diff --git a/yum/__init__.py b/yum/__init__.py
index 1f03840..25f8729 100644
--- a/yum/__init__.py
+++ b/yum/__init__.py
@@ -2541,6 +2541,17 @@ class YumBase(depsolve.Depsolve):
                 tx_return.extend(txmbrs)
                 continue
             
+            #  Make sure we're not installing a package which is obsoleted by
+            # something else in the repo. Unless there is a obsoletion loop,
+            # at which point ignore everything.
+            obsoleting_pkg = self._test_loop(po, self._pkg2obspkg)
+            if obsoleting_pkg is not None:
+                self.verbose_logger.warning(_('Package %s is obsoleted by %s, trying to install %s instead'),
+                    po.name, obsoleting_pkg.name, obsoleting_pkg)               
+                self.install(po=obsoleting_pkg)
+                continue
+                
+
             # make sure it's not already installed
             if self.rpmdb.contains(po=po):
                 if not self.tsInfo.getMembersWithState(po.pkgtup, TS_REMOVE_STATES):
@@ -2556,16 +2567,6 @@ class YumBase(depsolve.Depsolve):
                     tx_return.extend(txmbrs)
                     continue
 
-            #  Make sure we're not installing a package which is obsoleted by
-            # something else in the repo. Unless there is a obsoletion loop,
-            # at which point ignore everything.
-            obsoleting_pkg = self._test_loop(po, self._pkg2obspkg)
-            if obsoleting_pkg is not None:
-                self.verbose_logger.warning(_('Package %s is obsoleted by %s, trying to install %s instead'),
-                    po.name, obsoleting_pkg.name, obsoleting_pkg)               
-                self.install(po=obsoleting_pkg)
-                continue
-                
             # at this point we are going to mark the pkg to be installed, make sure
             # it doesn't obsolete anything. If it does, mark that in the tsInfo, too
             if po.pkgtup in self.up.getObsoletesList(name=po.name, arch=po.arch):