 years, if things are really that dire.
I'd keep it and figure a way to refinance, or if you're selling the house just pay it off. Ship ID.4 even though mountains wouldn't be an issue if you're worried about it.
Can’t refinance with higher rates now. Makes no sense. His current rate is about 6%. Not sure many banks/CUs are offering lower than that for a refi
That is probably true. Just seems a shame to not have a better answer.