Can I Get a Car Loan With a New Job?

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Contributing Writer

Bethany Hickey is a graduate from the University of Michigan-Flint, with a bachelor’s in English-Writing. She is a content writer for Auto Credit Express, CarsDirect, and many other automotive blogs, as well as the Poetry Editor for UM-Flint’s writing magazine.


, Contributing Writer - May 18, 2021

If you’re applying for an auto loan, not only is your income important to the lender, but your work history is too! If you have a new job and are looking for an auto loan, your work history as a whole may have a say in your eligibility.

Job History Matters to Auto Lenders

Lenders aren’t just concerned about your current monthly income – they also care about you continuing to bring in that income. Many bad credit auto lenders require that you’ve been at the same job for around six months to one year, and have a work history of at least three years without large gaps between employment.

If you got a new job in the last six months, your lender may ask some questions surrounding your job change to get a better understanding of you as a borrower. Many borrowers can expect the standard “why did you change jobs” question, but some borrowers may need to prepare a few more documents and answers, depending on your employment.

If you can answer yes to any of the following questions, you may need to provide a lender with additional documentation to prove your consistent work history:

  • Do you switch jobs frequently?
  • Are you a contract worker that frequently changes employers?
  • Do you consistently work in the same field with a similar pay grade?
  • Is your new job in the same line of work as your previous employment?

To a lender, applying for a car loan with a new job may be a risk, but it also depends on the circumstances surrounding your job change. And it may not knock you out of the running. Auto lenders can be understanding of a job change in certain situations: higher pay, better working conditions, or moving to another city or state.

However, if you’re a frequent job-hopper that changes fields often without upward movement, it can tell a different story and may decrease your approval odds. And, if this new job is your first-ever job, an auto lender may require that you’ve been there for at least one year before they can consider you for approval.

Can I Get an Auto Loan With an Offer Letter?

If your credit score isn’t great and you apply for a car loan with a subprime lender, odds are, they can’t accept a job offer letter as proof of employment.

Lenders typically require computer-generated check stubs with year-to-date income, because they use your gross monthly income as a basis for their requirements. If you're a 1099 earner who doesn't get check stubs, a subprime lender may require two to three years of tax returns to prove your monthly gross income.

If you only have an offer letter for proof of income and employment, it also likely means you haven’t started working the new job yet. Depending on your circumstances, you may need to wait at least six months before a lender considers you for vehicle financing.

What Are the Income Requirements?

Auto lender requirements vary. However, subprime lenders that assist borrowers with credit challenges have similar income qualifications. Expect to need around $1,500 to $2,500 of gross monthly income, from a single source.

Generally, auto lenders only accept one source of income to meet the initial income requirements. If you have additional income, such as Social Security or an additional part-time job, it’s possible that those sources can be used to meet or lower your debt to income ratio.

Let Us Guide You to a Dealership!

Not every dealership is signed up with lenders that can assist borrowers with unique credit or job circumstances. Special finance dealerships are, though, and at CarsDirect we’ve created a nationwide network of these dealers.

Fill out our free auto loan request form, and we’ll get right to work looking for a local dealership near you that’s able to assist borrowers with credit challenges. There’s never a fee or obligation to buy to get matched to a dealer, so get started today!

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, Contributing Writer

Bethany Hickey is a graduate from the University of Michigan-Flint, with a bachelor’s in English-Writing. She is a content writer for Auto Credit Express, CarsDirect, and many other automotive blogs, as well as the Poetry Editor for UM-Flint’s writing magazine.


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