Although you may have a car, you may be in a position where you need an additional car, one for your spouse or children. If this is the case, you may be contemplating your options. Depending on your finances, you may be wondering if you are able to get two auto loans. Is this even a possibility? We share the answer here.
Can You Get A Second Auto Loan?
The answer is yes! You can have two car loans at one time, but you must be mindful that it may be more difficult to qualify for a second loan. Lenders will only approve you if your income and debt can handle the added monthly expense. In addition, you will need good to excellent credit to receive a low APR. Without a solid credit score, you may encounter higher rates and get approved for a lower loan amount, which may set limitations on what type of car you can afford to get.
Should I Try to Get Two Auto Loans At the Same Time?
It depends on your financial situation. If you already have excellent credit, limited debt, and a strong income, a second car loan may not have as big of an impact. However, this is an important decision that can affect your finances significantly if not carried through properly. As a result, it’s good to be thoughtful when making a decision.
Another thing to keep in mind is that applying for a second car loan will result in a hard credit check, which could temporarily lower your credit score.
Do you need help financing your car? Let us know!
Let Camino help you. We want our members to find the best option that works for their needs. We offer competitive auto loan rates. Please give us a call at 800-835-3400 to speak with one of our Member Advisors, or contact us for more information.