Question 1

How long should you wait to buy a car after getting a new job?

Accepted Answer

There's no set time frame, but it's advisable to wait until you've established a stable income and assessed your financial situation. Generally, having at least three to six months of steady employment can enhance your chances of loan approval and help you secure better terms.

Question 2

Can a new company get vehicle finance?

Accepted Answer

Yes, it's possible for a new company to get vehicle finance. Lenders may assess the company's financial stability, creditworthiness, and business plan to determine eligibility. Additionally, providing collateral or a personal guarantee can improve the chances of approval.

Question 3

Do finance companies check your job?

Accepted Answer

Yes, finance companies typically verify your employment status as part of the loan application process. They may request pay slips, employment verification letters, or contact your employer directly to confirm your income and job stability.

Question 4

Can you get a loan while doing an apprenticeship?

Accepted Answer

Yes, apprentices can often qualify for loans, including car loans. Lenders may consider your apprenticeship income, prospects for future earnings, and overall financial situation when assessing your application. Providing proof of your apprenticeship and income stability can strengthen your case, but remember you have to be at least 18 years old to apply for any kind of credit.

Question 5

Can I get financial help on an apprenticeship?

Accepted Answer

Yes, there are financial assistance options available for apprenticeships, including grants, bursaries, and loans. You may also be eligible for apprenticeship-specific funding schemes offered by government agencies or educational institutions. It’s worth searching for these online to see what’s available and check if you’re eligible.

Question 6

What happens if I get a car on finance and lose my job?

Accepted Answer

Try not to panic. If you lose your job after financing a car, it's important to contact your lender straight away to discuss your options. Depending on the circumstances, you may be able to negotiate a temporary payment arrangement, defer payments, or explore alternative solutions to avoid defaulting (missing payments) on the loan.

Question 7

Can I get a car on finance on benefits?

Accepted Answer

Yes, it's possible to get car finance while receiving benefits, but your eligibility may vary depending on the lender's policies and your specific circumstances. Some lenders may consider alternative sources of income, such as benefits or allowances, when assessing your application.

Question 8

Does my employment status affect car finance?

Accepted Answer

Yes, your employment status can significantly impact your ability to get approved for car finance. Lenders typically prefer borrowers with stable employment and income, as it demonstrates their ability to repay the loan. However, people with temporary employment or non-traditional employment, such as freelancers or contractors, may still qualify for financing. People with no employment but who are receiving a pension or benefits may also still qualify with specialist lenders, depending on circumstances.

Question 9

Can I get a car financed with no employment history?

Accepted Answer

It can be challenging to secure car finance without any employment history, but it’s not impossible. Lenders may consider other factors, such as your credit score, savings and co-signers (guarantors), to assess your creditworthiness and your ability to repay the loan.

Exploring alternative financing options or improving your financial standing beforehand can increase your chances of getting approved for car finance with no employment history.

Question 10

Should I request a car loan before or after changing jobs?

Accepted Answer

If you know you’re going to change jobs in the near future, it's generally best to wait until after changing jobs to apply for a car loan. Lenders prefer borrowers with stable employment and income, so having a new job in place can strengthen your application. However, if you anticipate any delays in securing a new job, it's essential to consider your financial stability and ability to repay the loan before proceeding with any car finance application.

Question 11

Can I get a car loan with a new job before three months?

Accepted Answer

Yes, it is possible to get a car loan with a new job before completing three months of employment, but it can be more challenging. Many lenders prefer borrowers with a stable employment history of at least three to six months as it demonstrates financial stability and the ability to repay the loan.

However, some lenders may be more flexible depending on your individual circumstances, such as your credit score, income stability, and overall financial situation. It's important to research lenders who are willing to work with people who have recently started new jobs and to be prepared to provide additional documentation or information to support your application.

Additionally, consider factors such as your budget, down payment (deposit), and interest rates to ensure you can comfortably afford the loan repayments.

Question 12

How long do you need to be in the UK to get car finance?

Accepted Answer

If you're new to the UK, you may still be eligible for car finance. Many lenders do prefer applicants who have been living in the UK for at least three years, with three years of address history, although this requirement can vary. Having a permanent address and stable income sources can both help increase your chances of approval for a car finance application, but there may be specialist lenders who would be willing to be flexible depending on your circumstances.

Question 13

Do you need income for car finance?

Accepted Answer

Yes, having some form of income is crucial when applying for car finance. Lenders need assurance that you can afford the monthly repayments, and that your financial circumstances aren’t likely to change in the near future. Your income, along with other financial commitments you may have, will be assessed by the lender to determine your ability to afford all of the repayments.

However, ‘income’ doesn’t always have to be a traditional job. It could be a freelance or temporary position, or something like a pension or benefits.

Question 14

Can you get car finance if you are unemployed?

Accepted Answer

Generally, being unemployed can make it challenging to secure car finance. However, some lenders may consider other sources of income, such as pensions, benefits, or a guarantor's income, to assess your affordability. There are lenders out there who specialise in financing for people with other income sources besides an employment income, so discussing your options with them could help you get car finance if you’re unemployed.

Question 15

Can you get car finance as an apprentice?

Accepted Answer

Yes, apprentices can often qualify for car finance. Lenders may consider your apprenticeship income and prospects for future earnings when assessing your application. Providing proof of your apprenticeship contract and income stability can strengthen your case.

Bear in mind that you will need to be at least 18 years old to get car finance, so if you are an apprentice under 18 you will not be able to get a loan just yet.

Question 16

How long do you need to be employed to get a loan?

Accepted Answer

While there's no fixed duration, having a stable employment history, typically spanning at least three to six months, can enhance your chances of loan approval. Lenders prioritise borrowers who demonstrate financial stability and consistent income.

Question 17

How to get your first loan for a car

Accepted Answer

If you're getting your first car loan, it's a good idea to start by researching lenders, comparing interest rates and loan terms, and checking your credit score before you apply. Additionally, waiting until you have a stable income, saving for a down payment (also called a deposit), and considering a co-signer can improve your chances of approval. A co-signer is somebody (like a family member or friend) who promises to pay back the loan on your behalf if you can’t make the repayments for any reason. You may have also heard them referred to as a guarantor.

Question 18

How to get a car loan without a job

Accepted Answer

Getting a car loan without a traditional job can be challenging but not impossible, so long as you have some form of regular income from elsewhere. Search for lenders that specialise in financing for people with alternative income sources, such as freelancers, entrepreneurs, retirees or people on benefits. You will then need to provide evidence of a consistent income from a valid source, and show that you can afford the repayments.

Question 19

Can I get a car loan with a temporary job?

Accepted Answer

Yes, individuals with temporary employment can still qualify for car finance. Lenders may assess your income stability, job prospects, and ability to repay the loan. Providing documentation of your temporary employment contract and any additional sources of income can support your application.

Question 20

Can I get car finance after starting a new job?

Accepted Answer

The short answer is yes, you can still get car finance even if you've recently started a new job. However, lenders typically look at various other factors to help them determine your eligibility and how likely you are to be able to repay the credit. This includes things like your employment history and stability, your income amount and your credit history.

Question 21

How long do you have to work before getting car finance?

Accepted Answer

While there's no strict requirement for the length of time you need to work before applying for car finance, most lenders prefer borrowers who have a stable employment history. Generally, having at least three to six months of employment (in the same role) can increase your chances of approval. However, this can vary depending on the lender's policies and your individual circumstances.

So, if you can, it’s a good idea to try waiting at least three months after you start your new job before you apply for car finance.