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Can you have more than one car finance agreement?

Deciding to finance a car can be a big task, with various car finance options out there that you’ll need to research to find the best deals.

But in the modern-day, many families need more than one car. In fact, it’s fairly common for families to have at least two cars, especially if both parents need to commute to work. But can you have 2 cars on finance at the same time?

To help you understand the ins and outs of car finance, and whether or not you can have two car finance agreements, we’ve broken down the specifics to help you make the right decision with your money.

Can you have two cars on finance at the same time?

Yes, absolutely! While you might think you can only have one car finance agreement at any one time, the truth is that you can have as many loans as your chosen lender allows.

There is nothing to stop you from having two finance loans going simultaneously, even if one is HP car finance and the other is PCP finance.

However, importantly, the decision for whether or not you can have two cars on finance will be down to the lender in question. You need to be able to show them that you can afford it and that you won’t be a risk to them should you take out a second loan.

What determines whether or not I can have two car finances?

Above all else, your ability to get a second loan will be determined by the state of your current finances and whether or not you’re capable of repaying two loans simultaneously.

The answer to the question, “Can you have two cars on finance”, is not answerable without first considering everything that could affect your current and future financial situation.

Lenders will want to assess your current income, other loans, your debt-to-income ratio, and the state of your credit score. A poor credit score means the chances of you getting a second car loan are unlikely. And with a second car finance request, your credit history will be scrutinised even harder.

What can I do to get a second car finance agreement?

First, you can increase the odds of you getting a secondary financial agreement by putting aside money for a deposit on the car in question. This will reduce monthly costs and show good affordability.

You should also stagger any requests you make for a second loan as lenders don’t like it when multiple different loans are requested close to one another. One good idea is to wait until your current car finance is almost paid off.

When it comes to secondary car finance agreements, lenders may consider your last payments as paid off if you ask for a second loan. This is not to say that you don’t have to pay any remaining payments, just that the new loan will count as the only loan you have with them.

As for your debt-to-income ratio, you want to be sure that any current debts you are paying do not exceed 50% of your monthly income. If it’s this high, you may well have to wait or find a way to improve your credit score. This can be done by paying off current loans, merging all loans into one single entity, and ensuring you always make loan payments on time.

A second car finance agreement should be carefully considered in all areas. Having two finance options is a big commitment, but if you want to apply, then you can get in touch with the Zuto team today!

Our experts will guide you through the process, offering help and advice while explaining the various car finance options available to you. You can also find more information over on the Zuto blog.

Written by

Mike Barlow

Content Manager

Mike has worked at Zuto since 2018 and uses his experience within the industry to help customers understand the ins and outs of car finance.

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