This paper examines the behavior of multi-lane freeway traffic past on-ramps, building on the continuum model of part I and focusing on the onset of congestion. The main complication is that rabbits (fast vehicles) entering from an on-ramp usually stay on the shoulder lane(s) of the freeway for some distance before merging into the fast lane(s). An idealization is proposed, where this distance is taken to be the same for all vehicles. As a result, the system behaves as if there was a fixed buffer zone downstream of the on-ramp where entering rabbits cannot change lanes. The model of part I...