QuestionHello, I recently purchased a 04 Jeep Liberty 2 months ago. And I'm trying to build my credit and I want to trade in the Jeep for a 08 Honda next year do you feel like that is to soon to trade in or how long should i wait?
AnswerHello Maria,
There are alot of variables with your situation; How much did you pay for the car, how much money did you put down, what do you owe, did you buy any extended warranties or any other products from the dealer?
You have to be careful building credit. You should keep that loan open for at least 15 to 18 months, I have seen it over and over people pay off loans to soon and there credit score will go down, why, I don't know.
You need to go to Edmunds.com and find out, by zipcode, what the average trade-in is on your Jeep and they will also tell you what private sellers are selling cars like yours for. Since your going to wait till next year, you might as well try to sell it on your own. Most newspapers have a "List it till it Sells" special, you just have to discount it so much every couple of weeks, so start high.
People don't know this but lets say you owe $15,000 on your vehicle and you can sell it for only $14,000, you work something out and take there $14,000 and add a $1000 from your pocket and pay it off.
I know you said next year and that's good you have a plan but you can find some of the best deals in November and December, food for thought. Dealers give the largest discounts at the very end of model year change, when they have like only ten or so left, they just want them gone. You just drive by and keep a watch on how many they have left. Maria if you can give me more information about your loan and what your zip is I will look into this further and see if more can be done. Thanks Danny
