How to Escape Negative Equity on Your Car Loan with a Chevrolet EV Lease

Being stuck with negative equity on a car loan can feel overwhelming, especially if your credit has taken a hit. Negative equity means you owe more on your car loan than the car is worth, sometimes called being “upside down” or “underwater.” Things can get worse if you roll that negative equity into a new loan, leading to higher rates and longer repayment terms.

Many people find themselves buried in debt, which can result in repossession or even personal bankruptcy. If you can’t afford to keep your current car and finish paying it off, switching vehicles might leave you in an even tougher spot. For example, if your credit score is around 650, financing a new car and the negative equity could result in a loan with rates over 10% for six years.

But there’s a potential solution: a Chevrolet EV lease.

Why a Chevrolet EV Lease Can Help

GM Financial offers competitive money factors (low interest rates) on leases for eligible EVs.

Eligible EVs include:

• 2024 and 2025 Blazer EV
• 2024 Equinox EV
• 2024 and 2025 Silverado EV

This program allows you to bundle negative equity into a short-term lease at a much lower rate than traditional financing.

Example: Leasing a 2024 Blazer EV

Here’s how it works using the 2024 Blazer EV as an example:

1. Base Lease Terms:
   • Monthly payment: $379 (24 months, 10,000 miles/year, excluding taxes and title).
   • Vehicle price: $48,972 (down from a $54,595 MSRP).
   • Money factor: 0.00099 (equivalent to 2.38% APR).
2. Impact of Credit Score:
   • At a 620 credit score, typical financing would be over 10%.
   • With GM Financial’s A1 tier for conquest customers, the rate drops to 2.38% APR.
3. Rolling in Negative Equity:
   • GM Financial allows up to 110% of the MSRP to be financed.
   • This means you can add up to $11,000 of negative equity to the lease.

Reducing Your Monthly Payment

Conquest and membership incentives can significantly lower your lease payment:

• $1,500 Conquest Incentive: Reduces the payment from $379 to $315.03.
• $1,000 Costco Member Rebate: Drops it further to $272.37.
• For 15,000 miles/year: Payment adjusts to $359.44 with both incentives.

The Real Benefit: Clearing Negative Equity

If you roll in $10,000 of negative equity:

• Payment with both incentives increases to $698.94 for 24 months.
• At the end of the lease, your negative equity is gone, as long as you stay within the mileage limits and return the car in good condition.

Why This Works

A Chevrolet EV lease lets you:

• Finance your negative equity at a low effective rate (2.38% APR).
• Spread payments over just 24 months.
• Drive a new EV at a reasonable cost while solving your debt problem.

If you’re struggling with negative equity, this could be a way out while upgrading to a modern, eco-friendly vehicle. It’s a short-term solution with long-term benefits for your finances.

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