Job changes and career advancements have become increasingly common in today’s world, but how does this affect your chances for securing car finance?
Can you get car finance with a new job, or do you need to meet certain criteria before applying for a car loan? Will being in a brand-new job hurt your chances of getting approved? In this article, we’ll answer some of the most common questions about car finance for those who have recently started a new job, including apprentices and people with temporary employment.
Can I get car finance after starting a new job?
The short answer is yes, you can still secure car finance even if you’ve recently started a new job. However, lenders will consider several other factors to assess your eligibility and ability to repay the loan. These factors include your employment history and stability, your income level, and your credit history. They may also ask for a copy of your employment contract.
How long do you have to work before getting car finance?
There’s no set rule for how long you need to be employed before applying for car finance, but most lenders prefer applicants with a stable work history. Typically, having at least three to six months in the same role can improve your chances of approval. However, this can vary based on the lender’s criteria and your personal situation.
If possible, it’s a good idea to wait at least three months after starting your new job before applying for car finance.
Can part-time workers get car finance?
Yes, part-time workers can secure car finance! Lenders assess loan applications based on various factors, not just full-time employment. These include the stability of your income, your credit history, and your debt-to-income ratio. While some lenders may prefer full-time workers, many understand that part-time work is a valid and reliable source of income.
If you can show that you have enough income to cover the monthly payments, meet the lender’s criteria, and maintain a good credit standing, you have a strong chance of being approved for car finance as a part-time worker.
Can you get car finance if you are unemployed?
Being unemployed can make it more difficult to obtain car finance, but it’s not impossible. Some lenders may take other sources of income into account, such as pensions, benefits, or a guarantor’s income, to assess your ability to repay the loan. There are lenders who specialise in offering finance to people with non-employment income, so exploring these options could help you secure car finance even if you’re unemployed.
What happens if I get my car on finance and lose my job?
Losing your job after securing car finance can be very stressful. If this happens, it’s important to contact your lender immediately to discuss your options. Many lenders offer programmes, payment plans, or temporary relief options for borrowers facing financial challenges, such as deferring or restructuring loan repayments. Being open and proactive with your lender is always the best approach, as it can help prevent complications and avoid any negative consequences down the line.
Do you need income for car finance?
Yes, having a source of income is essential when applying for car finance. Lenders need to be confident that you can manage the monthly repayments and that your financial situation is stable. Your income, along with any other financial obligations, will be evaluated to determine if you can afford the loan.
However, your “income” doesn’t necessarily have to come from a traditional job. It could include earnings from freelance or temporary work, as well as income from pensions or benefits.
How long do you need to be in Ireland to get car finance?
If you’re new to Ireland, you may still be eligible for car finance. While many lenders prefer applicants who have lived in Ireland for at least three years and have a three-year address history, this requirement can vary. Having a permanent address and stable sources of income can improve your chances of approval, but some specialist lenders may be more flexible and willing to consider your circumstances.
Can you get car finance as an apprentice?
Yes, apprentices can often qualify for car finance. Lenders will typically take your apprenticeship income and potential for future earnings into account when evaluating your application. Providing proof of your apprenticeship contract and demonstrating income stability can help strengthen your chances.
However, keep in mind that you must be at least 18 years old to apply for car finance. If you’re an apprentice under 18, you won’t be eligible for a loan just yet.
Can I get a car loan with a temporary job?
Yes, individuals in temporary employment can still qualify for car finance. Lenders will assess factors such as your income stability, job prospects, and ability to repay the loan. Providing proof of your temporary employment contract, along with any other sources of income, can help strengthen your application.
Can I get car finance as a carer?
Absolutely, being a carer does not automatically disqualify you from obtaining car finance. Many lenders are open to working with individuals who receive a carer’s allowance. However, your eligibility will depend on several factors, such as your credit history, total income, and the lender’s specific requirements.
Can I get car finance as a full-time carer?
As a full-time carer, your income may primarily come from carer’s allowance or other benefits. While this could impact your eligibility for certain types of loans, it doesn’t mean you can’t secure a car loan. Lenders will take your overall financial situation into account, including your credit score and ability to make repayments. Some lenders specialise in providing car finance to individuals on benefits, so exploring these options can improve your chances of a successful application.
Do benefits count as income for car finance?
Yes, benefits like carer’s allowance or disability benefits are considered income when applying for car finance. However, lenders may have varying criteria for applicants who receive benefits, and the amount of benefit income you receive could influence the terms of the finance offer. To maximise your chances of approval, ensure that you provide accurate information about your income sources when applying, and consider looking for lenders who specialise in working with people on benefits.
Can you get car finance on disability?
Yes, individuals with disabilities can generally access car finance just like anyone else. Your eligibility will depend on factors such as your credit history, income, and ability to make repayments. Some lenders offer specialised finance options for people with disabilities or those receiving disability benefits, so it’s worth exploring these options to find the best deal for your situation.