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Second car loan ?

New Contributor

Re: Second car loan ?

I had two car loans at 713 TU score through my credit union

It was a non issue as long as the income supported it. They actually gave me a better rate on my second loan vs the first.

But I was very low DTI even with both loans. Sub 10%

Message 11 of 15
New Contributor

Re: Second car loan ?

I currently have two car loans at the same time along with a mortgage. One is through a local credit union at 2.49% (initial amount around $55k) and the other is through USAA at 3.49% (initial amount around $70k). I actually got both car loans back in May 2016 and the mortgage recently in February 2017. As others noted, it is mainly about your DTI and making sure your file doesn't have any other red flags.  

Message 12 of 15
Valued Contributor

Re: Second car loan ?


Camaro_z28 wrote:
Hello I was just curious to see if anybody had any info or any prior experiences on having 2 car loans out at once . If it is even possible I have pretty good credit at about 750 or higher . I have 16k left on my car loan I got last year but was looking to get a 2nd vehicle for my wife . She doesn't have great credit so is there anyway I could get a second loan with both of our incomes ? My only other debt is credit card debt

I currently have two auto loans. 

 

The first one was obtained in April of 2015. My FICO auto scores were all over the map at the time, depending on which CRA you were pulling, what day of the week, and what phase the moon was in at the time. They ranged from 605 to 672 I got a 36 month lease on a luxury car, and rolled over $5K of negative equity on a Kia. I'm currently paying $863 a month.  I'll do a buyout when the lease is over, and I'm expecting to have to finance $15K at 2.5%, so the payments will go down to about $440 a month for another 36 months. Looking at my finances, I might actually have enough cash to pay for the car in full at the end of the lease, which is something I never thought I'd be able to do in my life. 

 

The second loan was obtained in January of 2016. My FICO scores were all mid-high 600's across most scoring models. 72 month loan on $21,000 at 8.64% Payments were $374 a month, but I was making $400+ payments. In March of this year, I refi'd that down to 48 months at 2.74% ($397 a month payments) with DCU. It's amazing how quickly the principal balance drops when the intererst is lower. I'm hoping to accelerate the payments when the lease ends. 

 

It helps that I have no mortgage or rent payment right now. I wouldn't have been able to obtain the second loan if I did. I have also been denied revolving credit due to having two car loans, so it's not all roses. 




Starting scores: 552 EQ, 570 TU, 558 EX Current scores (12/29/17): 742 EQ 735 TU 752 EX
Message 13 of 15
Regular Contributor

Re: Second car loan ?

Yes...it's very possible. I just left the dealership a couple of hours ago with my 2nd auto loan that I didn't think I could get thanks to Capital One Auto Navigator pre-qual. Capital One gave me a 4.97% APR on a $15,000 loan. $50,000 income. DTI 32% before 2nd loan and small CU personal loan post to CRs. I put down $2000, although not required. Payments are $215 a month for 72 months for a new 2017 Ford Focus. Nice little first car for 19-year-old daughter. Will pay off sooner than term given though. I did not try any other CUs for fear of denial since my FICO 8 scores are in the 650-665 range, not so good auto loan history, and since I recently refi'ed my old car loan with NFCU. My purchase price on the CO pre-qual quote was off by about $2000 because I chose the wrong car to quote by mistake. Price quoted was for a manual/5 speed, which was priced $2000 less than the automatic. We do not know how to drive a 5 speed. I was so embarrassed when I got into the car to test drive it. Had to spend another hour renegotiating the price with the dealer who did not want to budge on offering any rebates, incentives, discounts. Lesson learned! I'm thrilled with my 2nd auto loan as I continue on my rebuild journey.
Starting Score:6/8/16: EX 585, TU 551, EQ 574
Current Score: 11/19/17: EX 680, TU 674, EQ 693
Goal Score: 700


Available CL:$80,450
Message 14 of 15
New Visitor

Re: Second car loan ?

I will tell you my situation. I have a Kia sportage now for 11 months, 10 months of payments, I needed a second car. So I went in to the same Kia I bought the sportage from unsure if I wanted to buy or lease and probably buy out at the end ( I realize that is less economical but I wanted lower payments). so I thought I had an auto enhanced score of 690, they pulled it and it turned out to be 715, they automatically approved me with no more questions asked except for what I make. My debt to income ratio will be about 45 to 50%. When they pulled it was 50%. My bills are Discover 214, capital one and citibank 25 each, sportage 424, jet ski 126, personal loan 181, and one other card 47, and a secure loan, with deferred student loans. I never miss payments or am late, my rent is low cause I live with parents. So yes it is possible, and please don't judge what will happen based on these forums, it is unique to every person based on where you go and who they use. Smiley Happy

Message 15 of 15