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Financing a Car Loan as a Seasonal Worker in Milton

Financing a Car Loan as a Seasonal Worker in Milton

There are tens of thousands of seasonally employed people across Canada. All of them need to drive to work or access a car for one reason or another. So how can you get an auto loan if you work seasonally? We asked our Milton auto loans team to outline the who, what and how of getting a car loan as a seasonal worker.

 

Getting a Car Loan as a Seasonal Worker

 

The good news is that the majority of lenders don’t care what hours you work, where or how. All they are concerned with is your ability to repay the loan.

 

If you’re fortunate enough to earn well when you work and have a regular, reliable seasonal job, you’ll have no problem qualifying for the loan.

 

If you’re a lower paid seasonal worker, you may have more trouble. Much depends on how much you earn and how regularly.

 

For example, someone who has earned a modest amount regularly for 5 years is a good bet for an auto loan. Someone who has earn a large amount for just a few months is not such a good bet as they have yet to prove a regular income.

 

Check your credit score

 

As with any loan application, a lending decision will rely heavily on your credit score. Check your score and improve it as much as you can. The higher the score, the lower the rate so it’s a good idea to keep your score high wherever possible.

 

If you have time, improve your score as much as you can. If you don’t have time, improve it anyway so it’s ready for next time.

 

Prove your income

 

You will need to provide documentary evidence for all income you want taken into account for your Milton auto loan.

 

That means salary statements or pay stubs for as long as you can. If you have worked seasonally for decades, a couple of years’ worth of pay stubs should be enough but you cannot have too much proof!

 

The lender will want you to prove you can afford the loan without putting yourself into a difficult situation.

 

If you can do that, you’ll get the loan.

 

Save for a down payment

 

A down payment is a benefit to any loan, especially those regarding ‘non-standard’ employment.

 

The more you can put down, the more reassured the lender will be and the lower the amount you’ll have to borrow. Both will help your application in a big way.

 

Use a cosigner

 

If your application is borderline, you may benefit from using a cosigner to guarantee the loan. If you know someone who trusts you enough to come in with you on the loan, their credit score will be added to your own and the lender will use their situation because yours to make the decision.

 

As long as the cosigner has a good credit score and could theoretically afford the loan if you defaulted, you should get the loan.

 

If you need help or advice on anything to do with auto loans in Milton, contact Car Nation Canada today, we can help!

 

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