388 King George Rd, Brantford, ON, N3T 5L8
My Garage

Car Loans for Part Time Workers In Cambridge

Car Loans for Part Time Workers In Cambridge

It’s question and answer time again. This time, a fairly common question our teams are asked, 'are car loans for part time workers a possibility?’

Employment is a significant influence over car loan eligibility. A lender won’t agree a loan unless you can demonstrate you can afford it. Part of that will obviously be down to income, which is where part-time workers can often fall short.

It isn’t the part-time aspect that provides the challenge. It’s the actual income. Lenders don’t actually care where your income comes from as long as it’s legal. They only care that you can afford repayments.

Income requirements and Cambridge car loans

To qualify for a Cambridge car loan, you have to be able to afford repayments. If you’re fortunate enough to have a well paying part-time job, you should have no problem qualifying.

There is no concrete rule for income, but a typical car loan would require around $1,500 to $2,000 per month income to be affordable alongside living expenses.

That kind of money can be a challenge to part-time workers.

Overcoming income challenges as a part-timer

You’ll notice we say being part-time provides a challenge in Cambridge car loan applications. It doesn’t make them impossible. Just more difficult.

You do have options though.

Other income sources

If you’re part-time because you have other income, this can help affordability. If that income is sufficient to repay the loan without leaving you in difficulty, you should be able to get a car loan.

You’ll have to prove your income though. Expect to provide paperwork to prove that income and demonstrate that it is regular and for the foreseeable future.

Down payment

If you’re putting a lot of money down, this can help lower the risk for the lender. The larger the down payment, the lower the loan, which feeds into affordability.

A large down payment shows the lender you’re serious by putting your own money on the line. The down payment also insulates the lender from loss, so they are more predisposed to lending.

Get a co-borrower

Using a co-borrower can also help if you’re part-time. If you know someone with a good credit score and who earns enough to help you qualify, that would help your situation.

A co-borrower comes in with you on the loan. They are equally liable for the payments and would theoretically, equally own the car once it was paid for. You would need to think carefully about who you co-borrow with!

Cambridge car loans for part time workers

Nothing is impossible when you put your mind to it. If you’re lucky enough to earn well as a part-time worker, you’ll have no problem getting a car loan. The same for if you have other income sources sufficient to repay the loan.

If your income falls short, topping it up with a large down payment or using a co-borrower can help. Both can persuade a lender that you’re a safe risk and make them agree the loan.

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

Categories: Car Loan

Tags: ,