Back to the Blog

Can part-time workers get car finance?


Updated
13 Sep 2019

Man polishing the front of his car

Securing car finance while working part-time can be tricky. Lenders may have doubts over your ability to meet payments due to having less income and less (perceived) stability than when employed full-time. It may be difficult, but it is certainly not impossible. Part-time workers need to make themselves as attractive to lenders as possible. Here’s our guide to improving your chances of getting a car loan as a part-time worker.

Your employment situation

The largest factor when taking out any loan is your ability to meet repayments, and the biggest factor in your ability to meet repayments is your income. Part-time work, almost by definition, comes with a lower salary than full-time employment. As such, lenders will understandably be wary when they find out that you work part-time. However, as long as you meet the necessary threshold in order to meet repayments, this shouldn’t be an issue.

That being said, it’s important to bolster your employment situation as much as possible to increase your likelihood of being accepted for car finance. One way to do this is to stick with one employer for a considerable amount of time (i.e. more than just a few months). This suggests that your employment is more stable and long-term, rather than just one of many temporary stints of part-time work. When lenders request your recent employment history, this will make for a stronger application.

Be realistic about your loan

Now you’ve made yourself a more attractive borrower, the nature of the loan for which you are applying can affect the likelihood of your being accepted for car finance. Firstly, consider settling for a more modest vehicle; a used car rather than a new one, or a slightly older model than you were initially considering. This will reduce the amount of money you’ll need to borrow and will mean lenders have to risk less credit when lending to you, thus improving your chances of being accepted. It also shows that you are responsible and not frivolous, two qualities that lenders regard highly.

Secondly, you may consider offering a large deposit upfront. This will show that you are serious about the loan you are taking out and will reduce your monthly repayments, which is good for you in the long run. More affordable monthly payments are easier to make, which is good for the lender too.

Thirdly, to strengthen your application and provide further assurance to lenders, consider getting a guarantor. A guarantor is a third party (generally someone you know) who agrees to pay back your loan should you become unable to. It ensures the lender that they will get their money back even if the borrower defaults on payments. This should quell most doubts lenders will have regarding your part-time employment status. Read more about guarantors here.

Credit history

Your credit history (including your credit score) is an important factor when securing a loan. It gives lenders an insight into your track record of money management and how you’ve dealt with credit in the past. The better your track record, the better your credit score, and the higher chance you have of being accepted for a loan. If, however, your credit score is poor, then you may struggle to secure a loan because it implies a history of poor money management.

There are a number of things you can do to improve your credit score, such as join the electoral roll and maintain residency at one address for a significant amount of time. These things suggest stability in your life, and stability is what lenders look for when assessing credit applications. Having an excellent credit rating can tip the scales in your favour and offset any potential doubts regarding your part-time employment. Check out our blog post for a deeper breakdown of credit scores and how to improve them.

Here at Car Finance Plus, we specialise in helping those who aren’t in the best position to secure car finance. Whether they have a bad credit score, are retired, or work part-time, our panel of expert lenders will give you the best possible chance of getting a car loan. Simply fill in our online application form and one of our team will be in touch to help you get started. Take a look at our How It Works page for a rundown of our process and what is required from you.

     
Start your application