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Posted in Auto Loans
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mahoneymem

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Getting a second car loan
We are in need of a second car. I financed my current vehicle less than a year ago and still owe a considerable amount. We do have enough saved to pay the majority of my current loan or put it toward the new vehicle. Either way I will need to finance the new car. I'm seeking the best route to take to make this happen if at all. My credit score is around 670 but I'm also not sure how much of an impact that would have on getting a second auto loan.

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It is all going to depend on your debt to income ratio. There would be no problem having a second auto loan as long as you can afford it and that is what the lenders will want to see. If your debt to income is good enough that you can afford another loan, then you may want to use all of your money toward the next car as it will improve your chances of approval. As far as your credit score, it would decrease by adding more debt if you open another loan, but not a big deal as your score will come back once you pay down the balance, depending on your credit profile, you may not lose that many points by adding a new loan. Do some reading on how to figure out your debt to income and take it from there.

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