Is one car simply not enough? Need a second car? You’re not alone.
With Canada being so vast, it isn’t unusual for people to work at opposite ends of the city or province. Or have work and school over an hour away in opposite directions.
In situations like these, having a single car in the family just isn’t practical. Sometimes there is just no choice but to buy a second car.
Which is where our competitive car loans can help.
Car loans for a second car
The good news is that lenders aren’t interested in how many cars you want or have. All they care about is your ability to repay the loan and be a good borrower. Therefore, getting a car loan for a second vehicle is exactly the same as qualifying for any kind of loan.
It all comes down to affordability.
Can you afford car loan?
Credit histories and credit scores will influence the interest rate and what lenders will be willing to work with you but it’s affordability that everyone is interested in.
Can you afford the car loan repayments? Will those repayments push you close to the financial edge? Will the car loan exceed the ideal income to debt ratio? If you can satisfy those questions, you can get a car loan.
Improve your chances of success
You can do a few things to improve your chances of being accepted for a car loan, even if it’s for a second car.
Save for a down payment – The higher the deposit you can put down, the higher the chances of qualifying for a loan. Not only does a deposit lower the amount you need to borrow, it reassures lenders that they would get at least some of their money back if you defaulted for any reason.
Pay of existing debt – Your income to debt ratio is an important factor in assessing your car loan application. If you have debt already, the car loan may push you over the ‘ideal limit’ lenders like to see. If you have debt other than a mortgage, pay off as much as possible while still leaving cash for a down payment.
Consider borrowing less – If you already have debt and cannot pay it off right now, lowering your car loan could be the difference between success and failure. Borrowing less and going for a cheaper car could still get you what you want, just in a different form.
If you need a second car and need a car loan to pay for it, we can help. Contact our team to see how.