Hi folks I entered upside down in my 2011 LS 460 a year ago and even when I can still make my payments I have buyers remorse and have thinking in go into a lease of a loaded 17 ES 350 for 3-4 years. I still have 5 years to go in my LS. I always liked the LS and was thinking in getting a 2013 or 2014 LS after 2 years in my loan . What do you guys think? Should I wait or trade in for a 17 loaded ES now?

 

I would much rather have a 2011 LS than a 2017 ES.

What would be the purpose of your trade? You're upside down, you would remain upside down

 

Sounds like you need to get rid of the LS and move the negative equity to a credit line to pay off. Pick up an old Civic or Corolla and drive it until you pay off the credit line.

 

Having been in a few ES350 loaners - there is a big compromise you'd be making in terms of ride quality and overall build. Not that the ES350 rides bad (it is built on the Avalon platform which in itself is a nice highway cruiser) but your LS460 would ride better and be more "stoutly" build on the road compared to the ES350. I'd think financially you'd still be better in the LS460 as well (MSRP for a fully loaded Made in Kentucky ES350 would be north of $50k?).

 

If you're going to drive an old Corolla and pay off a credit line, why not drive your o,d LS and pay the negative equity of on it?

5 years it's paid for, it'll be righted before then. Trading it doesn't make sense to me at this point.

 

What do you mean with "it'll be righted before then"?

 

The steepest part of the depreciation curve of your LS is past, you will pay it off more every year than it will depreciate. It will cease to be upside down before the loan is paid off in 5 years.

 

When you say "and even when I can still make my payments", are you saying that you are stretching to make the payments and sometimes missing a payment?

 

very bad idea man

I'm assuming you have made a bad business decision, but try to see the positive, you got a very high quality car that 95% of people will never own.......enjoy it.....open the sunroof.....blast the music...make the best of it .

If you have buyers remorse now you will have buyers "nausea" after swapping to an ES, don't bother.

 

No. I meant I can afford the payments but I was thinking more on a way to get out of the loan and save some cash in the long run. I want to thank everyone who has given advice here I appreciate it very much. I'll keep the car for now and probably in the future 2-3 years from now will reevaluate the situation. It has only 36K miles in it so it has still a long life ahead.

 

Ok I get it. It makes a lot of sense. Thanks

 

That's the thing, you won't save any cash. If you are upside down you will have to pay off that negative equity or roll it into the ES lease, you will pay off the same money one way or another.

 

Why not keep the 2011 and enjoy it? It's a great great car. I've driven 350's. Not for me. If I had to drive one of those I'd have buyers remorse. No offense to 350 drivers. This is just my personal opinion.

 

Can someone please help me understand how you become upside down on a 2011? No sarcasm intended, this is a genuine question. I understand what upside down means, the car's value is less than what is owed on the loan. I can see the upside-down situation possibly happening if the car has either been in an accident or the loan was super long. Are those typically the only scenarios? I would think a 2011, purchased at the right price, financed over 3 years would still be on the upside in value, yes/no? Thank you, just trying to learn something.

As for the dilemma at hand, I would keep the 2011 LS as well. I have not driven a 2017 ES but did test drive a 2013 last year and even I prefer our 2006 LS 430 over the 2013 ES. The ES is a fine car and very spacious having shared the Avalon platform but once you grow accustomed to the level of comfort and refinement of an LS, and its V8, it is hard to find another car on par. Besides, wouldn't a fully loaded 2017 ES be in the same price range as a 2013 or 2014 LS SWB? If you're going to ditch the 2011 LS, I would go with a 2014 LS over a 2017 ES.

 

Buying a car above it's market value is the easiest way to wind up upside down in an auto loan. This typically happens at "Buy-here, pay-here" lots that advertise themselves as "No/Bad Credit? NO PROBLEM!!!" and finance at insane interest rates (>15%). This is easily avoidable with the appropriate research and haggling (assuming no credit issues), but judging by the decision being considered in the OP I doubt this was done.

What rate is your LS financed at? You may be able to recoup some funds monthly if you refinance for a lower rate through a local CU or other such institution.