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Can I get a car loan with a new job?

Lenders look at a variety of things when you apply for a car loan, including your employment status and how long you’ve been in your job.

If you’ve just entered a new job, first of all congratulations - but second, you might be wondering how you can get a car loan as well. Luckily, there are a few employment-related items lenders look at to determine your suitability for a loan.

How long do you have to be in a new job to be eligible for a new car loan? 

For a loans.com.au car loan there are different requirements based on your type of employment. The three different categories are:

  • Permanent Full or Part Time: Six Months

  • Casual: 12 Months

  • Self Employed: 2 Years

What other factors will lenders look at when assessing you for a car loan? 

There are a few other factors other than just your employment tenure. For a car loan, it will generally be required you submit an offer of employment, any recent payslips, bank statements, and evidence of other income.

If you are a full time employee and have worked in your current job for less than six months, there could be an exemption granted if your previous employment was for the same role and industry, and you worked there for more than 12 months with no gaps in employment.

For the self-employed - i.e. if you’re a sole trader or small business - it’s generally the case you must have two years' worth of tax return statements or business activity statements, built up.

Car loans with a new job versus other personal loans

When shopping around for a loan for a new car, you are generally presented with two options - a secured car loan, or an unsecured personal loan. Each have their pros and cons.

Arguably the largest pro of a secured car loan is that it comes with a much lower interest rate, sometimes up to half the rate of an equivalent unsecured personal loan.

While you will need evidence of secure employment, the rate and the loan amount offered could be worth it.

An unsecured personal loan, however, typically comes with fewer restrictions. For example, you might only need up to three months' worth of employment to qualify. However, the trade-off here is that you’ll likely face a much steeper interest rate.

Talk to us about your next car loan

Even with a new job, you may still be eligible to apply for a loan today. Talk to one of our lending specialists about your circumstances or submit a car finance application online.

Frequently Asked Questions

How can you improve the chances of car loan approval?

  • Have stable employment: This includes being in a job for more than 12 months, with a stable work history.

  • Have few other debts: This includes other car loans, personal loans, and credit card debt.

  • Have good credit history: You can improve your credit history and score by paying down debts on time - even your phone and electricity bill - and paying off your credit card bill, as well as your home loan on time.

Find out more tips for getting approved for your first car loan.

Can I get a car loan with a temporary job?

Temporary or ‘temp’ jobs generally make it harder to get a car loan, especially a secured loan with a competitive interest rate. This includes contract work, too. You may be required to show additional supporting evidence of income and ability to pay off the loan.

Can I get a loan with a casual job? 

You can usually get a car loan with casual employment, provided you’ve been in the same job for 12 months or longer.

If you’ve just started a new job and need a new car, chat to us today and see how we can help you get a low rate car loan.

Apply now

About the article

As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.

Tags: car loan approval car loans pre-approval