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Can You Get a Car Loan Without a Job?

I cannot think of any circumstances under which you can get a car loan without some sort of income. Lenders want to see an ability to repay the loan – that’s the issue. Without an income stream, you would not be able to repay the funds they lend you. Really, the only way to secure a car loan without a job of some kind is to have a non-occupational income stream.  This would typically be from benefits of some kind:

Though, in some cases, things like investments and structured settlements may qualify.  No matter what, however, lenders will also prefer applicants who have some form of job, preferably as a salaried W2 employee. You will need to indicate your type of employment/income on your secure credit application, and you can discuss your financial situation with a finance specialist.

Financing a Car With No Job or Income = Bad Idea

Would it really make financial sense to take on a loan without an income? If you need a car to get to job interviews, you are still taking a risk that you will get hired in time to receive a check before the first payment is due. In many states, a vehicle can be repossessed after just a single missed payment. There are cases when lenders or dealers can send out a recovery team the very next day!  Obviously, repossession makes for a big blemish on your credit report, and it will keep you from being able to finance a car for at least a few months.

If you have money on hand for a down payment, is it enough to buy an older used car from a private seller? This may not be the most desirable option, but it may be the best one open to you until you have steady employment.

About the Author

The author has many years of experience in automotive finance and insurance. However, each consumer's situation is unique. It is best to contact a finance specialist for further assistance.
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