Auto Loans

[credit1990]

So here's the deal.  I just graduated college and moved home, and am in the process of changing up the cars in my house.  My family had 2 cars, a paid off minivan which we put a lot of miles on, and a 2010 honda civic lease.  Although we were fine on miles on the lease, it was a pain monitoring how much we drove, so we traded in the civic lease for a new Prius C finance purchase with 60 months at 3.24% apr this past weekend.  That purchase went smooth and easy.  Both my dad and I cosigned that finance so we could qualify for a college rebate deal and help to build my credit.

Now here's my problem.  We still need one more car due to the number of drivers in my family (carpooling is getting annoying).  I am looking at getting a used car somewhere around $11-15k.  My dad says we need to wait a month or two to finance another purchase because he is afraid of running the risk of being denied credit and having that hurt our scores badly.  He has an excellent history, with never having a late payment ever.  I think his rating is somewhere around 720 or so, and mine is still being built up since I just graduated college but I have about 720 as well with one credit card and college loans.  Both him and I have jobs and have no problems paying off either of these two loans.

Is a month or longer necessary between car loan purchases?  Or can I purchase a second car sooner?  Thanks!

[coreyb80]

Me and my now ex-wife did this back in 07.  We purchased her an 07 Trailblazer in which she was 1st on the loan and I was a co-signer.  About a week or 2 later I decided I wanted a new car so we went and traded my car in and got me an 07 Malibu in which my name was 1st and she was listed as the co-signer.  I said all that to say that yes it is possible to do without waiting a month or 2 as long as the income is present to afford it.

[pizzadude]

Regardless of whether you would be approved or not approved for the second card loan, it won't damage your FICO score.    You would just likely have a few additional auto inquiries, which are scored as one inquiry within a certain window, 14-45 days depending on the FICO model used.

FICO doesn't ding your score for being denied credit.

[webhopper]

So why are you co signing the second loan? Are you prepared to pay the note.on both cars? Does your dad not make enough money to get a.loan on his own?

[webhopper]

If you have any intention of buying a house down the road; you need to stay off the second loan... they are really tough on debt to income. Personally; I wouldn't cosign unless you're prepared to pay both notes.

[Autumnslight]

I just bought two cars in two days about a month ago. Being on the hook for two large loans is a serious matter, especially if you're looking at a mortgage any time soon. That said, if you're comfortable being responsible for them both, then you actually stand a better chance of approval by going for the second loan immediately after the first. If you're using different lenders, then the second lender won't see anything on your credit report about the first loan, since it wouldn't be reporting yet. Also, having all of the inquries close together will actually be better for your score, as they'll only count as one, even if they're for two different loans.