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Financing a Car Loan With a Part Time Job: How to Get Approved

Financing a Car Loan With a Part Time Job: How to Get Approved

One type of employee that is often overlooked when discussing car loans is the part time worker. They form a vital part of the Canadian economy and there are hundreds of thousands of them across industry. So how difficult is it to get a car loan as a part time worker?


You will be pleased to know that tour car loan application will be influenced more by how much you earn rather than how you earn it.


We secure car loans for people with no job or those who have only been employed a day. As long as you can prove you can afford the loan, you should qualify for one.


Brantford car loan as a part time worker


Different lenders approach part time workers in different ways. Some have an ideal minimum income requirement to qualify while others don’t. All will need to see evidence of your ability to afford the loan as well and see a good credit score.


If you have a good credit score and can afford repayments, you should qualify for a car loan. You will have to prove it though.


That means proof of all income from work or elsewhere, bank statements to back that up and to show debts, spending and affordability. You will also likely need a letter from your employer outlining that there are no current plans to reduce your hours or dispense with your services anytime soon.


That letter is optional but we have encountered some lenders who had them as a requirement.


Part time workers with low income


If you have a relatively low average income but can still afford a car loan, we can still find you one. It may need a little imagination but we work with some very understanding lenders.


You may have to consider a couple of extra elements to qualify though. They include:


Higher down payment – Offsetting a larger amount of the loan with a down payment can help you qualify for one. It lowers the overall amount of debt plus insures the lender to loss, to a degree.


Coborrower – If you have a partner or sibling willing to come in on the loan with you, that will definitely help. They will need to have a good credit score and also be able to repay but the combined application is usually stronger than an individual one.


Cosigner – Using a cosigner, or guarantor, is another option. You take out the car loan in your own name and use a family member, friend or whoever you trust to guarantee the loan. It’s still your loan but the other person guarantees to repay it if you default.


Coborrowers and cosigners are common ways of overcoming low income limitations for car loans. As long as you can genuinely afford the repayments despite the income, these methods can usually convince a lender to let you borrow.


Nothing is guaranteed of course so if you’re in this position, it pays to work with the experts.


When you’re ready for a car loan, get in touch with the Brantford car loan experts at Northway Ford for great deals on auto finance.


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Categories: Car Loan

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