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Can You Have Multiple Car Loans on One Car?

It is not possible to get multiple loans for one car. This is due to the fact that there is only one car title and so, only one lender can get it transferred to his name. This is the first lender and hence, has the ownership of the car on loan.

But if you get your car refinanced then the car title can be transferred to the new lender who will then be the owner of the car. In this case, the new lender will pay the loan dues to the first lender. And this way the interest rate will be lowered.

Requirements To Get A New Loan On A Car That Is Already On Loan

You need to know that refinancing your car is the only way to get a new loan. The main goal of getting a new loan is to lower the interest rate. But there are some requirements to get a new loan for your car. These are as mentioned below.

  • The car that is to be refinanced needs to have a good market value. You are already having one car on loan. If you think of buying a second car then you need to have enough income.
  • You need to give proof to the new lender that you have the income to pay the monthly car installments on time.
  • Your present income and loan dues will come in for close scrutiny. It is this aspect that will help you to get a new loan for your car. The new lender will also decide the loan amount which can be provided to you based on this.
  • A lender may ask you to pay a down payment for providing a new loan.

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How Many Car Loans Can One Person Have?

Yes, you can get two car loans at a time but not on one car. But you need to make sure that you will be able to handle the car payments every month. Besides, you need to have a good credit score and income to manage two car loans at the same time. If a lender is satisfied then it will not be a problem to get a new loan to buy a second car.

Thus, one person can have two loans for two different cars at a time. But you cannot get two loans for the same car at a time. If you are paying a high-interest rate on the first loan then you can get your car refinanced to a lower rate. This way you can get a second chance car  loan for your car by paying off the first loan. It will help in lowering monthly car payments.

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William Stiller
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