More Than One Car on Finance

It's fairly common these days for a family to need multiple cars given just how busy they can be.

As a result, it could very well be the case that both cars need to be on finance to help afford them - and that's perfectly possible.

Can I have multiple cars on finance?

There is no legal limit on how many car finance agreements a person can take - however, you will need to prove to the lender that you are able to make your payments.

As an individual car is collateral for each finance agreement, you are unable to have two cars on a singular contract.

Taking on more than one car finance agreement

If you're planning on opening up a second line of credit on a car, you need to make sure you're in a position to do so.

Just like any new finance agreement, lenders will need to go through all the same processes you went through for the first car.

However, this time around, you already have a car on finance, so adding a second comes with extra responsibility.

First and foremost, you'll need to be sure you can afford the extra monthly payment that will be coming out - and that's something a prospective lender will also be looking for.

Being able to put down a solid deposit, meanwhile, will help you reduce the amount of credit you require on the new car.

In addition, ensuring you've paid off a fair chunk of the finance on your existing car will also help matters - this is also the same for any other loans.

Can someone with a low credit score finance two cars?

This is where it might get tricky - for those who might have bad credit, getting multiple cars on finance may have been hard enough.

Getting an additional car on credit while you already have another on finance could prove to be difficult.

If you're really in need of a second car, and you'll need to get it on finance, then perhaps start with an eligibility check and go from there.