Car financing questions

kryptonmight

I'm thinking of changing my car before next summer and I've noticed some finance programmes like Nissan Go which seem an appealing way to own a new car.

When I bought my current car I just got a credit union loan and seeing the car was 2nd hand, it wasn't a huge amount. I'm not sure that route is practical for me now for various reasons so I'm thinking about one of those finance type deals.

Typically, do they give those out to people who don't have permanent jobs? I just started a new job that's due to run for 2 years. It might get extended, but it might not also.

What type of things do dealers consider before accepting or rejecting you for finance? I've been fortunate in that I've always got work when I needed it but I'm just wondering if spells of unemployment count against you?

SJT1

These days the banks normally look for you to be in Full-time permanent employment, some operate slightly differently to others. It will cost you nothing to put an application through a dealer to test the water but I think unlikely with a 2 year contract, the other thing they will look for is your current credit rating and have you borrowed and repayed successfully in the past. As you have a history with the credit union I wouldn't rule them out and also you can pay extra to clear their loans off early without any hassle, you won't be able to do that with a loan through a dealer as these are normally fixed rate loans.

wonski

Last time I enquired I was on series of fixed-term contracts, and was told to hold on until I am offered permanent position. This was with a bank, and they said they can't offer loan for longer than your contract period. As someone mentioned you can test the water by applying, but slim chances with fixed term employment...

kryptonmight

Funnily enough my bank branch up home phoned me a couple of weeks ago asking if they could help with anything and if I was interested in a loan or mortgage to let them know. I told the girl about my job situation and that i was thinking of changing the car and may need a loan and i think she said the amount is based off my salary. She said it would be unlikely I'd get a mortgage but a car loan wouldn't be too much of a problem.

i might pop in to a local dealer tomorrow to find out about financing and at least see if i have any options.

Peanut2011

Just read the fine print when it comes to car financing. Sometimes you have the small print that states a certain amount payment upfront and a balloon final payment and so on. It is quite likely it is under a lease rather then loan and so on...

wonski

kryptonmight wrote: »

She said it would be unlikely I'd get a mortgage but a car loan wouldn't be too much of a problem.

i might pop in to a local dealer tomorrow to find out about financing and at least see if i have any options.

Depends on the bank I guess, and your history with them. One of the very first questions on the form will be about your job situation, and as far as i know they aren't so happy when it isn't full time and permanent ticked.
Getting a car on finance, and a car loan from your own bank is a different story.
Also she used phrases like "unlikely" and "not too much problem" which isn't very convincing. My bank at least gave me requirements straight away, so I didn't have to waste my time applying for a loan I wouldn't be appproved for.
And finally 5-10k loan is probably possible, but for the full price of the car (minus the deposit) without permanent job might be difficult. I worked for the company where 90% of staff were on fixed contracts, and all (well, the ones I spoke too) had to wait with mortgages and car finances until they made us permanent.

bazz26

Just remember that if you do go with finance that the car is the property of the finance company/bank until the final payment is made.

dnme

bazz26 wrote: »

Just remember that if you do go with finance that the car is the property of the finance company/bank until the final payment is made.

Nope!

Bank will usually give give you a loan. In this case the car is yours.
Dealer will give you HP or PCP. In this case the car belongs to the financier until fully paid, then it transfers to you.