How many cars can you have on finance at one time?

Is there a limitation on how many cars one person can have on finance at any one time?

Asked by Stacey
February 2, 2022

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.

My monthly budget is

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Rates from 8.9% APR. Representative APR 19.9%

My monthly budget is

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Rates from 8.9%: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £10,000 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed) and a deposit of £0.00, the amount payable would be £255.50 per month, with a total cost of credit of £5,329.80 and a total amount payable of £15,030.

We look to find the best rate from our panel of lenders and offer you the best deal that you're eligible for. We earn a commission for providing our services, but this does not influence the interest rate you’re offered in any way.

Amount to borrow

To pay over

5 years

Assuming your credit profile is:

Total cost of credit	£ 2000
Total repayment	£ 2000

48 monthly
payments of

£ 245 98

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Rates from 9.9%: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £25,000 over 48 months, £3,750.00 deposit, on PCP, with annual mileage of 8,000pa, and a representative APR of 11.9%, an annual interest rate of 11.9% (Fixed), the amount payable would be £394.51 per month, an optional final payment of £7,194.33, with a total cost of credit of £9,912.36 and a total amount payable of £28,444.33.

We look to find the best product from our panel of lenders and will offer you the best deal that you’re eligible for. We earn a commission for providing our services, but this does not influence the interest rate you’re offered in any way.

Hire Purchase (HP) related questions

Hi Rachel, I only have one wage slip. Do i need to get more?

Asked by Rachel
February 2, 2022

Hi Rachel, apologies for the delayed response. To be honest it all depends upon who you get approved with.

If you have a good credit history and you get approved with one of our prime lenders you may not have to prove your income however, if you have a fair/poor credit history and you get approved we'll need 3 months payslips or 3 months bank statements showing your income. Kind Regards, Rachel

Hi, I'm 18 wanting a car on finance. I have a £2500 deposit and work full time, what's the chances of getting finance and how could I increase my chances? Many thanks.

Asked by Jacques knight
February 2, 2022

Hi Jacques, thank you for your question.

You have a deposit, and regular income which will help us to find you an approval. Are you on the electoral roll? Do you have any active credit in you own name such as a mobile phone contract? These factors would help.

Please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Hello, I would like to apply but before I do I was wondering what is the application criteria for a car loan?

I have a very poor credit score even though I've never had a bank loan, an overdraft or anything but thanks to bank charges on m

Asked by Carly
February 2, 2022

Hi Carly, a great question that i'd be glad to answer. Firstly, we'd need 3 months wage slips to get you accepted for a car loan. Moving on - some tips to improve your credit score and give you a better chance of obtaining car finance are as follows. 1) Make sure you're on the electoral roll at your current address and that your current credit is registered in this address.

2) apply for a small limit credit card with your bank and setup a direct debit to cover the minimum monthly payments.

3) Get a contract mobile phone and don't miss any payments - again direct debit is the best way to go.

4) Have a small deposit ready as this can strengthen your application chances.

5) Make sure you have a full UK licence if you haven't already.

6) Don't apply to multiple companies for a loan as the more searches you have against your name the lower your score will go.

I hope this helps and i look forward to receiving your application. Please apply when you're ready to do so and once approved we provide a no obligation quote and you can buy a car from any dealer in the UK. Kind Regards, Rachel

Hi. I have no adverse credit on my file. Currently renting a private house and just been added to electoral roll. I pay my bills every month on time. I use my overdraft and have a credit card and mobile contract. I have a personal loan and car hp which I

Asked by Richard
February 2, 2022

Hi Richard, thank you for your question. The fact that your partner has bad credit wouldn't effect your chances of getting a PCP or HP agreement as long as you apply on your own. The fact you were declined for a card and loan recently may well be down to your electoral roll history. Are you now on the register? If so, great! If not we can still help but all your current credit would need to be in your current address. You'd also need a proof of address, payslips and a copy of your licence.

