Question/advice selling old and buying new

[Rock Crawler]

So, my truck is built and hopefully will be on its way to MD soon. I currently have a 2020 Ram Laramie that I will need to sell before getting my new 2022. I’m concerned about the effect this will have on my credit scores. If I sell, and then pay off my current truck, it will effectively “close” that account. I’m wondering if this will lower my credit score. I’m currently in the lower 800’s and want to keep it that way for financing my new truck. My concern stems from a past experience with a similar situation.

Years ago, when my father passed away, he had an Amex Gold business card that he had since 1984. When I called to cancel the card, they said I could just take over the account and keep all the “credit history”. So, essentially it was now a card in my name with over 20 years of responsible use. This really boosted my credit scores fairly quick. Well, after having the card for a long time, and not using it much, I decided to get rid of it because I was tired of paying the yearly membership fees. Little did I know how bad that decision would be, as I was not real credit wise back then. Well, my credit score instantly dropped almost 100 points. I was shocked.

Now, my other issue. I’m also concerned that having the current truck (not paid off), while I’m trying to get financing for a new one, will hurt my chances of getting the best financing. I’d really like to get the 0% for 48 months that is currently available. I’m just trying to figure out the smartest way to do this. Am I overthinking this?

 

[Aseras]

Score will go down when you close it and it'll last 1-2 months. Shouldn't be anything big though, not more than 5-10 points. Pull credit for finance before you close it. approvals are good for 30 days usually and you can apply to as many banks as you want for a week or two without any further credit hit, it all counts as one pull when shopping for the same credit. If you've got several paid auto loans anything over 720 is pre approved for anything from just about anyone at best rates. I've always gotten a preapproval from a local credit union, even if I never intend on using them, just having it is enough to make bargaining easier than just calling a bluff.

resale is dropping on trucks right now, quite a bit in places. Did you ask MD about trade value? Did you consider the sales tax implications if you trade ( only pay tax on difference ) vs what you'd get private ( have to pay tax on entire price of truck ) but you usually can get more. If you toss your vin into vroom, carvana and carmax see what they offer vs MD.

Also Amex used to reinstate you and your credit history ( member since XXXX also report onto credit report ) if you got a new account. I don't think they do anymore after too many credit hacker forum people started farming authorized users that way.

 

[OldMarine]

umm...you're not going to like this, but with all your worrying about credit scores and financing terms....you should of just kept the 2020 and enjoyed life a little more. To each his own though, and I hope you enjoy the new truck!

 

[Rock Crawler]

Score will go down when you close it and it'll last 1-2 months. Shouldn't be anything big though, not more than 5-10 points. Pull credit for finance before you close it. approvals are good for 30 days usually and you can apply to as many banks as you want for a week or two without any further credit hit, it all counts as one pull when shopping for the same credit. If you've got several paid auto loans anything over 720 is pre approved for anything from just about anyone at best rates. I've always gotten a preapproval from a local credit union, even if I never intend on using them, just having it is enough to make bargaining easier than just calling a bluff.

resale is dropping on trucks right now, quite a bit in places. Did you ask MD about trade value? Did you consider the sales tax implications if you trade ( only pay tax on difference ) vs what you'd get private ( have to pay tax on entire price of truck ) but you usually can get more. If you toss your vin into vroom, carvana and carmax see what they offer vs MD.

Also Amex used to reinstate you and your credit history ( member since XXXX also report onto credit report ) if you got a new account. I don't think they do anymore after too many credit hacker forum people started farming authorized users that way.

Thanks for the info and suggestions. I sent Sandi an email asking about trade in value and I’m still waiting to hear back. Checked out Vroom, Carvana and Carmax and got quotes between $37K - $43K.

 

[Rock Crawler]

umm...you're not going to like this, but with all your worrying about credit scores and financing terms....you should of just kept the 2020 and enjoyed life a little more. To each his own though, and I hope you enjoy the new truck!

I’m not really worried, I am just seeking advice from those who have been in the same boat I’m in. I don’t want to make the wrong decision and hurt my chances at 0% financing. As far as keeping the truck, I just can’t do it. It may sound trivial, but I can’t live with this short bed anymore. I’ve never had one before, and now I know why.

I was in a crunch to buy a vehicle when I bought it because my previous truck was totaled in an accident, due to a moron not paying attention. I tried to find a standard bed, and the closest one anyone could find, with the features I wanted, was over 1,000 miles away. It was going to cost a lot to ship and was going to take too long. So, I just bought it. I had to have transportation. Was it a good decision? In hindsight, no it was not. And I’ve regretted it ever since. But, with current used trucks selling so high and MD getting me an incredible deal, it just seemed like the right time to get it done.

Anyway, I’ve never been the person to buy vehicles often. I enjoy buying something, customizing it to make it just the way I like, and just driving it. I had my previous truck for 14 years and would have driven it forever. I had my second motorcycles for 12 years. I’m not into buying new vehicles every few years or so. This is just a unique situation for me.

 

[Mountain Whiskey]

So, my truck is built and hopefully will be on its way to MD soon. I currently have a 2020 Ram Laramie that I will need to sell before getting my new 2022. I’m concerned about the effect this will have on my credit scores. If I sell, and then pay off my current truck, it will effectively “close” that account. I’m wondering if this will lower my credit score. I’m currently in the lower 800’s and want to keep it that way for financing my new truck. My concern stems from a past experience with a similar situation.

Years ago, when my father passed away, he had an Amex Gold business card that he had since 1984. When I called to cancel the card, they said I could just take over the account and keep all the “credit history”. So, essentially it was now a card in my name with over 20 years of responsible use. This really boosted my credit scores fairly quick. Well, after having the card for a long time, and not using it much, I decided to get rid of it because I was tired of paying the yearly membership fees. Little did I know how bad that decision would be, as I was not real credit wise back then. Well, my credit score instantly dropped almost 100 points. I was shocked.

Now, my other issue. I’m also concerned that having the current truck (not paid off), while I’m trying to get financing for a new one, will hurt my chances of getting the best financing. I’d really like to get the 0% for 48 months that is currently available. I’m just trying to figure out the smartest way to do this. Am I overthinking this?

Really, you are over thinking it. People buy and sell cars all the time. I mean if you are buying a house, don't do this a week before closing. A truck? Well it's done every day. Are you doing a trade in? You bypass any taxes that way so it may be worth it. It is also just easier. The dealers know this too. I don't even know how you sell a car privately that the bank owns. I sold my Jeep to one of the big online buyers. They sent a check to the finance company and a balance check to me. Easy enough.

 

[magnetized]

Aaron came within $1000 of what Carvana offered me for my old truck, which was considerably more than other dealers were offering. Maybe could have gotten a bit more selling pp, but I took his price and ran, especially considering the tax implications and work associated with trying to sell it myself. Was very happy with all aspects of the deal.

 

[Rock Crawler]

I am considering trading it in just to make it simple. I’m waiting to hear back from Sandi at MD to see how much the will give me for my truck.