Can You Finance Two Cars On One Loan?
This is a question that most people especially couples ask when they need to get two cars for themselves since having one car as a couple with kids is sometimes frustrating. What should you do to finance two cars on one loan? Is it even possible to do that?
Here is an answer to the above question and others by House of Debts:
It is not usual or common to have 1 financing arrangement on two cars in one loan. Most dealers out there would grant an auto loan for a specific vehicle as that particular car acts as collateral to ensure you pay your loans timely. However, it’s easier to get another car but with a different financing arrangement. The thing here, therefore, is that you’ll have two auto loans that may charge different interest rates, payment schedules, and loan terms.
If a car dealer approves two auto financing agreements, it must mean that you’re an excellent debtor with a very credible credit history. But in most cases, it’s a “one-is-to-one” basis in terms of auto financing. The scenario of financing several vehicles at once is more viable for large corporations than for individuals unless you belong to the super-rich.
But if you’re a mid-range income earner, financing two cars in one auto loan is nearly impossible. If it does happen it would be if you have a stellar credit reputation so there is little or no risk to the lender. However, even if this option is not possible, there’s this thing called “debt consolidation,” wherein you’re combining car loans into a single loan.
Car and Driver also throws more light on financing two cars on one loan.
Buying a car is a fairly straightforward process. First, you find a vehicle that fits within your budget. Then, once you’ve either put money down or traded in your old vehicle (or both), you can drive the new one off the lot.
But can you finance two cars at once? If you’re buying more than one car or buying another car before you’ve paid off your previous auto loan, things start to get more complicated. According to Suburban Finance, if you are buying two cars at the same time, you can get a single loan. That way, you’ll only need to deal with one monthly payment.
Here are the steps one needs to take to get a loan for two cars:
- Order your credit report from Equifax, Experian, or TransUnion, which are the three major credit bureaus. Review the report, and correct inaccurate information that could be driving down your credit score unnecessarily. You can correct inaccuracies by initiating a dispute with the relevant credit bureau online.
- Once you have your credit info, shop around at credit unions and banks, either in person or online, for a personal loan in the amount you’re willing to spend. Do your research. Once you have provided the relevant documentation, you’re approved for the loan, and the funds have been disbursed, you can deposit that money into your checking account.
- Shop until you find the two cars you’d like to buy.
CONCLUSION: So yes, it is possible to finance two cars with one single loan but there are conditions to meet before getting through.
Also, read about Hard Money Loans 100% Financing