What is your preference a PCP or £10k hire purchase agreement? With a PCP you rent the car for a period and either hand the car back at the end of the agreement of purchase the vehicle for a GFV (guaranteed future value). The lenders that offer PCPs do require customers to have good credit. With a HP (Hire Purchase) agreement, you make monthly repayments for a set period time. At the end of this period of time, you will have made all repayments and will have cleared the finance - leaving you as the owner of the car.
Please make an application and once approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Hello, My partner wants to get hire purchase but has a bad credit rating. On the other hand i have a really good credit rating but he is the one that has the driving licence. Can we still get car finance or not?

Asked by Maria
February 2, 2022

Hi Marie, Yes this is possible as we have lenders on our panel that will look at joint applications. It will also strengthen your partners application from the lenders point of view if you’re on the finance agreement as you have good credit and your partner has poor credit.

There is a possibility of getting your partner approved just on his own as we have many lenders who offer bad credit car loans however, we might be able to get a better rate if you apply alongside your partner.

Please be aware though that if you go ahead on a joint car finance deal and your partner doesn’t keep up with the repayments then it will effect your credit rating also.

Please make an application and once approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Hello, My daughter is 23 and she is taking lessons. Does she need to have been driving for a period of time before she can apply for car finance? Thank you

Asked by Colin
February 2, 2022

Hi Colin, thank you for your question!

As your daughter is 23 she is old enough to apply for car finance. She doesn't have to have been driving for a minimum period of time. However, having a full UK licence does improve our options. I'd recommend holding off applying until she has passed her test.

When she's ready you can make an application here and once approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Hi, i have my car on HP which i took out 6mths ago, however my partner requires a car so wanted to know if i am able to take out a 2nd HP agreement (especially so soon after starting my own)?

Asked by Amanda
February 2, 2022

Hi Amanda, it is possible for individuals to have 2 HP agreements in their name. However you'd have to say that the 2nd car was for you as if you say it's for your partner they won't finance the agreement. Also lenders can get a little twitchy if they think that you're over committed. Some lenders may request that you settle off your existing agreement before giving you a new loan but it all depends upon your income and how much extra you're looking to finance. Have you asked your current finance provider for another loan or have you applied for any other personal loans? If so, what was the outcome? Kind Regards, Rachel

Hi Rachel, I'm after a car loan very quickly. Can you give me an instant decision if i apply for car finance today? Please hurry back, Y!

Asked by Yukko
February 2, 2022

Hi Yukko, thank you for using the Q&A.

When we receive applications, we'll take a look at them in detail to ensure we are finding the best deal for individual circumstances, with our aim being to get a decision back to our customers within 1 hour.

Please make an application when you're ready, and if approved, you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Hello, I currently still have 3 more monthly payments to make on a car loan i have with creation finance.

Would you be able to settle that and add it to a new finance agreement with you?

Asked by Scott
February 2, 2022

Hi Scott, thank you for your question.

As you only have 3 more payments to make to Creation Finance i'd imagine your car is worth more that the balance owed. Basically, you can part exchange your current car at any dealer of your choice and they will settle the finance and you can use the equity in the car as a deposit towards a newer vehicle. Let's say your car is worth £3000 and you owe Creation £750 that would mean you have a £2250 deposit towards a new car.

We can beat dealer rates so we'd love to supply your new finance agreement. Please make an application and once approved you can choose a car from any dealer and we also provide a no obligation quote. Kind Regards, Rachel

I just got 2 cars - one for my wife and one for me. I am trying to get another car. Do you think this is possible? My credit is kind of bad.

Asked by Jose
February 2, 2022

Hi Jose, as long as you can show that you can afford the repayments you'll be fine. Lenders may think you're over exposed however if you have too many live agreements. Please make an application and we'll take a look. Kind Regards, Rachel

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CarFinance 247 is a trading name of CarFinance 247 Limited. Registered office: Universal Square, Devonshire Street North, Manchester, M12 6JH. Registered in England. (Registration Number 06035525).

CarFinance 247 is authorised and regulated by the Financial Conduct Authority for insurance distribution and credit broking (Firm Reference Number: 653019). CarFinance 247 is registered with the ICO (Registration Number Z1897658).

Finance is subject to status and is only available to UK residents aged 18 and over. Written quotations are available on request.

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