Can I get car finance with a new job?

In today's fast-paced world, job changes and career advancements are increasingly common. But, what if you’ve just started a new job and you need to get a car?

Can you get car finance with a new job or do you need to meet certain criteria before applying for a car loan? Will being in a brand new job hurt your chances of getting approved?

In this article, we'll answer some of the most common questions about car finance for those who have recently started a new job, including apprentices and people with temporary employment.

Can I get car finance after starting a new job?

The short answer is yes you could. You can still get car finance even if you've recently started a new job. However, lenders typically look at various other factors to help them determine your eligibility and how likely you are to be able to repay the credit. This includes things like your employment history and stability, your income amount and your credit history.

How long do you have to work before getting car finance?

While there's no strict requirement for the length of time you need to work before applying for car finance, most lenders prefer borrowers who have a stable employment history. Generally, having at least three to six months of employment (in the same role) could increase your chances of approval. However, this can vary depending on the lender's policies and your individual circumstances.

So, if you can, it’s a good idea to try waiting at least three months after you start your new job before you apply for car finance.

Can I get a car loan with a new job before completing three months?

Yes, it is possible to get a car loan with a new job before completing three months of employment, but it may be more challenging. Many lenders prefer borrowers with a stable employment history of at least three to six months as it demonstrates financial stability and the ability to repay the loan.
However, some lenders may be more flexible depending on your individual circumstances, such as your credit score, income stability, and overall financial situation. It's important to be prepared to provide additional documentation or information to support your car finance application. 

Additionally, consider factors such as your budget, down payment (deposit), and interest rates to ensure you can comfortably afford the loan repayments.

How long do you need to be in the UK to get car finance?

Lenders may prefer applicants who have been living in the UK for at least three years, with three years of address history, although this requirement can vary. Having a permanent address and stable income sources may help increase your chances of approval for a car finance application, but there may be specialist lenders who would be willing to be flexible depending on your circumstances.

Do you need income for car finance?

Yes, having some form of income is crucial when applying for car finance. Lenders need assurance that you can afford the monthly repayments, and that your financial circumstances aren’t likely to change in the near future. Your income, along with other financial commitments you may have, will be assessed by the lender to determine your ability to afford all of the repayments.

However, ‘income’ doesn’t always have to be a traditional job. It could be a freelance or temporary position, or something like a pension or benefits.

Can you get car finance if you are unemployed?

Generally, being unemployed can make it challenging to secure car finance. However, some lenders may consider other sources of income, such as pensions, benefits, or a guarantor's income, to assess your affordability. There are lenders out there who could help source finance for people with other income sources besides an employment income, so discussing your options with them could help you get car finance if you’re unemployed.

Can you get car finance as an apprentice?

Yes, apprentices could qualify for car finance, it depends on your individual circumstances. Lenders may consider your apprenticeship income and prospects for future earnings when assessing your application. Providing proof of your apprenticeship contract and income stability may strengthen your application. 

Bear in mind that you will need to be at least 18 years old to get car finance, so if you are an apprentice under 18 you will not be able to get a loan just yet.

How long do you need to be employed to get a loan?

While there's no fixed duration, having a stable employment history, sometimes more than three months employed, may enhance your chances of loan approval. Lenders may accept borrowers if they can demonstrate financial stability and consistent income.

How to get your first loan for a car

If you're getting your first car loan, it's a good idea to start by researching lenders, comparing interest rates and loan terms, and checking your credit score before you apply. Additionally, waiting until you have a stable income, saving for a deposit, and considering a guarantor may improve your chances of approval. A guarantor is somebody (like a family member or friend) who promises to pay back the loan on your behalf if you can’t make the repayments for any reason. 

How to get a car loan without a job

Getting a car loan without a traditional job can be challenging but not necessarily impossible. Search for lenders that specialise in financing for people with alternative income sources, such as freelancers, entrepreneurs, retirees or people on benefits. You will then need to provide evidence of a consistent income from a valid source, and show that you can afford the repayments.

Can I get a car loan with a temporary job?

Yes, individuals with temporary employment could still qualify for car finance. Lenders may assess your income stability, job prospects, and ability to repay the loan. Providing documentation of your temporary employment contract and any additional sources of income could support your application.

It’s important to ensure that the monthly repayments fit within your budget. To get a good idea of what your loan would look like, use our quick and easy car finance calculator.