“Dear Steve,
Have a upside down car sitting in my garage and cannot decide which way is best to get rid of it? I have a ML 350 that I am leasing for $674 per month. My lease is up 3/15. My husband has a Jeep Wrangler that we pay $405 per month. He owes $21,000 on it.
He had a spine injury is unable to drive. The Mercedes Benz dealer has offered to take both cars and put me in a C clas MB for a three year list at $700 per month. Car max has offered to buy the Jeep at $17,500.
Should I sell carmax the jeep and come up with the negative equity and keep the ML for another two years or should I keep the negative $ in my savings and go with the MB offer?
Evon”
Dear Evon,
Thank you for your question.
It’s amazing how such a simple question can be so complicated. Being both a Jeep owner myself and having had a Mercedes I’m completely torn. My Mercedes was the best car I ever owned. I still moan about having to leave it in England when I left.
Jeep Wranglers are fun vehicles to drive but they do have some significant limitations. They can be rough, cold and not have a lot of room. Not the best vehicle for someone that just had spine surgery
The Mercedes ML 350 on the other had has a good reputation as a solidly built luxury SUV and it has about as much room as a Jeep Cherokee.
The deal the Mercedes dealer is offering you would negate you having to come up with the cash to pay the negative equity but it puts you deeper in a lease payment and leaves you spending more than you need to. In essence you wind up financing your negative equity for an entry level Mercedes.
If you are happy with the ML 350 then my opinion would be to stick with that, sell the Jeep to CarMax and pay the negative equity to CarMax.
Before the comments even come, let me say, some will say you should get rid of the Mercedes all together and get a less expensive vehicle. But that’s really only a decision you can make based on your current family finances and needs.
If you can easily afford it and love the ML 350, stick with that is my opinion.
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