I Have Multiple Cars, but I Need an Auto Loan. What Can I Do?

It’s not uncommon to have more than one vehicle in your driveway. What may be uncommon, though, is for all of those cars to be in good working order. And that is unfortunate, because there might be some situations in which having two well running cars are necessary.

If all of your cars are paid off, and your finances are good, getting approved for another auto loan shouldn’t be a problem. But what can you do when you are already making payments on a financed vehicle and need a second one?

Know the Details

Your credit will be the deciding factor on whether or not you can get approved for auto financing. If your credit is stellar, you only need to worry about your debt to income ratio (DTI). This is the percentage of your monthly gross income that goes towards paying debts (including housing costs like rent or a mortgage).

But, if you have a bad credit rating, lenders will not approve you for another loan, even if you have the income to handle the payments. From their perspective, it’s just too risky.

Why Do You Need a Second Car?

What makes another working vehicle a necessity for you? Do you have additional family members in your home that need to have accessible transportation when you’re at work? Or, is it just a case of having a somewhat reliable backup in the case of emergencies? If it’s for another person, can they apply for a loan themselves or, if it is for your spouse, can they be a co-buyer?

These are the questions that you need to take into consideration. If it is for another member of your household, maybe it is possible for them to get approved for an auto loan. They’ll never know until they try. But if all else fails, there may be another option for you.

What Can You Do? Take Inventory!

What condition are your other cars in? One might be barely running, and another may not run at all. See what you can do to make the most of them. Sell the old cars, and then look into buying a better quality used vehicle. It could be just what you need until you have your current loan paid off and are in the position to take out another loan.

If you are in a position to take out another auto loan, or have another family member who needs to get approved for auto financing, Auto Credit Express is ready to find the dealer that can help.

Posted on December 28, 2014 by in Auto Loans
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