It's not uncommon to see people look towards car financing with a new job, either because they suddenly find themselves in need of more dependable transportation to make it to their new place of employment or because their new job affords them more flexibility on what kind of used cars for sale they can afford.
While both can be great problems to have, what sort of problems can you run into when looking for an auto loan with a brand new job? When is the best time to look for a vehicle financing after starting work and what sort of used car financing options do you have?
New Job So How Long to Wait to Finance?
Regular car financing companies tend to be a nervous bunch and one thing they want to be reassured on his how you intend to pay back this money they loaned you. Because of this, in a way your past job can be as important as your new job. If you have two years or more with no significant gaps in employment most lenders will feel comfortable with your transition.
However what if you were laid off for a while and this is your first time back in the workforce? Then the lender will get more nervous, likely they will require at least 6 months of steady employment at your new job before they let you visit the local used car lots with a loan.
Applying for an Auto Loan ASAP
While a regular finance company is your best option, it is not your only option. There are also car lot financing dealerships that will lend even without a long job history. Such BHPH or on the lot lenders offer quick turn around loans but at much higher rates and vehicle GPS tracking to ensure that their property does not wander off. Such an arrangement is not always ideal but it can be bare-able with the lack of any other option.