Car financing question?

Question

I want to buy a car. I already have one I'm still paying on but I plan on selling it private. Should I wait until it sells to apply for the new loan on my new purchase, or will the bank understand that i'm planning on paying it off anyway when I get my other car (I'll tell them of course)? Make sense ? :-)

Answer 1

As long as the bank feels you can make both payments during that time, they would be fine with that.

Answer 2

Selling it first will help of course. If not, the bank will see it as two loans and may not approve you or offer a higher rate.

Doesn't matter what you tell them, they go by what's on your credit report.

So sell first then wait until your credit reflects it or trade it in at a dealer.