The Great Resignation is still in full effect; if you’re getting a car loan with a new job, there are some important things you need to be aware of before you can drive home in your new vehicle.
If you stick around with our car loans team until the end of this conversation, you should have no problems.
Is Your New Job Similar to Your Previous One?
Lenders love consistency; it allows them to predict future income and avoid issuing loans that stand a better-than-average chance of not performing.
If you work in a specific industry and switch to a new role in the same industry, getting a car loan with a new job will be a lot easier.
If you work in a specialized field, say medicine, and you went from working at a hospital to opening your own clinic, then lenders would have no issue approving a car loan because you are in the same field.
If you are in a brand-new field, it does not mean you cannot get a car loan with a new job; the field you work in also plays a role in whether you can get approved for a car loan.
Some industries like hospitality got hit hard during the pandemic and are only starting to recover now.
Borrowers in this industry would need to be on the job for at least ninety days. This ninety-day is not some random number but a legal threshold; if a person works with the same employer for ninety days, they would have completed their probationary period and are now considered an employee; This means the person cannot just be let go without a legitimate reason.
Another reason why lenders request prospective borrowers be on the job for 90 days is it will give them a chance to calculate what is your average monthly income.
Whenever you start a new job, especially if you are paid hourly, it can take a few months before you get into your groove.
Getting a Car Loan With a New Job After 3 Months
If you have been in post for between 3 months and a year, you can also access a wide range of auto loans. Some mainstream lenders won’t want to know but many of our specialist lenders are only too happy to lend.
You will need to prove you’re in a full-time, permanent position and can afford the loan but as long as you have the paperwork and the credit score, you should qualify for a loan.
Getting a Car Loan With a New Job Before 3 Months
We work with some lenders willing to lend to people with as little as 24 hours in post. These are niche loans but are definitely possible (like with us!).
They are ideal for the scenario we outlined above. You start a new job, can no longer use public transport, and need funds in a hurry to get to work.
You will need the offer letter from the employer stating the offer, that it’s a permanent position and showing the salary. If you have other income, using that to support your application will definitely help.
Getting a Car Loan With a New Job After Just 24 Hours
Did you know it is possible to get a car loan even if you have only had your job a day? Well, it is! This can be very useful if you used to walk or get the bus to your old job but now have to drive to your new one.
You will have to prove income, and have an offer letter or letter from HR outlining your role, the salary, and whether it’s permanent, full-time, or something else. As long as you qualify for the loan in other respects, we can find you a great deal on a car loan even if you’re in a new job.
Car loans have moved on a lot from those bad old days of having to go to the bank manager cap in hand begging for a loan. Now it’s a competitive market with many types of lenders all vying for your custom.
While there are still criteria and a raft of rules in place, the market is now much more open and much more willing to consider all kinds of situations. New employees are just one of those situations.
Increase Your Credit Score
The biggest variable that can work in your favour when getting a car loan with a new job is your credit score.
Suppose you have been responsible with your finances. In that case, there is no reason to expect you will not be responsible for your finances going forward.
To access the best financing terms, your credit score needs to be 720 or higher, but if your credit score is low, you can still get approved, provided you are working with the right professional.
Finding the Right Lender
You will not be able to find the right lender on your own. Sure there are websites that provide information, but the best lenders do not advertise to the general public online.
Therefore, it would be prudent on your part to contact your local car dealership and find out what loan options are available to you.
The dealership will know which lenders are going to give you an amazing deal and can help ensure you get approved for a car loan even if you are having credit challenges.
If you’re ready to get a new car loan, we’d love to help! Simply click here and fill in the form on the page to get pre-approved today.