Quite a bit of information exists in the world of Ontario auto loans, and someone might have told you that buying a new car with an existing loan is impossible. Well, that’s not really true. Your eligibility to get another car loan depends on a few factors.

Are You Paying?

Now, of course, buying a new car with an existing loan is going to be almost impossible if you are not paying the first loan off. From the lender’s perspective, you are a huge risk. You have not been paying the other loan, so this lender has absolutely no guarantee that you are going to make an effort to pay this one. If you want another loan in the future including an online auto loan, you must start paying off the one you have.

Your Credit Scores

If you have a lot of loans out and a number of problems with credit, getting qualified is going to be a bit of a struggle. When you are approved for a loan, line of credit and some other types of payment plans, the lenders have looked at your scores. In the event that low scores show up, the lenders know that you are not a person who can be trusted to make the payments.

Getting Approved

Even if you are paying bad credit financing for used cars in Ontario, you still might not get approved for the loan. Basically, people cannot just keep taking one loan out after another. For those who have huge sums of monthly income, it might be possible to have several loans. However, for the vast majority of people, their monthly incomes are just not going to be enough to cover all of these different loans payments. Therefore, you need to realize that the amount of money you make is going to factor into the equation as well.

Yes, you can purchase a new vehicle when you already have a loan out. However, you must consider:

• Whether or not you are paying the loan you currently have out
• How high or low your credit scores are
• If the amount of money you make might stop you from getting approved

Many in Ontario people are going to be happy that they have the opportunity to get a new car when they already have a loan out. Ultimately, the decision is up to the lender, feel free to apply here with us at OntarioCarsOnCredit.com to see what we can do for you.