Credit + car loan question

[acemcmac]

I have no idea how one would go figuring this out.... but.... here it goes.... no luck finding answers on the credit boards....

If you have exelent credit (790) and

Finance a car, $9000 in summer 03
Pay off the loan early in december 04 and finance another used car (keeping or selling first car=, undecided) at $15k

and then go new car shopping in mid 06-07 for a car (corrolla or scion equivalent?) that will have nothing to do with the previous 2, should you expect to get a worse interest rate than if you did not buy the car in december 04?

all bills always paid on time and in full with decades long track record.

 

[Vic]

No, except that market interest rates are likely to be higher by 07. I'm not even sure why you ask or if I really follow your question. Provided you have acceptable income to repay your obligations, car lenders don't charge higher rates for having more than one car loan at a time, although some lenders may limit the number of loans they offer to a single person at a time (although that kind of limit is usually around 10).

 

[laurenlex]

If you can predict intrest rates in the future, you would be a very rich man, and have no need for a car loan.

 

[Vic]

Originally posted by: laurenlex
If you can predict intrest rates in the future, you would be a very rich man, and have no need for a car loan.

True that. I only said "likely to be higher" because the current Fed policy is of gradually raising the Funds rate, which generally affects auto loans, especially used car loans as they do not benefit from manufacturers' discount rates.

You're welcome, ace, but I usually frown on co-signing. Hope my saying that doesn't wreck your plans.

 

[Garet Jax]

All up to your negotiating power. Other than being in a general category for your credit score (great, good, bad, etc...), credit score shouldn't affect your interest rate all that much. That is too say something with a 730 isn't going to get a much better deal than someone with 720.