Can I get a car loan if I just started a new job? The simple answer is: Yes, getting a car loan is still possible when you have a new job. However, it might be a bit more challenging. Lenders usually prefer borrowers who have been in the same industry or employed at the same company for at least two years.
If you recently switched jobs or careers and need a car loan right away, the best thing to do is provide proof of a stable employment history. Or, if you’re not pressed for time, you could wait for six months to a year into your new job before applying for a car loan to improve your chances of approval.
When it comes to car loans, all lenders want to know is that you have a reliable source of income to make your repayments.
How does my job affect my car loan application?
Lenders are mostly concerned about your ability to pay back the car loan. Your employment type plays a role in whether lenders think you’re a risk for default. Often, lenders favour borrowers who have been in full-time employment positions for two years or longer. This assures lenders that these borrowers have a stable source of income and can pay back the loan.
Aside from the type of employment and tenure, lenders look at the industry you work in and your total years of professional experience. Those with secure employment or who have extensive experience in one industry are likely to be approved for a car loan, as well.
Take note, lenders have different policies when it comes to a borrower’s employment. Some may be less strict than others. The best way to find out is by asking the lender directly or talking to a finance broker.
Can I get a car loan with a casual job?
Yes, you can still get a car loan even if you have casual employment. But you may have to provide more documents like proof of savings to assure lenders you’re at low risk of defaulting on the car loan. Even with casual employment, lenders may prefer those who have been in the same position, company, or organisation for a year or longer.
The amount you can borrow with a casual income varies from lender to lender. Some may offer up to $40,000 while others can provide up to $100,000. Find the best car loans for casual workers by talking to a car finance broker like CarLoans.com.au.
What employment documents are needed for a car loan?
When applying for a car loan, lenders typically ask for the following from those who have full-time or casual employment:
- Proof of employment (e.g., employment letter or employment contract)
- Proof of income (e.g., recent payslips, bank statements, tax returns, etc.)
- Documents proving other sources of income
The type of documents you need to submit may vary if you're self-employed or run your own business. If that’s the case, you may need to provide tax statements from the business, business activity statements, and the like.
What can I do to improve my chances of car loan approval?
Your employment status is not the be-all, end-all of your car loan application. Aside from employment, lenders look at your credit score, financial history, savings, and debt-to-income ratio just to name a few factors.
By improving other aspects of your finances, you can boost your car loan application and improve your chances of approval.
How can I find the right car loan?
Finding a good car loan with a new job or casual job can be difficult. Some lenders have exacting criteria that may be difficult for some borrowers to pass. This is where finance brokers like CarLoans.com.au can be of assistance!
With our help, you can get the best deal possible on your car loan regardless of your employment status! Request a quote today or arrange a call with our expert finance brokers!