How You Can Get Car Financing If You Are a Seasonal Worker


Getting Car Financing as a Seasonal Worker

There are thousands of Canadian’s who work for short-term or seasonal employment. Many of these people believe that since they only work throughout part of the year, they’d be unable to obtain a car loan. While this is a common thought, it is entirely untrue, seasonal workers CAN get approved for car financing. We at Car Loans Canada work with seasonal workers on getting car financing every day, and we decided that since it’s such a common topic, we’d write a blog explaining how to do it. In this article, we’re going to give you 3 tips to get you approved for financing as a seasonal worker.

1. Apply at the Right Time

Timing is everything when it comes to getting a car loan as a seasonal worker. Most lenders are curious about how long you’ve been working and are typically looking for someone who’s been employed for at least 3 months. Therefore, it’s best to wait to apply for a car loan until you’ve worked the previous 3 months. The other factor most lenders want to see is an income of at least $2000 per month. So if you’ve worked the past 3 months with an income of at least $2000 per month, you’re in good standing to get approved for car financing. 

2. Find the Right Car and Make a Down Payment

The second tip we tell seasonal workers all the time is to find an affordable car. If your credit is bad and you’re a seasonal worker, you need to be ok with finding a vehicle that is practical, not fancy. If you’re able to find a reasonably priced car, truck or SUV there’s a good chance you’ll be able to get approved for financing. So it’s important that while you’re car shopping you don’t get carried away and find yourself looking at cars that are out of your price range. The second part of this is if you’re able to make a down payment, this can really help your odds of being approved. While down payments aren’t a requirement, they do help with your odds of being approved for better financing terms and lowering your monthly payments. In terms of how much money you put as a down payment is entirely dependent on what you can afford without leaving yourself financially vulnerable. If you can afford to make a $2000 or $3000 down payment, you should. 

3. Consider Getting a Co-Signer

The last thing you can do to significantly improve your odds of being approved for financing is finding a friend or family member to act as a co-signer for you. Regardless of your credit or financial situation, lenders see borrowers as a risk. Therefore, if you can find someone to sign off on your loan as a backup in case you fail to make your payments, the lender will feel much more comfortable in approving the loan. But getting a co-signer is something to be taken very seriously because if you fail to make your loan payments, your co-signer will have to make them. Don’t put a friend or family member in a position where they have to pay your bills, only get a co-signer if you’re 100% sure you can make the payments. 

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If you’re shopping for a car, it’s important to find the right lender for financing. At Car Loans Canada, we’ll connect you with the lender best suited for your needs. Just fill out our short application and get started today! 

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