Multiple Vehicle Financing Options

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Vehicle Financing

For as necessary as cars are for day to day life, they can be exceedingly expensive. Even low end models can be hefty on the pocket, making them difficult to afford. For that reason, buyers have looked to alternative ways to buy cars. In recent years, vehicle financing has become particularly popular, enabling Canadians to get their hands on a new set of wheels without having to pay the full price up front.

 

With handsome interest rates and reasonable loan terms, vehicle financing has empowered buyers ten-fold, with some borrowers even going as far as financing two or more cars at once. Of course, not a lot of people have ever found the need to buy more than a single car at any given time. But it does happen.

 

Learn the specifics of financing multiple vehicles at once and find out how you can do it, too, with this in-depth discussion.

 

The Advantage of Buying More Cars at Once

 

Most people would think that buying more than one car at any given time would be a poor strategy from a financial outlook. But there are benefits to buying both cars at the same time.

 

  1. More negotiating power – If you’re eyeing to purchase both cars from the same dealership, then you have more power to negotiate. Auto dealerships are more willing to offer you better prices the more you’re paying. So even if you’re hoping to secure two of the same, low end car models, the dealership is put in the position to earn more off the sale, giving them more leverage to offer significant discounts.
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  3. Lower interest rates – In the same way, your lender becomes more capable of offering you lower interest rates. Of course, there are other factors that impact the rate you get for vehicle financing. But paying more will definitely bid well for the rates you get.

 

What Options Do You Have?

 

Essentially, borrowers have two options when figuring out how to finance multiple cars at once. Each one has its unique pros and cons which may make it more suitable for your specific situation than the other.

 

Personal Loan

 

A Personal Loan

 

A personal loan is a non-collateral loan that’s granted to borrowers for their personal needs. In essence, personal loans don’t have to be spent on one specific purpose. Unlike business loans and auto loans that are restricted for use on the business proposal or car you indicated in your application, a personal loan can be spent however it is that you deem fit.

 

Here’s a quick step-by-step on how you might be able to use a personal loan to buy two cars:

 

  1. Assess the value of the cars you wish to buy. Approach a dealership and ask them for their best cash deal on two cars of your choice. Take your time to shop around. You can visit brand new car dealerships or second-hand car dealerships.
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  3. Once you know how much it will cost to purchase the two cars you’ve chosen, seek out a personal loan provider and start out the application process. Indicate the amount you need to secure both cars.
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  5. Visit the dealership once the amount is granted and purchase both cars through a full payment transaction.
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  7. Pay for the personal loan amortization on a monthly basis until the loan term is complete.

 

Auto Loan

 

An auto loan is a type of collateral loan that lenders grant to borrowers seeking to purchase cars. The amount will strictly be applied to the car you indicate on your application. The vehicle itself will serve as a collateral. If and when you default and fail to pay your amortization, the lender reserves the right to repossess the vehicle in case of no payment.

 

Here’s how you might be able to purchase two cars at the same time through vehicle financing:

 

  1. Visit your dealership and ask for the best deal they can offer for vehicle financing on two units.
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  3. Apply for an auto loan through your chosen lender and indicate the two vehicles you’ve chosen.
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  5. Provide all the necessary documents to support your eligibility for the loan.
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  7. Keep in mind that your lender may opt to finance both cars with separate loans. This helps make it easier for them to repossess the vehicle should you fail to make a payment on one of the loans provided.
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  9. Financing both vehicles under one loan makes it tricky when it comes to repossession because the lender could repossess both cars in case of no payment. However, a single loan could also make it possible for you to negotiate lower interest rates.

 

Final Thoughts

 

Big changes in your day to day life could possibly give rise to the need to purchase two cars at once. If you’re wondering how you can bypass the tricky situation, be sure to check our available resources for everything you need to know about loans. Our extensive database of reliable vehicle financing options expands your horizons and gives you more opportunities to help you get your hands on a set of new wheels or two. Get smarter with your loans and shop around before you seal any deals – check our diverse list of lenders before you take the leap.

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Khadija Bilal

Khadija holds a bachelor's degree in business administration. She is a professional writer with 7+ years' experience in the industry. Khadija has a small family and loves spending time with them.

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