Your credit scores were good when you purchased the car, and your payments are no higher than they were on your old car, so how could a new car purchase hurt you?
Assuming that you continue making all your payments on time, they shouldn't. But if you've gotten involved with the wrong car dealership, your credit scores could be taking a beating.
The car buying game has taken on new risks simply because so many Chrysler and General Motors Corporation dealerships are closing.
First, caring for that car may cost you more - in terms of both time and money for travel. As more and more dealerships close, you may be required to travel long distances to find authorized repair centers for routine maintenance and warranty work. But that's just the beginning.
If part of your purchase negotiation included things like oil changes or weekly car washes, those extras will simply disappear. Those were agreements with the dealership, not with G.M. or Chrysler.
If you purchased the car several months ago and have been having the dealership do your routine maintenance, check to see if you have complete records - because the records they kept may be lost. They're supposed to be transferred, but supposed to and will are two separate things. Without those records, your warranty will become invalid, so check now. If the dealership hasn't yet closed, go get print-outs of their records before it's too late. Then keep your own records of any future maintenance work.
But these things are only dangerous to your bank account. Something even worse is happening, and it can affect your good credit.
Trading in a car that isn't fully paid for has been routine. The dealership factors in the amount you owe in order to compute your equity in your old car. Then they pay off the old debt and re-sell your old car.
That's how it's always been done, but in the wake of poor sales and financial troubles for the dealerships, some of them simply didn't do it. And until that old loan is paid off, you are still the one responsible for the monthly payments.
Your credit report could right now be showing month after month of unpaid debt on your old loan.
If you've purchased a new car recently and traded in a vehicle that wasn't paid for in full, check your credit report today. If your old loan has not been paid off, you need to contact your creditor and the credit bureaus immediately.
Assuming that you continue making all your payments on time, they shouldn't. But if you've gotten involved with the wrong car dealership, your credit scores could be taking a beating.
The car buying game has taken on new risks simply because so many Chrysler and General Motors Corporation dealerships are closing.
First, caring for that car may cost you more - in terms of both time and money for travel. As more and more dealerships close, you may be required to travel long distances to find authorized repair centers for routine maintenance and warranty work. But that's just the beginning.
If part of your purchase negotiation included things like oil changes or weekly car washes, those extras will simply disappear. Those were agreements with the dealership, not with G.M. or Chrysler.
If you purchased the car several months ago and have been having the dealership do your routine maintenance, check to see if you have complete records - because the records they kept may be lost. They're supposed to be transferred, but supposed to and will are two separate things. Without those records, your warranty will become invalid, so check now. If the dealership hasn't yet closed, go get print-outs of their records before it's too late. Then keep your own records of any future maintenance work.
But these things are only dangerous to your bank account. Something even worse is happening, and it can affect your good credit.
Trading in a car that isn't fully paid for has been routine. The dealership factors in the amount you owe in order to compute your equity in your old car. Then they pay off the old debt and re-sell your old car.
That's how it's always been done, but in the wake of poor sales and financial troubles for the dealerships, some of them simply didn't do it. And until that old loan is paid off, you are still the one responsible for the monthly payments.
Your credit report could right now be showing month after month of unpaid debt on your old loan.
If you've purchased a new car recently and traded in a vehicle that wasn't paid for in full, check your credit report today. If your old loan has not been paid off, you need to contact your creditor and the credit bureaus immediately.
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