There’s no limit to how many cars you can have on finance at one time. The number of finance agreements that you can be approved for would depend on your individual circumstances, credit history, and affordability. It isn’t unheard of for people to have two or three car finance agreements in their name.
Finance providers must lend responsibly and make sure that borrowers don’t end up taking out loans that they can’t pay back or will leave them with no money left over to pay for essentials. Car finance is a commitment and agreements can last for several years so it’s important to be aware of the effect they might have on your financial health. You should only consider taking out more than one car loan if you can comfortably afford it.
Think about timing when you apply for a second or third car finance agreement. When you take out a new deal, you might see your credit score decrease slightly as you’re taking on a large new debt. It should recover quickly once you start paying back the loan, but a lower credit score could make it more difficult for you to secure another agreement straightaway.
Making a lot of finance applications that leave hard searches on your report can also impact your score. When you get a quote with CarFinance 247, we’ll run a soft credit check to see if we can find you an approval from one of the lenders on our panel. A hard search will only take place if you decide to proceed and take out an agreement.