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Getting a car loan with a new jobPosted January 10, 2018 by Vicki Radford
If you’ve just started in a new job you might need a car in a hurry to get to get a car so that you can get to work on time.
It’s always exciting to make a new start, and you will understandably want to ensure that nothing is going to glitch this opportunity.
Here’s how you can still secure the car loan you need when you’ve just started a new job.
Getting a car loan with a new job
Changing jobs can make it a little bit trickier to get a car loan, as some lenders require you to have completed your probationary period before you can get a car loan.
Luckily not all lenders are like this, and if you’re new job is in the same industry, or very similar to your old job, your chances of getting approved are actually pretty good.
Job consistency is key
When you have a demonstrated history of staying with the same job, and in the same industry, this shows that you have a stable career.
It’s even better if you don’t have gaps in employment. When you are in and out of work, car loan lenders may doubt your ability to repay the loan on time, but if you are continuously employed, it’ll be easier to get a car loan approval with a new job.
If you do have a significant gap in employment, you should give the reasons for this, such as if you’ve taken maternity leave, dedicated time to family or your community, or you’ve been unwell.
To increase your chances of being approved for a car loan when you’ve just started a new job, a stable residential history will support your application. If you can supply tax returns from the previous three years that show how much you have earned, this will help too.
You may increase your likelihood of approval for a car loan by saving a deposit to put towards the purchase price of the car.
A car loan broker is a professional who knows the requirements of each lender can help you to submit the car loan application to the lender who is most likely to approve your car loan, increasing your chance of being approved with favourable terms.
When to apply
If you know you’ll be starting a new job within a few weeks, you might apply for a car loan before you make the switch, if you are certain that you’ll be able to afford the repayments based on your new wage or salary.
Once you’ve been in the new role for 3 months, and you’ve completed your probationary period, you will usually have no issues getting a car loan approved.
If you need to apply during the first three months of your new role, there are still some lenders who will approve your car loan, just speak with a car loan broker to find out where to apply.
What you’ll need to apply:
· Payslips – ideally three months, but you can provide payslips from your previous employer too.
· Tax Return or BAS statements for contract or seasonal employees
· Letter from Employer or Contract of Employment
· Driver’s licence and 100 points of ID
· Some information about the car you want to buy and how it will be used.
· Two personal referees
Your job history shouldn’t be a serious barrier to being approved for a car loan, as there are plenty of ways that you can demonstrate your financial stability to a lender and find a car loan solution to get you on the road.
Good luck with your new job and your next car loan application.