Q&A with OnlineLoans: Can I Get a Car Loan If I Already Have a Personal Loan?

Online Loans

March 26, 2021

You asked, we answered.

Can I Get a Car Loan If I Already Have a Personal Loan?

In short: Yes, you can.

But there are some things to consider

We go over applying for a car loan with existing loans, plus what it can mean when having multiple loans.

It’s well known that you can buy a car with a personal loan, this is called an unsecured car loan. When it comes to getting a car loan on top of an existing personal loan, it’s often a case-by-case situation.

Applying for a car loan

When a borrower applies for a car loan or any form of finance, lending institutions need to make sure the borrower can comfortably pay the loan back. The borrower will, of course, have the typical bills everyone has; food, accommodation, utilities and so on.

Lenders need to make sure that there’s enough cash surplus to cover an additional car loan as well as living expenses and the existing personal loan without getting too tight or leading to a borrower’s financial hardship.

This can be a consideration before getting a car loan. If a borrower is committed to paying off other loans, this may put a squeeze on available funds and not support an additional car loan.

But I can live cheaply

Many of us have lived on a budget. Instant noodles and ‘the bank of mum and dad’ really help. However, lending institutions are typically bound by regulations and risk management calculations. They don’t want to see their clients struggling for essentials.


If you find yourself needing to readjust an existing personal loan to make way for a car loan, talk to your lender. Often, they can find solutions – after all, they want to provide good customer service.

Refinancing is another option for some people.

This means taking out a new loan, separate from car finance, to payout the existing personal loan. In some cases, this can mean more favourable conditions. For example, a longer loan term and lower scheduled repayments, freeing up funds for a car loan. Always make sure to do your research or seek professional assistance to make sure the option you’re looking at is right for you.

A recent personal loan

If you’ve recently taken out a personal loan, you might have to wait a while before taking out a car loan. Typically, lenders like to wait a few months, depending on a borrower’s situation. In other words, you’ll likely need a history of scheduled repayments made to the existing personal loan before taking out an additional car loan.

Payday loans are small loans of up to $2,000. They can often be approved quickly but have very high fees and interest rates. These small loans can put a strain on a borrower’s ability to make repayments on an additional car loan. Typically, lenders are unable to assist borrowers with three or more payday loans.

The next step

Start with an OnlineLoans quick quote. These allow you to consider various options and, upon your selection, get the ball rolling.

Other Q&A with OnlineLoans that may help

Stay tuned for more Q&A With OnlineLoans as we clear up car loan confusion. 

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