Bought old car to build credit..to then buy a new car, can new car loan get pulled,

  • Thread starter Thread starter sat87us
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sat87us

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if the old gets repo'd? I bought an old car at one of those "bad credit, no problem" dealerships, paid it on time for a year, that was good enough for a new car dealership to approve me. Now I'm returning the old car (voluntary surrender), but they said that there's a chance my new car loan could get pulled if I let go of the old car..is that true?
 
It depends on the terms of your new car loan.

If you cannot return the first car without problems, why don't you sell it outright and then pay off the first loan.

It sounds like what you are doing is meant to be clever, but it's not. You are sabotaging your own efforts to build your credit. The return will be reported to the credit bureau and it will be damaging.

Explore other alternatives.
 
Auto finance is what I do for a living and no this is not true.

Once your new loan is what we call funded meaning the dealer gets paid by the lender the lender can not come back after the fact and rescind the loan based on new information.

It will however make it much harder the next time you attempt to buy a vehicle.
 
Both sides have to honor the contract that they signed.
Read the contract.

You know, the one you SHOULD have read BEFORE you signed it.
 
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