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Dropping down to one household vehicle/Looking for larger SUV

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Anonymous
Not applicable

Dropping down to one household vehicle/Looking for larger SUV

We are in the process of selling my truck via Carvana and will be completing that transaction tomorrow which means it will show as paid off by middle of next week.  I work from home primarily so we really don't need a second vehicle.  My wife's vehicle is a midsized crossover and we would like to upgrade this to a full size SUV like a Tahoe.  The local dealers are doing some really good deals that end tomorrow night.  When they go to get us approved (like with GM Financial so that we get all of the rebates), is there any way to prove to them that we only will have the one car loan total?  I'd hate to lose out on the rebates and discounts for Memorial Day that end this weekend.  We can easily absorb a larger car payment with dropping down to one vehicle. 

Message 1 of 6
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Loquat
Moderator Emeritus

Re: Dropping down to one household vehicle/Looking for larger SUV

Hi @Anonymous   Believe it or not, depending on your income and credit profile, having another open auto loan may not even be a factor.  I used to be a Finance Manager some time ago (back when Pontiac was around) and I, on my occasions, worked deals with more than one open auto...sometimes with several open autos.  

 

If your profile is decent, scores are good, and your history speaks for itself, you may not even have anything to worry about.  Should it become an issue your Finance Manager can and will advocate for you if communicating the current open auto is even an issue.  

 

Best of luck to you and nice choice on the Tahoe.  My wife still loves her '16 Yukon Denali.  

Message 2 of 6
Anonymous
Not applicable

Re: Dropping down to one household vehicle/Looking for larger SUV

Just bring a copy of the paperwork from Carvana and the finance guy will make sure you get financed.  They only get paid when they sell so they will make it work.  Personally I never walk into a dealership without a preapproval from a credit union because that is the best way to keep them honest on the interest.  Most people are applying for car loans with previous loans already showing on their reports so as long as they know what car is being traded etc you should be fine.

Message 3 of 6
Loquat
Moderator Emeritus

Re: Dropping down to one household vehicle/Looking for larger SUV


@Anonymous wrote:

Just bring a copy of the paperwork from Carvana and the finance guy will make sure you get financed.  They only get paid when they sell so they will make it work.  Personally I never walk into a dealership without a preapproval from a credit union because that is the best way to keep them honest on the interest.  Most people are applying for car loans with previous loans already showing on their reports so as long as they know what car is being traded etc you should be fine.


If one qualifies and the captive is offering 0%...if so I'd happily walk away from a credit union deal.  

Message 4 of 6
pinkandgrey
Senior Contributor

Re: Dropping down to one household vehicle/Looking for larger SUV

As others have said, assuming your income is good, having two loans at the same time probably wouldn’t be a problem. As to your actual question, I bought a new car before my current loan reported as being paid off. My income wasn’t huge by any means and all the dealer requested was that I send in a Proof of Payoff letter once I got it. I guess they trusted me enough that the loan was paid off lol. Plus, they want to sell cars. 

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Message 5 of 6
Anonymous
Not applicable

Re: Dropping down to one household vehicle/Looking for larger SUV


@Loquat wrote:

@Anonymous wrote:

Just bring a copy of the paperwork from Carvana and the finance guy will make sure you get financed.  They only get paid when they sell so they will make it work.  Personally I never walk into a dealership without a preapproval from a credit union because that is the best way to keep them honest on the interest.  Most people are applying for car loans with previous loans already showing on their reports so as long as they know what car is being traded etc you should be fine.


If one qualifies and the captive is offering 0%...if so I'd happily walk away from a credit union deal.  


Of course, but as you know most don't qualify for 0% and keeping the dealers honest by having a preapproval never hurts.  If you can't get 0% with factory subsidies there are times where they can beat a good credit union for less than prime credit customers but dealers have become very dependent on their kickbacks from finance companies so its hard to know what your qualified as their system is not transparent as a general rule.  

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