When you’re unemployed or searching for a job, you may be in need of a car more than ever before. However getting a car loan if you’re unemployed can be difficult, although luckily it’s not impossible.
Work outside the box and speak to lenders who specialise in people with a low credit rating or who have experience helping people who are unemployed to get car loans.
Have You Got Other Income Sources?
Alternative income sources are the best way to prove to a lender that you have the capacity to be able to make car loan repayments.
You may have to think outside the box here but consider whether you have evidence of the following income sources:
Renting a room in your home
Freelance or part time casual work
Keep a record of your bank statements which show incoming funds to help yourself get a car loan when you’re unemployed.
Ask Your Partner or Parent
If you have a partner who is in full time employment or a parent who has a good credit history and the ability to show a good income stream, you may be able to take out a car loan with them.
Always make sure that you have a written agreement in place between you however to avoid disputes further down the line.
Got a Job on the Cards? This could help
If you are currently unemployed but you have a new job on the horizon, some lenders may consider giving you a car loan.
It’s likely you’ll need to provide your new employment contract and a confirmed start date in order for lenders to consider this.
Alternatively, if you’re able to wait until you have started your job and ideally passed your probationary period, you are much more likely to be approved for a car loan and you could benefit from better rates meaning lower costs long term.
Are You Employed but on a Casual or Fixed Term Contract?
Casual and fixed term contracts are increasingly popular within many industries today. Don’t worry if you are currently in and out of work on this type of contract – as long as you have a good history of continuous employment to show.
Lenders may consider approving your car loan if you can show previous tax returns and a good credit history with regards to repayments and stable residency status.
Ask the Experts
There’s so much information available out there, it can be overwhelming. It’s always best to consult expert advice – this often saves huge amounts of time, money and stress. Using expert advice, you’ll generally have access to a wider range, as well as the right type, of lenders who will be able to help you get a car loan when you’re unemployed.