Q: I found the car of my dreams. It has great gas mileage, four-wheel drive, seat heaters, and a DVD video system. As luck would have it, this perfect vehicle is out of my price range, and I’m trying to strategize ways to finance it. About a decade ago, I had to default on my student loans and now my credit is in the tank. So, I’m concerned about getting approved for a loan. Is it possible to get two car loans to afford my new set of wheels?
A: The short answer is yes: you can get two car loans. However, your particular situation might make it a little tricky, if not completely impossible. When you apply for a car loan, the bank will do a “hard inquiry” on your credit report to analyze your credit history and score in order to figure out if you’re a feasible candidate for a loan. If they find out that your credit is shot, then the chances of getting approved for just one lone are very slim.
That being said, if you’re in good standing credit-wise, then getting a loan is easy, and usually just takes a day, and taking out two auto loans at the same time is totally doable. Auto loans come with interest that you’ll have to pay until the loan is finished, so keep in mind you will be paying double interest if you take out two loans. Try to look for the financial institutions that issue out the lowest interest rates. Interest.com lets you compare interest rates from national and local to help you find the cheapest ones. Once you get some leads, go to their websites and fill out the quote form, which will tell you know how much your total monthly payments would be along with specifics regarding the loan agreement. It’s important to pay finite attention to detail when evaluating loan options, so you can find the best offer with the least number of strings attached.
In your case, reader, your credit remains a crucial component in the loan-approval process. You might not qualify for low-interest loans, but financiers will most certainly try to entice you with high-interest ones. In those cases, the initial interest might fluctuate, and down the road you could be paying much more than you anticipated. That’s why it’s always important to read the agreement fully.
We understand your woes, reader. Cars often look a lot sexier on the lot than do on the highway. Car salespeople will jazz up their pitch to make the car sound faster, sleeker, and safer than it is in practical application. Do you research before you spring for a major purchase like a vehicle, and try searching for a car that will meet your daily needs. Many used cars are adequate and work just as well as new ones, and are a whole lot cheaper. Don’t just shop at the dealership, check out Craiglist and eBay for your new car.
Read more of our informative articles:
Get Your FREE Book Now
Enter your name and email to get the "365 Day Money Challenge" straight to your inbox.