Getting a Second Car? How to Stay Financially Stable

If your family has grown over the last few years, then you might need to think about purchasing a second car. Having an additional car to run errands or commute to work is going to make your life much easier, but two monthly payments can put quite a strain on your finances. These few tips will help you stay financially stable after being handed the keys to your second vehicle.

Keep Your Credit Score Up

Dozens of different variables are taken into consideration when calculating your credit score. That includes open credit accounts, total debt, types of debt, current income, and the amount of time you have been tracked. Keeping your credit score at a reasonable level is going to bring your interest rates down and make your second vehicle much more affordable.

Work with Your Last Car Salesperson

If your last salesperson made your experience enjoyable, then you should try to go back to the same dealership. Auto dealerships love repeat customers because they know that you are willing to make a purchase and already have most of your data. You can quickly give your last salesperson a call and explain what type of vehicle you are looking for and your price range. Instead of shopping around, you can head to the dealership when they find a car that meets your specifications.

Bundle Your Insurance

Your insurance premiums will go up with a second vehicle, but you can still save some money if you plan ahead. Before purchasing a second car, you should contact a few different LA insurance providers to see if any will offer you a discount on a multi-vehicle policy. Some companies might even offer to bundle your home insurance with your auto insurance. Bundling multiple policies could reduce your premiums by hundreds a year.

Bundle Your Loan or Refinance

Consolidating multiple auto loans is another tactic that you can use to reduce your monthly expenses. Your current lender might have already pre-approved you for a second loan if you have consistently been making payments on time. Lenders want to retain consistent customers, and they will go out of their way to keep you as a client. Before refinancing, you should make sure that your second loan has been approved because a “hard” credit inquiry will lower your credit score for a month or two.

There are many different benefits of having a second car in your garage, but you need to keep a close eye on your finances before making any large purchase. It’s not as simple as just paying the cost for the car itself. Additional expenses could sneak up on you if you aren’t careful, and no one wants to have missed payments and defaulted loans on their credit report.