Best timing for new car loan - need help

[Mskaykay12]

Hello all, 

I'm in the market for a new car after my car has been totaled. The insurance will be giving me a check that I will use to pay off the loan of the car. My concern is that #1 this current car long is my oldest trade line and if I am correct, this may hurt my score. Also, right now i'm being quoted really high interest rates but will it be best to wait for the vehicle pay off to show a paid in full account (current loan has several late payments and i'm currently late). I must note, that I can not be without a car for too long. 

so should I. 

1. buy the car now with the interest rate i'm quoted

or 

2. wait until the loan is showing paid in full on my current car and then check rates again. 

thanks!

[DaveInAZ]

If you can wait until the loan is showing paid in full on your current car that's better and easier. But if you really need a car or it will be a pain to wait go ahead and take the higher interest, car loans can be easily & quickly refinanced, and once your current loan shows paid in full you should get much better rates. I refinanced my car loan in 2017 in just one month when the dealer pushed my loan to Wells Fargo which I told them I did not want to do business with. 

[Remember0]

Well once the car loan is paid off from the insurance proceeds, typically scores go down not up (lates remain on file). IE, I suspect you would still get a high APR.

Can you help provide a bit of context OP? What are your FICO scores? Why are they what they are (ie, what is the nature of your baddies other than the late auto payments)? Finally who has quoted you a high rate thus far and what rate have they told you, exactly?

[Girlzilla88]

Try with your CU and see what rate they would offer for you it is easier to get approved for New than preowned vehicles and worst case scenario you can refinance in as little as a year for the best rate switch do NOT do it after a month or 3 or 6 you want to give it a good gap so your hard pulls won't do as much damage after you have hit the mark from doing the original pull/loan.     If you have already got a quote don't wait more than 30 days if possible no more than 14 days and see what a CU would offer or who you prefer.     Then go with the best option at that time since you need a car now instead of waiting one to two months for it to reflect

[LakeLife]

I was in this position once, but it was more of a "couldn't find anyting I wanted right away", so I bought a $2000 beater and drove it until Fall when I knew the prices and rebates would all be at their best.  I work on cars as a hobby and fixed a few things up with the beater and actually sold it for more than I paid for it after driving it 6 or 7 months.