Established Contributor
Posts: 731
Registered: ‎08-12-2011
Re: How long to wait before financing a second car?
[ Edited ]

I may be wrong here, but paying off the first car loan in full makes more sense to me as long as there are no prepayment penalties. You will have a paid satisfactorily auto loan, one completely positive tradeline wno chance of derogs, no chance of repo on one vehicle, only one auto payment to worry about, no outstanding auto loan debt hurting your DTI, and your co-signer will be in the clear on first loan. With one closed positive auto loan and 720+ scores, you might not even need a co-signer on the next loan.