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How Many Car Loans Can One Person Have?

One person can have as many car loans as he or she can get. There are no laws preventing someone from taking on two, five, 10, or even 1,000 car loans at one time.

Now, just because you are legally able to have multiple car loans at any one time, it does not mean that you will be able to (or even should). This will depend upon your income and your credit history. After all, a lender wants to make sure it gets repaid, so it will look at your past credit and current financial situation to determine whether or not giving you a loan is worth the risk. Unless you have truly exceptional income and credit, it will be difficult to finance more than two cars at once.

Since paying back two concurrent car loans is tougher than paying just a single loan, lenders will often charge a higher interest rate for the second loan to make up for giving a loan with a higher risk of default. For this reason, it is typically better to finance only one vehicle at a time. For a household, it may be better to place each vehicle under a single spouse’s name, as opposed to placing multiple loans under a single spouse. However, will largely depend on the credit and income of each person.

If you apply for financing through us, you can speak with a finance specialist who can help you determine which scenario is best in terms of interest rate, risk of default, and repayment terms.

About the Author

The author has many years of experience in automotive finance and insurance. However, each consumer's situation is unique. It is best to contact a finance specialist for further assistance.
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