Can I get a car financed with no employment history?

Roman Danaev

16 November 2022

Of course, you can! The only issue is that getting a car financed with no job may take longer than getting a regular car loan. Lenders are just as concerned as you are about making sure you can handle the monthly payments without a steady income. Therefore, you may need more paperwork to prove your income since you don't have a work history.

If you don't have a bad credit history, this process can become even easier for you. Carplus works with many lenders, so we will try to find one willing to help you. By the way, the process of getting a car financed for unemployed people may become more accessible if you have a guarantor. It should be a person with a good credit rating and a job. The guarantor will guarantee your payments for the entire term of the loan.

What If you have just become unemployed?

If you have just become unemployed, but have a good credit score, you may be able to get car finance. However, the interest rates may be higher than if you were employed. It is also important to have a down payment, as this will show lenders that you are serious about making your payments.

If you have just become unemployed and have a bad credit score, you may still be able to get car finance, but the interest rates will be higher. It is important to have a down payment, as this will show lenders that you are serious about making your payments.

I have enough money in my account, so can I get car finance?

If you have enough money in your account to cover the down payment and the monthly payments, you may be able to get car finance. However, your interest rates may be higher than if you were employed.

Can I get car finance if I’m on benefits?

It's possible to get car finance on benefits even if you're unemployed. Like regular car financing without a job, it can also be a little more complicated. Also, it's worth considering that not all lenders will accept this type of loan payment.

And if your benefit turns out to be too small or something is not right with your credit history, you can always enlist the help of a guarantor.

Can I get unemployed car finance with a guarantor?

There are cases when a client has applied for a loan and was approved. Right now, this client doesn't have a job. In such cases, we ask an employed partner or guarantor to join the loan - and then the joint loan will be approved.

Partner has a good job, but I don’t. Can we get car finance?

Car finance can be a tricky subject when one partner is employed and the other is not. In general, lenders will look more favourably on an application if both parties are employed. However, this does not mean that it is impossible to get car finance if only one partner is employed.

There are a few things that you can do to increase your chances of approval.

First, make sure that your partner has a good employment history and earns a decent income. Lenders will also look at your own employment history and income, so if you have been unemployed for a long period of time, it may be difficult to get approved.

Additionally, try to put down a larger down payment if possible. This will show the lender that you are serious about making the payments and are less likely to default on the loan. By following these tips, you may be able to get car finance even if only one partner is employed.

Is age a factor?

If you are over 21, you may be able to get car finance. However, if you are under the age of 21, you may have to get a guarantor. Generally, the unemployed are considered high-risk when it comes to getting car finance. This is because they don't have a regular income to make repayments. However, age can also affect the chances of getting car finance. If you're younger, you may be seen as more of a risk than someone who is older and has a more established income.

However, being older doesn't necessarily mean you'll get approved for car finance. Lenders will still consider your financial situation and credit history before deciding. Ultimately, the best way to improve your chances of getting car finance is to improve your financial situation and credit history. If you can do this, you'll be more likely to get approved regardless of your age.

What should you consider before getting a car financed with unemployment?

First of all, make sure that the loan's monthly payment and interest rate are within your means. That way, you can plan your budget with the car loan in mind. Use the APR when calculating - it includes the payment itself and all the interest rates.

If the offered rate is too high for you, try taking out a loan for a more extended period - then the payment will be lower. But keep in mind that the period of your loan and the number of payments will also increase.

Who should you avoid at any cost?

Unregulated lender

There are many lenders that the Financial Conduct Authority does not regulate. This means that they do not have to follow certain rules and regulations. These lenders may charge higher interest rates.

Loan sharks

Loan sharks are illegal lenders. They often charge high-interest rates. They may also use violence or threats to get their money.

Lenders advertising guaranteed car loans

Many lenders claim to offer “guaranteed” car loans. However, this is not always the case. Lenders may require you to have a good credit score or a down payment.

Payday lenders

Payday lenders may be able to offer you a car loan. However, they often charge high-interest rates.

Logbook loans

Logbook loans are a type of loan where you use your car as collateral. This means that if you default on the loan, the lender can take your car.

Tips to get car finance if you are unemployed

  1. Register for the electoral roll since this is proof of your address and allows your identity to be verified by lenders.
  2. You should check your credit file for errors before applying to be sure that everything is accurate. If you notice anything inaccurate on the report, notify a reference agency and they will have time enough to fix it if necessary!
  3. One of the best ways to improve your credit score is by settling any outstanding loans -It will reflect well on how responsible you are and help establish a good reputation, making it easier for others in need who might come across this information later down the line
  4. It is important to make one formal loan application rather than multiple. This will stop lenders from thinking you're taking out several loans and it can save time as well because they won't need to go through all of their processes with someone who only wants one thing from them.
  5. The joint application is an excellent way of building your relationship with someone else. You can both benefit from the opportunity and take responsibility if things go wrong. Additionally, they should be aware that your bad credit history could have an impact on their own credit rating and their future borrowing power.

Contact our professional brokers

If you are unemployed and looking for car finance, our professional brokers can help. We have a team of experts who can help you find the best deals and get the best interest rates. We can also help you to understand the process and make sure that you are getting the best deal possible.

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