Negative Equity

[AdamEk]

Got my invite. Unfortunately after getting valuation for my 2024 Model Y (from Rivian and Carvana), I'm in negative equity on it right now. Before turning my $100 refundable reservation into the $500 non-refundable order deposit is there a way to get pre-approved for the loan from Rivian?

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[Jeremy3292]

You should check EV Auto and Plug motors. They usually give much better offers.

 

[JacobAZ]

Got my invite. Unfortunately after getting valuation for my 2024 Model Y (from Rivian and Carvana), I'm in negative equity on it right now. Before turning my $100 refundable reservation into the $500 non-refundable order deposit is there a way to get pre-approved for the loan from Rivian?

Chase is the bank doing the lending/leasing an approval for Rivian. So, you may want to go directly to Chase bank to see if you can get pre-approved.

 

[Josh X]

I'd highly suggest even if they approve you... you don't roll negative equity + finance the entire purchase on a $65,000+ out-the-door vehicle. I don't know how underwater you are but you can easily find yourself $20k+ underwater on the R2 if you sell it in a year or two doing it this way.

 

[drumminguy81]

I feel your pain, we were under water on our model 3, i have never had a vehicle that depreciated so fast. I financed my r1 with my local credit union, they are willing to finance up to 125% of the vehicle value. Luckily I was nowhere near that far upside down. and the total financed was still under the NADA value of the r1 we purchased (preowned) good luck, its a tough pill to swallow taking a hit like that.

 

[asellus]

are you asking for bad financial advice, or what is this thread

 

[TechDad]

are you asking for bad financial advice, or what is this thread

He's asking a simple question - "Before turning my $100 refundable reservation into the $500 non-refundable order deposit is there a way to get pre-approved for the loan from Rivian?"

Take a deep breath....

 

[hammick]

Crazy how fast things change. We drove our '21 MYLR for a year (8k miles) and then sold it to a KIA dealer who wanted it bad for 8k more than we paid for it. They still had it when muskrat tanked the tesla market. I'm guessing they dumped it for 20k less than they paid us. Serves them right for marking all their vehicles up during that time which is why they didn't earn our business.

 

[runwithscissors]

Leasing is the only way. These are glorified cell phones now that become obsolete so quickly. Wish they offered leasing on my Gen 1 back in the day.

 

[Josh X]

Crazy how fast things change. We drove our '21 MYLR for a year (8k miles) and then sold it to a KIA dealer who wanted it bad for 8k more than we paid for it. They still had it when muskrat tanked the tesla market. I'm guessing they dumped it for 20k less than they paid us. Serves them right for marking all their vehicles up during that time which is why they didn't earn our business.

Yep. When Tesla did those massive COVID-era price corrections in January 2023... a lot of dealers holding used Tesla's got burned BADLY. For the next 6-12 months, a lot of dealers were super lowballing on Tesla trades because they didn't want to take the risk.

 

[electruck]

easier to get pre-approved with your own lender than through Rivian.

 

[forestwalker]

Just pay down that jalopy before buying anything else, or finance the new vehicle without the trade and work on offloading it separately.

 

[Jeremy3292]

Yep. When Tesla did those massive COVID-era price corrections in January 2023... a lot of dealers holding used Tesla's got burned BADLY. For the next 6-12 months, a lot of dealers were super lowballing on Tesla trades because they didn't want to take the risk.

Not just Tesla. All OEMs. My wife test dove a RAV4 and they said $50k is the going price no questions. For an XLE low trim lmao. And people bought them in droves. Anyone who bought a car during that 1-2 year COVID crazy window definitely got hosed.

 

[Dark-Fx]

I don't think you will have an issue with a small amount of negative equity, but make sure you have gap insurance. Chase will still expect to be made whole if you total your vehicle driving it off the lot.

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