Can I take out more than one loan to buy a car?

I want to buy a new car, but the lender will only approve me for a partial amount. Can I take out a second loan to get the rest of the money?

Answer
Good question! You can have two loans to pay for a car, but it’s not advisable.
If you weren’t approved for your initial car loan, it’s possible that you’re asking for money for a car that’s outside your budget. While you could get another loan to pay for the car, having two loans with two different interest rates could hurt your credit score or put you into a large amount of debt.
Furthermore, in order to cover the remaining amount, you would have to get a personal loan. However, personal loans are based upon your credit score. Even if you have a great credit score, you’re likely looking at an interest rate as high as 10% to get the money you need.
You still have options, though! Try looking at cars that are more in your budget, or alternatively, save extra money for a bigger down payment on the car you want.
If you manage to save enough money for a down payment or you choose a different car, don’t forget to look for the best rate on your full coverage auto insurance. To do this easily, use the Jerry app! We’ll get you customized quotes from top providers so that all you need to do is choose the plan that works best for you.
Best of luck! Hopefully you’ll be able to revisit getting a loan for your ideal car in due time.
Eric Schad
Answered on Oct 29, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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