Can casual and part time employees get a car loan? In many cases, yes.

Rapid Finance on 23 January 2017

Getting a car loan without full time employment.

Australian workers are increasingly turning to casual and part time employment. Unfortunately, many lenders still choose to offer loans largely only to workers with regular or full time employment.

These lenders consider casual and some part time workers, that is workers without a fixed income, to be an unacceptable risk. Therefore they will regularly deny their car loan applications.

The good news is that there are options available, and depending on your circumstances, you may still be able to secure car finance. You just have to think beyond the big four banks.

Just want to find a suitable car loan? Check out our car loans page.

Speak with a car finance broker

call finance brokerA car finance broker is a specialist in car loans. Every day, they work with Australians in a range of situations. Their job is to match people with finance that suits their circumstances.

Unlike a bank, your finance broker compares a range of loan products from a variety of lenders. Many of which you may not have been previously aware.

They can help you to prepare your case for finance, by focusing on your financial strengths such as your rental history, job history, and income. They can even negotiate with lenders on your behalf.

If you've been finding it difficult to secure finance because of your status as a casual or part time worker, a chat with a car finance broker could be the best next step to take.

For more information specific to your situation, speak with a broker about car loans for casual and part time workers today.

Try a personal loan

Personal loans are a type of unsecured finance. They can be used to obtain funds for a variety of purposes, including for cars.

They are typically used to borrow smaller amounts. This makes them a good option for those who want to finance a lower-cost used vehicle.

As stated above, loans of this type are typically unsecured. Therefore, interest rates are often higher when compared to traditional secured car loans. However, they are usually lower than those of bad credit car loans.

Depending on your situation, a personal loan may be a suitable solution for getting a car loan without full time employment.

Consider a used vehicle

By choosing a used vehicle of lower value, you may be able to apply for a smaller loan. And, depending on your situation, a smaller loan may be more obtainable.

Simply put, the larger the loan amount, the more risk for the lender. So a smaller loan, used to purchase a used car, may be available when other larger loans are not.

Searching for a used vehicle? Check out our wholesale cars network.

Find a loan guarantor

sister guarantorA loan guarantor, also known as a loan co-signer, can be anyone. A family member. A close friend. Or someone who owes you a - big - favour.

Your guarantor is someone who co-signs your car loan. This effectively makes them responsible for the loan. If you default, then your guarantor is liable for the amount borrowed.

For this reason, caution is advised when considering this option. Especially, when it comes to car loans for casual and part time workers.

Defaulting on a loan when a friend or loved one has co-signed the agreement cause significant distress. We advise pursuing a co-signed agreement only with appropriate precautions in place.

Save a larger deposit

Lenders like to minimise their risk. One way they can do this, is by accepting a larger deposit. So in the event that the borrower defaults on the loan they have fewer costs to recover.

This won't be an option if you require a vehicle straight away. Although, if you can wait, and save more toward your deposit, it could mean the difference between a denied application, and getting a car loan without full time employment.

Another way to make your deposit go further is to choose a vehicle of lower value. By choosing a cheaper car, you may be able to stretch your 10% deposit into 15 or 20%.

"You may still be able to secure car finance. You just have to think beyond the big four banks."

About the author

At Rapid Finance, we've found numerous car loans for casual and part time workers in the past. And we could help you too. We make securing suitable finance fast and easy.

Remember, in many circumstances, getting a car loan without full time employment is possible. For information specific to your situation, speak with one of our friendly finance team today.

Find out more on our car loans page today or call 1300 467 274