A car loan for a temporary employment contract is not excluded. There are even various options that allow vehicle loans despite a temporary employment contract. The article provides you with more information on credit options and restrictions.
Car Loan for a Fixed-Term Contract – Labor Market
Usually, all loan offers are linked to permanent employment outside of the trial period. The desire for a car loan with a fixed-term employment contract contradicts this. Nevertheless, fewer and fewer workers can meet the demand for a permanent employment contract. The transition from the trial period to permanent employment is not the norm. Around half of all new employment contracts are already concluded on a temporary basis. The trend is still increasing.
After each time limit there is the possibility of an extension. In this way, employers can practically say goodbye to their social responsibility. If things get worse, the temporary employment contracts will not be extended. Employers who do not act in this way face massive competitive disadvantages. You cannot “shrink yourself” free of charge.
About 2.7 million people are affected. The leaders in terms of temporary contracts are not particularly greedy entrepreneurs. The state is almost “notorious” for its chain contracts in the public sector. A current example flickered on the screens in October 2013. The employment agency had temporarily employed a staff member for a total of 20 years in a row. Divided into 18 individual temporary contracts. With 20 years in the chain contract, there can be no longer any question of a short-term additional need. Unfortunately it is legal anyway.
Getting out of the credit crunch – car dealer credit
A car loan with a limited employment contract can be possible through the car dealer. The credit offers of the car banks are primarily aimed at sales promotion. Access to a loan option, despite a fixed-term contract, may be possible as part of the sales promotion. However, the credit bank needs a big bait to bite. It is the down payment on the vehicle that can provide access to a vehicle loan for a fixed-term contract.
If you pay around half of the vehicle instead of the usual 10 percent, you will usually get your loan request financed. The security that the real value of a vehicle offers can easily be achieved by the bank. If the employment contract is not extended, the repayment comes to a halt, then the residual value of the vehicle exceeds the outstanding claim. When selling through the dealer network, both the lender and the borrower are off the hook.
An alternative to this procedure could be the purchase of a vehicle that is paid within the time limit. If you do not set your vehicle purchase requirements too high, you have a fair credit chance in this way. A surety can also be a safe option that opens up a loan for buying a car despite a fixed-term employment contract. A solvent guarantor, especially with a loan with a real value in the background, can enable large amounts of credit – despite the time limit.
With a guarantor, not only the car dealers’ loan offers come into question. In this case, the lender for the car loan with a temporary employment contract can be chosen almost freely.
Car loan from private investors
One of the most important loan offers for people with a fixed-term contract does not come from the “ordinary” credit system. The financing of the car purchase can equally be done by private donors. Portals such as best lenders or trucredit have long ceased to exist in shadow. Today millions of workers are in a financial crunch despite full employment. The financial market crisis and the tightening of guidelines for commercial lending have established loans from the private sector.
The real value of the vehicle can also increase the credit prospects for car loans with a temporary employment contract. This requires an expert opinion from the vehicle. The real mortgage lending value can be determined on the basis of the expert opinion. Not only commercial lenders, but also private investors are concerned about the security of their investments. With a car as security, the publications of the portal operators should be believed that 80 percent of all applicants get their credit.
Should this attempt to credit also fail, which is hardly to be expected given such a high approval rate, there is still another alternative. As a new vehicle, the car is initially leased at the highest possible rate. A leasing contract is easier to get than an installment loan. At the end of the contract, the car can be purchased by the lessee at the agreed value. The loan amount required is very low due to the high leasing rates. The car loan in the case of a temporary employment contract can almost always be approved due to the high real real value and small credit requirements.