QuestionI would like to buy 2 cars in a short period of time. My reason for this is I need to move from a truck to a van (expanding family) and I would like to cash out the equity that I have in the truck for other purposes. Truck value ~20K. Car value ~ 8K.
I'd like to sell my truck privately and take a small portion of the proceeds for a downpayment on a new vehicle. Then, over the next few months, I'll trade in my car for the van (when the financing deals are to my liking). Does buying two cars in that short period of time cause havoc to my credit? Will I be eligible for the second loan at the preferred rates I am used to?
AnswerHi Kurt,
You can privately sell your truck, but getting someone to purchase a vehicle from you without any warranties will sometimes cause more problems in the future for you if something goes wrong.
I would suggest trading your truck, and instead of having the dealership using all you equity from your truck, to use a certain amount and cut you a check back for the balance. They will do this.
Also, if your credit is good...adding another vehicle will not be an issue if you can prove that you have the income to cover your living expenses, revolving credit accounts, etc.
You can still negotiate for the subvented rates that are being offered. In other words, if the manufacture is using low rates, then they can be made available to you. Work the finance people to get you a better, higher tier level call back. It can be done.
Good luck and I hope this helps!
Doug
