I am wanting to replace my current financed car, and I was wondering if what I want to do is possible. In order to avoid getting ripped off by a dealership, I was hoping to sell the car privately. I will owe about $18k on it. I am looking to finance approximately $35k or so of the replacement used vehicle (with a $3-4k downpayment). I'm a little confused about what the logistics of this would be. I think what I would like to do is buy the new vehicle first, then worry about selling my current vehicle. I don't anticipate having negative equity on the old vehicle. If I buy the new vehicle first, I will need to apply for a second car loan of about $35k, while already having an existing car loan of $18k or so. Will this be a problem, and will it result in me getting a higher interest rate on the loan or flat out rejected? My credit score (Equifax, is that FICA?) is almost 800 but I have only had credit history for approximately 7 years. My monthly income is about $6000 pre-tax. I don't have any other debts (no credit card balances, student loans, etc.) and my monthly rent is about $800. Any advice on this matter? Cars are my passion and the cost of them serves a dual purpose of transportation and hobby/entertainment.
From the information that you provided about your credit, income and debt you should have no problem qualifying for both car payments. I don't even think you will get a higher interest rate. I am not a expert with auto loans, but everything you have told us seems like a green light here. Thanks! Heather with BoostMyScore.NET
Wow, since you are such a car buff you think you'd know by now what dealerships to do business with that won't rip you off! If the state allows you to pay tax on the taxable price trade difference you could save on sales tax by trading your car in unless you live in one of a few states that don't collect sales tax on car purchases. Unless you have a buyer for your old car, good luck with advertising, showing and every other aspect of selling a car yourself.
I would sell the old card first before worrying about financing the new car. That's what I've always done in the past, and it's worked out well. What kind of car are you looking at buying? Also, make sure you're looking at your true FICO scores before you apply for the new auto loan.
