Valued Member
Posts: 53
Registered: ‎01-04-2008
Re: I want to sell my car and get another car, Will it hurt my credit ? MORE INSIDE
[ Edited ]

firstinlastout wrote: I owe 19K on my car. It's a 2005 GTO 6.0 V8 with 400 HP. Due to the gas prices with no relief in sight, I want to downsize to a Toyota Yaris. I owe 19K on the car and according to edmunds.com, the dealer trade in value is 16K. That's 3k that I owe that will be tacked onto the price of the Yaris. I can get a pre-owned 2007 Yaris with 9k miles for 12k. So 12k + 3K would be 15K. The amount of car debt I owe would drop to 15k. Here is the catch..I am trying to pay off credit card debt and improve my credit score as much as I can since I am going to buy a house in December/January. Should I wait until then to buy my Yaris ? Or should I buy it now ? How will buying another car...but effectively lowering my loan amount effect my credit ? Thanks !
Really it depends on your credit scores. Yes you can roll the 3k into a new loan but not the smartest thing to do. You're basically upside down on the loan. Do you have the 3k by chance? Your credit score will take an impact from the inquiry but will get better soon with on-time payments. As far as the purchasing the house, again we need to know your scores, any baddies? any lates? a bk?

Message Edited by grant11 on 05-14-2008 08:39 PM
On 3/28/08 TU705 Ex709 Eq651