If you just started a new job and need to buy a car, there are some unique challenges you will need to overcome before you can drive home in your new vehicle.
The Great Resignation has spread from the U.S. to Canada and around the developed world. Companies are scrambling to fill positions by offering more money and better perks like working from home.
One of the challenges you will face though if you just started a new job is being able to qualify for a car loan.
With rising interest rates, lenders are under tremendous pressure to underwrite new loans but only issue those loans to the most creditworthy borrowers.
These loans are underwritten with the greatest of care and scrutiny, so you need to make sure you are painting the most positive picture.
Importance of having a solid credit score
Your credit score is comprised of a three-digit number, but it says so much about how you handle your finances.
If your credit score is 700 or higher, you are considered to be responsible with your finances, and most lenders will want to get your business.
Having a great credit score is vital, but that is just one piece of the puzzle.
Along with having a good credit score, your income needs to be sufficient to cover your current obligations, plus the new car loan.
Car loans in Canada vary depending on the type of vehicle you purchase, but a safe bet is five hundred dollars per month, but that is just an average.
Calculating your disposable income
Since you started a new job, one of the biggest challenges that prospective lenders will have is being able to calculate how much cash you have available for your debts; the reason this is difficult to calculate is that you are in a new role, and your income has not been established.
However, there are some things you can do to help allay the legitimate concerns these lenders may have.
If you are a professional working in the same industry but with a different company, this can go a long way in addressing the concerns lenders may face, especially if you have an employment letter from a well-established company.
Another item that will help increase your chances of having the car loan approved is completing the initial probationary period of the job.
During this period, either you or the employer can end the working relationship without cause. After you have completed this period, you cannot be let go without a valid reason.
Where to get approved for a car loan with the best terms
You need expert support when sourcing for a car loan; this is not something you should attempt on your own.
The best way to get approved for a car loan when you have just started a new job is by working with a local car dealership in your area.
The dealership knows which lenders will be willing to work with you and give you a fair shake. These dealerships also have vehicles available in their inventory that you can drive home today, so contact your local dealership now and get things rolling.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!