I have 2400 remaining on my current 21k auto loan, the car attached to that loan is no longer drive able to due major mechanical issues. It's 10 years old with over 125k miles so it's not worth paying thousands of dollars to get it fixed. I don't want to try to trade it in since I would be shocked if it has any trade in value in it's current state.
So I need to get a new car in the next month or 2, is it better to leave that loan as is and apply for a new car first, then pay it off after I get a new car or pay it down another 1k (1400 balance) and then apply and pay off the rest after I get the new car or fully pay it off prior to applying? The issue is my fico score is 590 and I don't want to drop from fair credit to poor. I've raised my score 50 points in the last year so I don't want to see all the progress go away especially when trying to get a new car. The last thing I want is another auto loan with a %24 interest rate for the next 7 years.
original posted by svatos40p to r/personalfinance on Mon, 22 Apr 2024 16:04:05 GMT.