Can You Get Car Finance if You Work Part-Time?

In today's dynamic job market, the traditional idea of employment has changed and evolved significantly. Many people choose part-time work for various reasons, including flexibility, pursuing education, or balancing family and other personal commitments. However, one common concern among part-time workers is whether they can secure car finance. So, we’ve put together this guide to help provide clarity for anybody seeking car finance for part-time workers.

Can part-time workers get car finance?

Yes! Part-time workers can absolutely secure car finance. Lenders look at loan applications based on lots of different factors, not just full-time employment. These include things like the stability of your income, your credit history, and debt-to-income ratio. While some lenders may prefer applicants with full-time jobs, many recognise the growing popularity of part-time work and consider it a valid source of income.

As long as you can demonstrate you have enough income to afford the monthly payments, meet the lender's requirements, and maintain a good credit standing, you stand a good chance of getting approved for car finance as a part time worker.

Can you finance a car without a full-time job?

Absolutely. While having a full-time job can strengthen your financial profile in the eyes of some lenders, it's not the sole factor that secures car finance approval. Lenders consider various different types of income sources, including part-time employment, freelance work, investments, benefits or other forms of income when evaluating loan applications.

Can you get a car on finance without a permanent job?

Yes, you can still qualify for car finance without a permanent job. Lenders typically assess your overall financial stability and your ability to repay the loan. As long as you can demonstrate a steady income from your temporary job, part-time job or other sources, you may be eligible for car finance even without a permanent job.

How long do you need to work to get car finance?

The duration of employment needed to qualify for car finance varies from lender to lender. While some may prefer a minimum employment period to assess stability, others may prioritise your income and ability to repay the loan. Generally, having a consistent employment history, even if part-time, can bolster your chances of approval. If you start a new job, three months is a good amount of time to wait before you apply for car finance to demonstrate your job stability.

How much do you need to earn to get car finance?

The income requirements for car finance differ depending on the lender and the cost of the vehicle you intend to finance. Lenders typically look at your income against your existing financial obligations to determine affordability. While there's no fixed income threshold, earning a stable income that comfortably covers your expenses and allows for loan repayments enhances your chances of approval.

Can I get a car on finance if I don't work?

If you're not employed, obtaining car finance might pose challenges since lenders prioritise income stability and repayment capacity. However, individuals receiving alternative forms of income, such as pensions, investments, benefits or rental income, may still qualify for car finance. Additionally, having a co-signer with stable employment can improve your approval prospects for a guarantor car finance loan.

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

Losing your job after getting car finance is understandably stressful. If this happens, it's important to tell your lender straight away and ask about your options. Some lenders offer assistance programs, payment plans or temporary relief options to borrowers facing financial hardships, such as delaying or restructuring loan payments. Transparency and proactive communication with your lender is always the best policy, as it can help avoid difficulties and unwanted consequences along the way.

How do you prove employment for car finance?

When applying for car finance, lenders typically ask for proof of employment to verify your income stability. Common documents they ask to see include recent pay slips, employment contracts, tax returns, or bank statements showing regular deposits of money into your account. Providing accurate and up-to-date employment information strengthens your loan application and speeds up the approval process.

Can I get car finance on universal credit?

Securing car finance while on universal credit can be challenging, as lenders may perceive it as unstable income. However, some specialised lenders offer finance options tailored to individuals receiving universal credit or other benefits. It's a good idea to spend time researching lenders who specialise in helping people get car finance on benefits, and to ask them to check your personal eligibility criteria.