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Can you combine two car loans into one?

I currently have two car loans with the same bank, but it's annoying to have two payments each month. I'd rather combine them into one and get some cash out on top of it. Is it possible to combine the loans?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Yes, you can combine two car loans. 
Combining two
car loans
into one is a common situation that many people do for the reasons you listed.
Consolidating multiple auto loans: you’ll need to take out a different type of loan to pay off your existing car loans. Once you’ve consolidated your auto loans, you’ll only have to worry about one recurring payment on that total balance.
Depending on your new loan terms, here are some advantages that can come with an auto loan consolidation:
  • One monthly payment
  • Lower monthly payment
  • Lower interest rates
  • Lower total interest paid
  • Faster payoff time
Before you apply for an auto loan consolidation: 
  • Understand the pros and cons of the loan type you’re considering
  • Compare the interest rate and new monthly payment to your current loan(s) 
  • Check the terms of the new loan
  • Check to see if there’s a penalty for
    prepayment on your car loan
    , since that might increase your expenses
  • Compare the total costs you’d pay over the life of each loan 
If everything looks good, you can apply in the same way you would with your original auto loans.
View full answer 
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