topic Re: Second car loan ? in Auto Loans

Second car loan ?

Anonymous — Tue, 16 May 2017 02:45:28 GMT

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

Re: Second car loan ?

Anonymous — Tue, 16 May 2017 07:09:40 GMT

It's certainly possible for someone to have two car loans.

My guess is that if you want the lender to count both of your incomes, then the lender would want to see both credit scores, in which case the lender would typically take the lower of the two.

If you want to take out the 2nd loan in your name only with only your income, then it would need ti be plausible for your income to support both car payments (along with expected rent/mortgage and other cost of living)

We don't know what you current payments are (credit cards, car loan, rent/mortgage, etc.) nor what the cost of the new car would be, nor what your income is, so it is hard for people here to say.

Any particular reason you couldn't sit down with a couple lenders and ask them? You could give them your scores, income, and bills and ask them if they can give you a general idea.

Re: Second car loan ?

Appleman — Tue, 16 May 2017 13:19:28 GMT

Welcome to myFICO. Lots of great tips and free advice here. But always remember to do what works for you.

You may have as many car loans as your credit profile can support.

You have a good track record with one auto payment (assuming no lates etc).

Your credit score at 750 is great. Each lender will use differing scores, but it sounds like you will have good scores all around.

Calculate out your Debt to Income ratio DTI. For auto loans they will usually have no problem provided you are below 40%. The easiest way to do this is to sign up for the free credit sesame account. On the free version they will show you what your DTI currently is (this will require you to put in your annual gross (pre-tax) salary and it will pull the payments that currently show up on your credit reports. (If you are renting, you will need to do a manual calculation as CS will only pull in current mortgage data)

Example. Current income $45,000. x .4(40%) $18,000 / 12 months = $1,500 a month available for paying bills and keeping DTI below 40%.

Rent $600, Auto Payment $400, Credit card Payments $200 = $1,200. In this hypothetical example you would have $300 available for another car loan. And, each lended will have differing criteria and some will readily go above the 40% DTI

You could use your wifes income but that will bring her credit into play with the lender. Honestly not sure how that will alter you rate.

Also, try Capitalone Auto navigator. This allows you to see if you would qualify with Cap1 and it is only a SP (soft pull) of your credit (no negative effect).

Also, you may want to look into PenFed credit union. For one Equifax pull you can get membership and any other products that your credit profile will qualify you for, For example you could approval for an auto loan, possibly refinance your current auto loan and even a credit card. Just a thought.

Good luck and please check back in with us. Sharing your experiences will help others I am sure.

Re: Second car loan ?

Anonymous — Tue, 16 May 2017 17:18:10 GMT

Certainly if you have the income and credit you can get two loans at once. I have seen a couple of times here where a couple gets two BMW's or Lexus' , in those cases they went through the captive lenders. I suspect that Penfed would do two loans under the same circumstances also.

Re: Second car loan ?

Anonymous — Tue, 16 May 2017 23:51:17 GMT

Thanks for he replys guys. I Calculated dti looks like I'm at 34% which gets me Close. I might have to include wife's income. I'm mostly just looking to get lower apr current car loan is at 1.75 and would like to get about the same this time around thing is I'm looking to get something around 40k. I was going to give my wife my car and get a truck is there anything I can do in that aspect? Current car payment is 290 and rent is 950 between me and the wife and only credit card payment is about 40$. Income for both of us is around 35k ea .

Re: Second car loan ?

Anonymous — Wed, 17 May 2017 00:38:02 GMT

Forgot to mention I used the autonav from capital one for pre approved for 27k?

Re: Second car loan ?

Anonymous — Wed, 17 May 2017 01:01:37 GMT

@Anonymous wrote:
Forgot to mention I used the autonav from capital one for pre approved for 27k?

I always strongly reccomend the credit unions, they consitantly offer the best rates. Back during my rebuild Capone gave e 8.5% and NFCU a week later gave me 4.29%, we see examples like this here all the time.

Re: Second car loan ?

Anonymous — Wed, 17 May 2017 01:20:25 GMT

I agree will definitely do but was just trying to get an idea if I would even get approved with capital one auto nav it's soft inquiry and won't hurt your credit Score to get an estimate of what you can get approved for .

Re: Second car loan ?

Anonymous — Wed, 17 May 2017 15:43:58 GMT

You wouldn't be able to consider her income without her going on the loan most likely, However many bank's will generate an interest rate based off of the higher credit score. Credit union's like Scott Credit Union (located in illinois and they service, many of the surrounding states) will use the higher score of the two to generate an interest rate, however she will have to qualify as well. What I mean by this is, if you are a strong 750 and she is a very weak 500 score they may not approve the loan, however if she isn't necessarily as bad as you think you should be in good shape.

as other's have said, you can have as many auto loan's as your income/credit profile will support, I have personally seen individuals with 6 open auto loan's but they had the credit profile and income to support it.

My advice would be to see if you and your wife can get pre-approved through a credit union with a joint application and go from there. I don't think your income alone support's a second car loan considering your DTI and the type of loan (40k) you are looking for.

By finding a lender willing to approve you both on a joint loan it would help her credit rebuild as well with an open installment loan with positive payment history.

some of your national captive lenders (well's fargo, ally, us bank, commerce, etc) will determine an interest rate based on your interal score with that particular lender so if your wife's credit isn't good at all you could potentially be placed in a lower tier level generating a higher rate, this is where credit union's and other lender's come in handy.

Re: Second car loan ?

Anonymous — Wed, 17 May 2017 15:46:21 GMT

in addition,

Your Capital One pre approval if it is just in your name could be useless. Once you get to the dealership there is a very good possibility that they generate a stipulation for the dealer requesting you to trade your current open auto loan if you don't qualify for a second unit.

Re: Second car loan ?

Anonymous — Wed, 17 May 2017 19:39:30 GMT

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%

Re: Second car loan ?

impactplayer — Fri, 19 May 2017 18:33:14 GMT

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.

Re: Second car loan ?

DeeBee78 — Tue, 23 May 2017 22:56:12 GMT

@Anonymous 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.

Re: Second car loan ?

ls2016 — Wed, 24 May 2017 04:04:10 GMT

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.

Re: Second car loan ?

Anonymous — Sat, 15 Jul 2017 19:46:15 GMT

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.