Car loan during the probationary period – where do you get it
During a probationary period with a new employer, it is relatively difficult for employees to obtain a loan of any kind. This is also the case for car loans, which are often cheaper in their terms due to the collateral, but still have a certain amount of credit Require security. On the other hand, it is not impossible to get a car loan during the probationary period. Especially if the employee is professionally dependent on a new car, all alternatives should be considered.
So you get a car loan during the probationary period
There are several contact points for car loans. Almost every bank and every bank today offers a loan specifically tailored to vehicle financing. Car loans are often much cheaper compared to normal installment loans, which is due to their collateral. Almost all financing companies request the registration certificate Part II (formerly a motor vehicle letter), which is then stored until the car is fully paid off. The credit institution thus remains the owner, while the vehicle only passes into the possession of the borrower. Actually good conditions, one might think, if a car loan is to be applied for in the probationary period.
But here, too, collateral is demanded because retention of title alone is not enough for most companies. Anyone who needs a car loan as early as the probationary period can not fulfill a prerequisite which is almost always demanded by banks: the secured regular income. Although there is income in this case, it is still uncertain whether this condition will last. However, this alone should not fail, because a number of other factors also play a role.
First of all, it has to be determined what other collateral, as a potential borrower, is otherwise available in order to obtain a loan during the probationary period. Apart from the probationary period, the professional status or training can prove to be an influential factor here. Anyone working in a demonstrably booming industry, in which skilled workers are urgently sought, has significantly better chances of getting a car loan. After all, banks too value long-term customer loyalty if good to very good credit ratings are foreseeable.
Another way to obtain the coveted car loan during the probationary period is the amount of the advance payment made. The logic behind it is easy to understand: the less the bank is to finance, the lower the associated risk. Here it is advisable to give the old vehicle in payment in order to be able to afford a higher down payment. This can not only lead to a positive credit decision, but also to significantly better terms in the interest on the loan.
If the options already mentioned are not within the scope of what is feasible, there are still opportunities through the involvement of a guarantor or co-applicant. The latter is taken from the beginning in the duty when it comes to the regular performance of the debt service. The co-applicant is thus liable directly from the beginning. In most cases, this is a close relative or spouse of the applicant. The guarantor, on the other hand, does not have to pay installments until the applicant himself can not or does not want to pay them. For both, however, the credit rating is a key criterion. Both guarantor and co-applicants need a secure employment relationship, from which a regular income is generated. In addition, no negative credit bureau entry should exist. If these requirements are met, a car loan can be applied for during the probationary period without any problems.
Also should not be neglected to examine the financing directly through the dealer or via the car bank of the manufacturer. For new cars in particular, these often offer much more favorable conditions, which are granted with not too strict restrictions on collateral.