Anonymous
Anonymous asked in Business & FinanceCredit · 7 months ago

How long should I have a car loan for?

I have a loan on my truck but I am wanting to sell it to get something smaller. I haven’t had it that long though, I’ve only made 4 monthly payments on it. Would this hurt my credit? A friend said I should wait until I’ve had it for 6 months then sell it. Thoughts?

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  • B
    Lv 7
    7 months ago

    you should not be switching like this, it will cost you a lot of money to 'cancel' and re-loan.

    trading in a vehicle, is basically what you want to do, and for starters, the car will depreciate at least $1000 to $5000 on your 'refinancing'.

    Better to save up enough while you own the bigger car and refinance with a bigger bigger downpayment on the next car.

  • Who
    Lv 7
    7 months ago

    you cannot sell it without the permission of the people who loaned you the money

    so ask them

  • 7 months ago

    You should have it until you have paid it off, in full.

  • Never
    Lv 7
    7 months ago

    You are probably unable to trade after only having it for 4 months. And if you could, you would lose thousands.

    My only car loan was 36 months. I paid it off in 19 and I never had another one and never will.

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  • Anonymous
    7 months ago

    The length of the contract you signed

    24 ,36,48,60 months ? ?

  • 7 months ago

    If you've only made 4 payments you are almost certainly "upside down" on your loan, which means you owe more that your car is worth. If you sell, you'll have to add your own cash to fully pay off the loan. Not good to be selling or trading so soon.

  • 7 months ago

    You should keep it as long as possible. But you have no intention of doing that , so sell it as soon as you have enough money to pay off the loan.

  • 7 months ago

    You can sell it anytime you choose. You won't get as much for it as compared to what you paid for it. Don't worry about credit scores. They only mean you borrowed money and paid some of it back.

  • A.J.
    Lv 7
    7 months ago

    I would be less concerned about the credit rating and more concerned about the process to sell it and large loss you can expect to take.

  • .
    Lv 7
    7 months ago

    Trading in a vehicle you're making payments on is likely to put you upside down on your loan. It's generally a bad idea.

    • FlagMichael
      Lv 7
      7 months agoReport

      True. The loan usually gets right side up in the next to last year.

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