topic Re: Pay off existing car loan (3 months left) before applying for new car loan? in Auto Loans

Pay off existing car loan (3 months left) before applying for new car loan?

eliteproxy — Fri, 16 Sep 2022 13:29:34 GMT

I have a Tesla that I need to have financing for by end of the month, (49k) and I have a BMW loan that is 3 months awak to paying off $1200 left to pay.

Should I pay off the 1200 and then apply for the new auto loan?

I have no other debt credit over 800. I am with NFCU as well as PNC Choice Client.

Which lender will give me the best rate and terms for excellent credit?

Re: Pay off existing car loan (3 months left) before applying for new car loan?

pizzadude — Fri, 16 Sep 2022 16:38:10 GMT

From a FICO score perspective it won't help you to pay off the auto loan now, and could possibly drop your score if it's your only installment loan so I'd be inclined to just leave it alone for now.

For your new car, I'd start with your currently creditor(s) and ask them where their best new vehicle rates are currently. Rates are heading up so you may have to call them for specifics / qualification factors.

Re: Pay off existing car loan (3 months left) before applying for new car loan?

cashorcharge — Mon, 19 Sep 2022 22:22:22 GMT

From experience I can tell you that once BMWFS received your payoff, your CB's will update in 2 weeks with the Closed Loan and just like @pizzadude mentioned, my score dropped slightly as a result.