There are a number of people in Canada that are working in a short term or seasonal basis. Most of them think that they are not qualified to apply for a vehicle financing because they are seasonal workers however, this is not true at all. If you are one of these doubters, then maybe you should change your mind set. Tons of car dealers and auto loan lenders still accommodate individuals that have seasonal jobs.
Take New Car Canada, we provide guaranteed approvals to anyone regardless of any issues. We also provide bad credit and no credit auto loans to anyone in need of it. You just have to look for the right lender and follow these few tips on how to secure an auto loan regardless of whether you have a seasonal job or a more stable one.
1.) Know the Right Time to Apply
As a seasonal worker, timing is crucial. Even though you are a seasonal worker with poor credit or no credit at all, there are still companies that specialize in providing loans for people who are in this situation. Generally, lenders will ask the longevity of your employment in your job and they mostly require at least 3 months of payslip. Therefore, the best time to apply for auto financing is when you have reached at least 3 months in your job. Furthermore, bad auto loan lenders like New Car Canada, would only require a minimum monthly income of $1,800 in order for a person to get approved. So if you time your application just right, then your chances of getting approved for a loan will certainly increase.
2.) Look for A Cosigner
All lenders see a potential borrower as a risk. That is why credit bureaus like Equifax and TransUnion give out credit scores in order for lenders to have a numerical estimate of a borrower’s creditworthiness. If you have a low credit score, looking for a cosigner will tip the scales in your favor. Despite the nature of your work (seasonal job) including your credit rank, having a cosigner will certainly help in getting that approval that you want. This is because having a cosigner means lesser risk in the perspective of a lender.
To add, a cosigner is a person that is willing to pay the remainder of a primary borrower’s debt in case of a default. That is why, it would really help if you choose a cosigner which has a stable job, income and a good credit score. If you are fortunate enough to find a cosigner with these qualities, there is a chance that you might get a lower interest rate on your auto loan. That’s how advantageous having a cosigner is.
3.) How Consistent Your Seasonal Job Is
Another factor that they will look into is the consistency of your seasonal work. What this means is that if you are constantly being hired for a short term contract, then it won’t stop you from getting a car loan. To add, if your annual salary sums up to a considerable amount, you will get an approval for auto financing. There are many lenders in Canada that don’t really focus their criteria on the stability of your job or your credit score, what matters to them is that they will be assured that you have the financial means of repaying your debt. That is why they have a minimum income requirement.
4.)Type of Car You Want to be Financed
An approval for a loan also depends on the type of car that you want a prospective lender to finance. If you choose a type of car that is a bit too much (i.e. sports car) and given your current situation, it is very unlikely that you will get approved for that loan. On the other hand, if you choose a reasonably priced sedan, then you will have a greater chance of getting an approval from your lender. So choose wisely, it is highly recommended that you don’t get carried away when choosing your car. Be rational and think of your “needs” first before your “wants”.
5.) Consider Making a Down Payment
As mentioned in tip no. 4, the amount to be financed has a big impact on your case as a car loan applicant with a seasonal job. Although tons of car dealers don’t require a down payment, if you have extra cash to spare, then it is generally advisable to make a down payment especially if you have bad credit. Why? Because placing a down payment will lower the principal amount or total amount that you want to borrow from a lender. This in turn will result to lower interest payments since a smaller principal amount would equal to a lower interest payment (given a constant interest rate). With that said, a lender will also see you as a borrower that is fully committed and financially capable of paying off your loan consequently leading to an approved auto loan. Placing a down payment is a big game changer.
As you can see, being a seasonal worker with a bad credit score does not mean that it is the end of the line for you. There are tons of alternatives for you to consider so that you can get behind the wheel of a car through auto financing. Start rebuilding your credit today by filling out our short and simple online application form. We help anyone with their transportation needs.
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