Americans love their cars, trucks, and SUVs. Some love them so much they’ll own two vehicles at the same time — and often make payments on two auto loans as a result.
Having two auto loans can really add up, though. The average monthly payment for a new car in 2025 came in at $745, while a used car payment averaged $521, says Experian. Multiple auto loans can mean a significant household outlay. However, there may be reasons you need two vehicles (and, therefore, two auto loans).
Keep reading for more on why you may need two cars, how to get approved for a second auto loan, other types of loans to consider, and more.
Key Points
• Having an existing car loan doesn’t automatically disqualify you from getting another, but it can impact your approval chances.
• Lenders consider your credit score and debt-to-income ratio when evaluating a second car loan application.
• A larger down payment and lower loan amount can improve your chances of getting a second car loan.
• Maintaining a good payment history on your current car loan can strengthen your application for another.
• Shopping around for different lenders can help you find better terms and rates.
Can You Have Two Car Loans at Once?
You may ask, “Can I have two car loans at once?” The short answer to this question is yes, you can. There are, however, many factors and caveats to consider. Perhaps a better question is whether you should hold two auto loans at the same time. That answer depends on your unique financial and household situation.
In certain circumstances, having multiple car loans may make good financial and lifestyle sense. These circumstances can include any of the following:
You Have Two or More Breadwinners in the Home
If both spouses or life partners have jobs that require a commute and that commute can’t be shared in a single vehicle, owning two cars may well be a necessity, not a luxury.
You Sell or Trade Vehicles for a Living
There’s no shortage of collectors in the auto trade business who, for valid business reasons, may need to carry two or more auto loans simultaneously. While some individual auto sellers are committed to cash-only deals, some may prefer loan financing with a trusted lender.
You Own More Than One Home
While this certainly qualifies as a problem many people would like to have, owning two homes may necessitate the ownership of two cars and two car loans at the same time. This is especially true for homeowners with residences in two states. In that situation, it may make sense, at least for convenience’s sake, to hold two auto loans.
You Have a Small Business That Requires Two or More Vehicles
Many small business owners — think painters, contractors, florists, bakers, and other “on the move” trades — may need two or more vehicles. Consider a landscaping company owner whose business is growing and needs more trucks to get workers to an expanding list of client sites. Financing multiple trucks and trailers is well worth it if a business is generating more profit thanks to those purchases.
Your Teenager Needs a Set of Wheels to Get Around
Many parents know the reality of having to buy an extra car to get a college-bound son or daughter to campus (and give them a way to get around once they’re there).
Recommended: Smarter Ways to Get a Car Loan
Getting Approved for a Second Auto Loan While You Already Have a Car Loan
While it can be perfectly reasonable to hold multiple car loans, getting the second one may prove harder than getting the first. That’s primarily due to lender risk. Auto lenders may be more reluctant to extend a second auto loan to an individual. That said, getting approved isn’t insurmountable.
Know the Qualifications for a Second Loan Approval
Auto lenders and banks will typically give extra scrutiny to current auto loan borrowers seeking a second car loan. The hurdles to a second loan may include the following:
• Your credit history. Personal credit remains the primary barometer for auto lenders deciding whether or not to approve a second car loan. You’ll need to show you’re making on-time payments, you’re not overusing credit (i.e., keeping your debt-to-income ratio low), and you have a robust FICO® Score. Any score over 660 can put you in prime position for a second auto loan.
• Your annual income. Since you already have an active auto loan that hasn’t been repaid, lenders will focus particularly on your income. Specifically, the lender usually wants to see if your income can easily cover a second auto loan. Since auto purchases also lead to additional expenses, like maintenance, repair, gasoline, insurance, and state registration fees, your annual income should be able to handle not only the car loan, but the expenses that go with auto ownership.
• Debt-to-income ratio (DTI). Overall household debt compared with income is a big deal to auto lenders reviewing a second auto loan application. Ideally, your DTI ratio would be about 35%. More debt could lead to an auto loan rejection.
• The second vehicle’s value. Auto lenders will also study your second car’s estimated value. In general, the less expensive the vehicle is, the better your chances of getting a second auto loan approved. The less cash you borrow, the better your odds of repaying the loan.
• Your down payment. Additionally, it’s helpful to bring a hefty down payment on a car. Anything more than 20% of the vehicle’s estimated value is likely to help your cause with a lender.
Consider Getting a Cosigner
If getting a second car loan stretches your income (or if a lender thinks it could), it may help to get a cosigner. A car loan cosigner should be someone you trust and who has a strong credit history and good income.
Just as when you’re getting a cosigner for a refinance, this person must also be willing to share the responsibility of the loan with you. If they cosign, that means that if you can’t make a payment, they will be responsible. A cosigner can improve your chances of getting a loan because they may reduce risks for the lender.
Taking on a Personal Loan vs Traditional Auto Loan
Since the stakes are higher with a second auto loan, overextended borrowers may need to expand their vehicle financing options.
One way to do that is to weigh a traditional auto loan against a personal loan. Sometimes it can be easier to grab online personal loans, but there are risk factors involved with both personal loans and regular auto loans.
Here’s a closer look at some of the factors involved:
• Interest rates. Personal loan interest rates are typically higher than traditional car loan rates.
• Loan terms. Loan repayment timelines are about the same with both personal loans and traditional auto loans. Personal loans usually need to be paid back within two to seven years while a regular car loan repayment period stands at between three to seven years. Lenders of exotic car financing, however, may offer 144-month auto loans.
• Down payments. Down payments are not required for a personal loan, but they may be required with traditional car loans.
• Loan fees. Personal loan origination fees can be as high as 10% in some instances, whereas loan fees for regular car loans usually range between 1% and 2% of the loan amount. The finance charges on a car loan may consist of interest and fees.
• Collateral. Personal loans for autos typically require no collateral. That’s not the case with traditional auto loans, where the vehicle itself is usually the collateral. There are multiple types of car loans, including secured auto loans and unsecured auto loans.
So, which is right for you as a second car loan: An auto loan or a personal loan? The answer depends. If you can get an auto loan and you can afford a down payment, you will likely pay less in interest and fees. However, if you are having trouble finding an auto loan or don’t have a down payment at the ready, an unsecured personal loan could be what it takes to let you get that second car.
Recommended: What Is the Most Common Auto Loan Scam?
The Takeaway
Balancing two auto loans simultaneously could be challenging, but it may be doable if you have a decent income and a history of on-time payments. Just be sure you really need to have two quality vehicles at the same time.
If you’re seeking auto loan refinancing, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your car in minutes.
FAQ
Can you get one loan if you’re buying two cars at the same time?
Yes, you can get one loan to buy two cars simultaneously, but it depends on the lender’s policies. Some may allow it if you have a strong credit score and can manage the higher loan amount. Others might require separate loans for each car.
How do you get a second car loan if you already have one?
To get a second car loan, ensure your credit score is strong and your debt-to-income ratio is manageable. Shop around for lenders, provide proof of income, and consider a larger down payment. Be prepared for a thorough credit check and potential higher interest rates.
How many car loans can one person have?
There is no set limit to the number of car loans one person can have, but lenders typically consider your debt-to-income ratio and credit score. Having multiple car loans can affect your credit and may make it harder to qualify for additional loans.
Photo credit: iStock/Jinda Noipho
SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
SOALR-Q325-091