Things can get a little complicated if you’re buying more than one car or buying a second car before paying off the first one. If you’re buying two cars at a time, you could finance them with one loan and deal with only one monthly payment. Let’s see how that can work.
You have a couple of options to finance the purchase, each with its pros and cons. You’ll need to do the math to work out what’s best. You can get an auto loan in the usual manner to fund the entire purchase or get a personal loan. This works because a personal loan is a non-collateral loan that you can spend in any way you want. To buy with a personal loan, do the car research in the usual manner that assesses all its pros and cons, including the price. Once you know how much it will cost, shop around for loans to find the best rates. Then, once your loan application is approved, purchase both cars from the dealership by paying for both in full. Finally, pay off your loan dues on time every month.
If you’d prefer only using an auto loan to buy two cars simultaneously, here’s what you can do.
Start by ordering your free annual credit report from each of the three major credit bureaus. Review each report carefully and correct any mistakes that may be in them because they drive down your credit score. Initiate a dispute online with the credit bureau that made the mistake.
Next, shop around for loans at banks, credit unions, and online lenders. Once you find the best rates, apply for the loan, and with details of both cars, you plan to buy. The lender will let you know which documents they need%