Auto Loan Strategy - Second Car

Anonymous — Tue, 06 May 2014 21:55:07 GMT

This month, I would like to purchase a used Audi A7 with a $50k purchase price and an engagement ring for $18k and have a few questions. I currently still owe $24k on my soon-to-be fiance's Mercedes E350 and have a $330k mortgage (with over $250k in equity) - credit cards get paid in full each month. Our combined income (we have merged finances) is approx. $225k.

I had one item marked as in collections (for years that I finally noticed last month) that was a mistake and it was "reported as removed" from my report on May 2, 2014, but it showed up when I bought a report from myfico.com today. Question: How long does it take for my credit score/report to update? As of today, my EX score was 699 - I assume mostly due to the collections because I have otherwise never missed or been late on any payment.

I have approximately $30k to put down on the A7. Questions: Should I pay off the Mercedes and take a larger loan on the A7? Where should I start my search for interest rates?

I am also purchasing an engagement ring this month for a total purchase price of $18k. While I could pay it off, it would deplete my available cash below a comfortable level. I was able to secure 18mos interest free financing. Question: Should I purchase the car first or the engagement ring first?

All advice is greatly appreciated.

Re: Auto Loan Strategy - Second Car

StartingOver10 — Wed, 07 May 2014 21:16:56 GMT

Buy the car first. Use your down payment for the new purchase not the existing car loan. Get financing thru a CU on the car.

Then buy the ring after the car purchase and financing is finalized.

Congrats.

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Auto Loan Strategy - Second Car

Re: Auto Loan Strategy - Second Car