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I am moving to a state that will require me to purchase a 4wd vehicle. I currently have a vehicle financed, in good standing. Next month I will have the funds to either:

 

1) Payoff my current car and finance the 4wd vehicle or....

2) Pay cash for the 4wd Vehicle

 

I heard the longer I pay on time on an installment loan the better. Would starting a new loan be less beneficial than just continuing the original?

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An older installment loan with a low balance relative to the original loan amount is worth more to your score than a new installment loan, plus a new account will pull down your score.

 

Which state requires AWD?  We get our share of snow and ice in the winter, and my RWD sedan is fine 99% of the time.  Some winters I'll have groceries delivered once or twice, but that's as much laziness and hatred for cold air as much as anything else.

 

Just wondering if your AWD requirement is like the current wave of new parents who think the first child creates the necessity for a 3-row SUV.  😛 

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On 9/9/2021 at 10:58 AM, Deacon328 said:

Yes. At about the same time I will be purchasing a home. I'm not familiar with credit scores and what affects them enough to determine if one or the other would hurt or help my credit score. 

 

Where are your scores now?  DW just paid off her lease and opened a new loan for a car.  Minimal to no imapct on scores whatsoever (all 790+).  You can obtain new credit when you are trying to get a mortgage, just be prepared to answer questions about it during the process and be cognizant of how the new loan obligation will impact your DTI ratio.  With financing so cheap these days it makes little sense to use all that cash (which you will need for closing, BTW).

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23 hours ago, ThomasRMorrison said:

Wise shaman once told me "Never finance a depreciating asset. Pay cash" :)

And yet, in the current climate, some vehicles remain an appreciating asset.  My most recent acquisition is generating offers at a few grand over what I paid.  If it were not the unicorn that I wanted new in 2018, I might be tempted...

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  • 3 weeks later...
On 9/22/2021 at 7:28 AM, centex said:

And yet, in the current climate, some vehicles remain an appreciating asset.  My most recent acquisition is generating offers at a few grand over what I paid.  If it were not the unicorn that I wanted new in 2018, I might be tempted...

 

Long term, don't count on vehicular appreciation.

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On 10/8/2021 at 2:44 PM, ThomasRMorrison said:

 

Long term, don't count on vehicular appreciation.

As consumer choice in vehicles with ICE continue to dwindle, some will be sought for many years to come...this EV nonsense being shoved own the public throat does not work for a lot of the population. 

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6 hours ago, A Credit Ed said:

Oh how I love my EV.  I will never ever never-ever buy an ICE car again.

Yes, I have a garage where I can plug in and I realize that people living in apartments have extra challenges charging.  Yes, it takes me about an hour longer to make a 600 mile road trip.

Good luck trying to do a Houston to Vegas drive at 85MPH and the A/C blowing or with the headlights on.  I made the first 800 miles in about 11 hours, stopping twice and back on the road inside of ten minutes each time.  And yeah, a big chunk of that drive DID have speed limits which have an 8 in front of them...

 

For as much driving as I do, you couldn't pay me to take one of those EV's currently on the market or even proposed for the next few years.

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