To call the past couple of years tumultuous is something of an understatement. The world has changed completely and families across the globe have found themselves in difficult situations. So is buying a car with no job still a possibility?
Our car loan team explains your options.
Buying a Car With No Job
If your job was your only source of income, you usually won’t be able to get a car loan.
If you have other income from rent or investments that could cover the payments and have an excellent credit score, you may be able to get a car loan.
Without a source of income to cover loan payments, you won’t be able to finance a car loan when unemployed.
Car Loans and Unemployment
It may seem like an impossible situation for some. You need a car to find a job and get to work but need work to get the loan to buy the car. If you don’t have a car already, used to have a company car or drive an employer’s truck, that’s a typical situation you may find yourself in.
As we said above, unless you have a form of income from elsewhere to cover payments, buying a car with no job is very unlikely.
That income could be from a pension, investments, rental income, social security or something else. The form of the income is less important than its reliability and regularity.
If you have that and a good credit score, you could get a car loan.
If you don’t, it is very unlikely that any lender would agree to lend. Any that did would very likely charge high interest rates to cover the risk.
So, what are your options?
Buy a cheap runabout with cash or savings: The most viable option is to buy something cheap and cheerful that will get you around while you find a new job. It’s much less than ideal and depends on you having cash or savings to purchase though.
Borrow money from a friend or family: Not the most ideal situation but it opens up avenues if you don’t have the cash. Borrow the cash for a cheap runabout from someone and pay them back when you get a job.
Borrow a car from someone: If you don’t want to borrow money, you could borrow a car. Even if it was just for interviews, borrowing a car can keep you mobile while you get back to normal.
There are other options such as ‘buy here pay here’ offers and others but we wouldn’t recommend those. Unless you have a source of income, you will struggle to pay them and the interest such offers charge can be extortionate!
In summary, if you are unemployed but have income, you may be able to get a car loan in. Either using your own credit score, a cosigner or a large down payment.
If you don’t have other sources of income, you won’t be able to get a car loan. We’ll be here for when you do though!
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!