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Wanting to replace my current financed car


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I am wanting to replace my current financed car, and I was wondering if what I want to do is possible.


In order to avoid getting ripped off by a dealership, I was hoping to sell the car privately. I will owe about $18k on it. I am looking to finance approximately $35k or so of the replacement used vehicle (with a $3-4k downpayment).


I'm a little confused about what the logistics of this would be. I think what I would like to do is buy the new vehicle first, then worry about selling my current vehicle. I don't anticipate having negative equity on the old vehicle. If I buy the new vehicle first, I will need to apply for a second car loan of about $35k, while already having an existing car loan of $18k or so. Will this be a problem, and will it result in me getting a higher interest rate on the loan or flat out rejected?


My credit score (Equifax, is that FICA?) is almost 800 but I have only had credit history for approximately 7 years. My monthly income is about $6000 pre-tax. I don't have any other debts (no credit card balances, student loans, etc.) and my monthly rent is about $800.


Any advice on this matter? Cars are my passion and the cost of them serves a dual purpose of transportation and hobby/entertainment.

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It looks like your credit union has some good rates! 1.49% for 60 months. I would go to your credit union and get approved before you go to a dealer. It will make your trip to the finance office much faster when you buy from the dealer.


One note. Try to avoid letting the dealer sales person/sales manager know that you already have financing lined up. Sometimes they will deal a little more if they think they are getting the financing on the back end.


If you can get approved through your credit union you can buy the new car first and then sell your existing car privately with no issues that I can see.


Check truecar.com before you go to the dealer. It will give you some good pricing statistics for make and model in your area. (I have no affiliation with trurecar.com)


One tactic I used in buying our car about 3 months ago was to email all of the Nissan dealers in my area before going in. I told them the make, model, and trim level I was looking at. Then I had them email a quote with their absolute best price. You can then take the lowest price quote and email it to the other dealers to see if they can beat it. Big time saver.


Good luck!

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Thanks. I am actually trying to buy a used car. But I guess my bigger question was whether or not someone in my situation (I'm 25) would have trouble getting approved for a $35k car loan, given my existing $18k car loan. Would it damage my credit?

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I don't think you will have trouble getting approved for the loan even though you already have one. I got approved for $40k for my new car and I also had DH's truck in my name due to his bad credit with a balance of about $23k. My take home per month at the time was about the same as yours and I have credit card and student loan debt and a mortgage of $900. The bigger question is are you comfortable making both payments until you can sell your old car?

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Thanks for the info. I could do it, but it would be a little bit of a stretch. However, I doubt it would be too hard to sell my old car (2012 Ford Mustang) since it is still relatively new. Also, usually when you finance a car, the first payment does not occur for 45 days or so, so I think that would be plenty of time for me to sell my old car.

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You have to have the income to sustain two auto loans if you are trying to get another car before selling your current ride. You need to start working on selling the car and getting approved for a new loan with the contingency that you won't be buying the new car until the old one sells. Get an offer from Carmax and a Ford dealer in your area based on them buying your car and use those numbers as your bottom dollar.

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