Cars are expensive. To help cover the cost of a vehicle, new or used, many people decide to opt for a car loan, repaying the amount in more manageable instalments over time. At one point or another, 19% of Australians have used this method.
But what about if you want to buy two vehicles? There are several reasons you might want to do this, and you may find it makes sense to use one loan to cover both payments. In this article, we’ll look at how to get two cars on the same loan, and everything you’ll need to know to get started.
Why Buy Two Cars With One Loan?
To start, here are some of the reasons you might consider buying two vehicles with the same loan:
- It’s simpler to cover two purchases with a single loan, giving you less to keep track of and making it easier to manage within your monthly budget
- You might want to buy a car for yourself along with a gift for a family member
- You might want to buy a second car for emergencies alongside your primary car
- You might want to buy a car for personal use and a second vehicle — like a van or pickup truck — for work
How To Get Two Cars on One Loan
So how do you go about buying two cars with the same loan? Ultimately, this is all about convincing your lender that you are capable of repaying such a large loan reliably. As a result, you may need to prepare slightly more than if you were only getting a loan for one vehicle.
Work Out If You Want a Car Loan or a Personal Loan
Each option has its pros and cons. Many dealers will not approve a car loan in the traditional sense because these typically use one vehicle as collateral. However, there are always exceptions and it’s worth taking some time to look at the options and decide what is best for you.
Make Sure You Have Good Credit
You’ll need a reasonably strong credit score when applying for a loan for two vehicles. This is best done over many years of responsible financial habits, but there are also things you can do to quickly improve your credit. Some examples are paying off any existing loans, having any errors or inaccuracies removed from your credit report, and reducing your credit limit.
Get All The Right Documents Together
Your lender will want to see plenty of evidence that you’ll be able to repay your loan for two vehicles. This means you should take some time to gather all the relevant information and documents, such as:
- Your debt-to-income ratio
- Your current income, evidenced by payslips, tax returns, or bank statements
- Any identification documents
- Your credit history
- Documents related to your driving qualifications and car history
Find The Best Loan For You
It’s worth taking plenty of time to shop around and find the very best loan for your circumstances. It’s unlikely that the first loan you come across will be the best one for you, so don’t be tempted to rush into anything.
Work with a broker
The process of getting a loan for any vehicle can be complicated, and when you add an extra vehicle into the equation things only get trickier. A good loan broker can help you work through this process more confidently, drawing on their web of contacts and depth of experience to find you the best deal and guide you through all the necessary steps.
At Lynam Home Loans, we’ve been helping people secure loans for vehicles for years. We work with lenders across Australia to help our clients pay for their dream cars, and we can help you do the same. Get in touch to find out more.
