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Any idea on how much it may go up? Once the car is paid off, do you think it'd be in my best interest to trade it in & get a new car (if that's even possible at this point) or keep the same car? It's 7 yrs old.

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Are you talking about getting a new car loan just becuase you feel the need to have a car payment for some reason?  Does the thought of owning a car that you actually have paid for scare you?  7 years is not a long time for a lot of cars...

 

What kind of car is it...how many miles, what's the condition? Does it currently suit your needs?

 

If your credit isn't great, maybe that "new extra" $$ that used to go into a car payment can now go towards your credit card balances...student loans...other car payment...401K, IRA...the list goes on.

 

I suggest that you keep your car so long as it's in good shape and still gets you from point A to B reliably. Example - I had a 1997 Grand Am from 2004 to 2012.  I had that car for 8 years,  bought it when it was 7 years old with 84K on the clock...and I sold it with 195K on the motor and trans. The only reason I even sold it was becuase my wife and I agreed we needed a sedan since we were going to start having kids.  I ended up buying a new car...a 1999 Nissan Maxima for just over one thousand dollars more than I sold the car for. (Maxima was purchased, for the record, for 2700 bucks.) My point is, you can get a "new" car for cheap, if you know what you're looking for and have the patience to wait. 

 

If you're going to sell your car, SELL IT and do not trade it in.  Trade ins on a 7 year old car are nothing.  NOTHING.

 

How is the rest of your financial profile?

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Or you could do what I did - save the car payment into a savings account each month so you can pay cash or close to cash when you need a new car.  I stashed my car payment for 7 years and then paid cash for a car and had some money left over.  

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My car is a VW Jetta. Miles around 50,000, the body isn't great; as an ex-bf of mine keyed it on the back and side. My credit stinks. I have lots of charge offs on there from yrs ago.

Edited by Amerikaner83
swearing...
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My car is a VW Jetta. Miles around 50,000, the body isn't great; as an ex-bf of mine keyed it on the back and side. My credit stinks. I have lots of charge offs on there from yrs ago.

 

So it's not the prettiest thing due to some key marks?  Yeah...keep it.  50K is nothing, and so long as the car is still in good OPERATIONAL condition, you're in a much better position to use your $$ elsewhere, like in a savings acct like Admin mentioned, or to otherwise help your credit.

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  • 4 weeks later...

It would be way cheaper and financially prudent to touch up the key marks than it would to take on more debt when you are in the process of cleaning up your reports. It isn't necessary to have an installment loan active at all times to maintain a good credit profile. Usually a new car is a want because deep down inside, we are all five year olds.

 

I drove a 92 Oldsmobile and a 95 Blazer for 10 years until it cost me more to keep them on the road than a newer vehicle. Then I bought a USED Jeep which was my first car payment and hopefully last car payment. That five year old inside me tries to pop out often. I had to talk myself down from a motorcycle last month and restored my old 79 Honda CB400 instead.

 

Don't listen to the five year old. They are dumb.

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