Know More: Can You Finance Two Cars at Once?

Buying a new car is a pretty straightforward process – you need to find a car that is within your budget and get a loan (or pay for the car with your own cash). Once this is done, the car is yours.

But financing two cars at the same time can be slightly more complicated. Most lenders, based on your credit score and loan repayment capability, will let you get a single loan to buy two cars. Although the loan covers two cars, you’ll only need to make one monthly payment.

You will need to take the following steps to get a loan for two cars at the same time:

Get Your Credit Report

 Get a copy of your credit report from the credit bureaus, and review the report. If you spot any inaccurate information/data, get it corrected to improve your score. You can get inaccuracies corrected by filing a dispute with the credit bureau online.

Shop Around

 After you get your credit information, make inquiries (personally or online) for a car loan for the amount you are willing to spend on purchasing the cars. Once you’ve found a few loans with good terms, apply for pre-approval.

Start Shopping for the Car

 Now comes the fun part – look around until you find the two cars that suit your needs. Since most dealerships will offer you financing, make sure to present your pre-approved loan offer to them, and negotiate for a better rate on the loan.

Sign the Paperwork

 Once you’ve settled on the two cars you’d like to buy, you can sign the paperwork and buy the two cars on loan.

The Bottom Line

When applying for a car loan, make sure to have your proof of income, credit history, etc., in hand. Apart from your credit score, lenders may also consider your debt-to-income ratio to decide your interest rate. While you may get approved for a loan to buy two cars, ensure that you can actually afford the loan. Make sure to also account for the insurance, fuel, and maintenance costs, which could increase the total ownership cost for you.