Hi everyone, I'm trying to get a definitive answer about selling a car that is being financed. My question being: will selling the car negatively impact my credit?
I bought a used car in December using an auto loan through my credit union. I put 6k down and financed the difference of 9k. I'm already down to 7800 on my loan since I've been making larger than the minimum payment.
I've been throwing around the idea of selling it to buy a cheaper car since my commute has been drastically reduced. My insurance is 225 a month and my payments are 180. I've gotten an offer from shift for 13,700 (about 1800 less than what I paid.) I would replace the car with something worth ~5k with cheaper insurance.
Would closing out the loan severely impact my credit or will it just show the loan as paid off? Is this a stupid decision?
Thanks in advance.
Submitted May 07, 2021 at 10:43PM by wcar99 https://ift.tt/3h81JlZ
