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Car Loans for Casual Workers
May 19, 2020●
7 minute read●
Why is it hard for casual workers to get car loans?
It’s common for people of all ages in Australia to be on casual employment. You could be a parent raising a child while working, a university or TAFE student, or just a person working in an industry with labour demands. Whatever the case, car loans for casual workers can be difficult to come by.
Casual employment can make it harder to get approved for all types of loans, not just car loans. The main reason that it’s harder for casual workers to get approved for car loans is that lenders may view them as riskier to lend to. Basically, this means they have a higher chance of not making repayments and defaulting on their loan.
How do I know if I’m a casual employee?
In short, you may be considered a casual worker if you:
- Don’t have a permanent contract with your employer
- Don’t get paid for sick or annual leave
- Usually get a roster every week with different shifts and work irregular hours
- Can have your employment terminated at any time
- Receive a higher hourly rate to compensate for no benefits
You can find out more about casual employment directly from the government’s Fair Work website.
Jacaranda’s car loans for casual workers
At Jacaranda Finance, we understand that every situation is different. As a result, we can provide car loans for casual workers valued up to $35,000. Our car loans can be used to purchase a new or used car as well as refinance an existing car loan. Best of all, it’s free to apply! So, you could get an outcome without having to pay a cent.
To be eligible, you just need to meet the following criteria:
- Be 18 years or older;
- Have a driver’s license;
- Have a mobile number and email address;
- Receive a regular income for the last 3 months into a personal bank account.
What should I consider when applying for a car loan as a casual worker?
When it comes to car loans for casual workers, there are a few things you should weigh up before applying. Firstly, you should consider how stable your employment is. For example, have you only been working for that establishment for a couple of weeks or a month? If so, then you’d most likely still be on probation, meaning you may not be considered to have a stable job just yet.
Additionally, you also want to consider whether the specific type of loan you are applying for is right for your current and potential circumstances and needs. You have a huge selection of different car financing options available as well as terms. Before applying for any type of finance, make sure you compare your different options to get a rough idea of what might be best for your financial situation.
Can I afford a car loan as a casual worker?
Car loans for casual workers can be a helpful financial boost when you need to get yourself a new set of wheels, and fast. Whether or not you’ll be able to afford a car loan will ultimately come down to your personal circumstances. Regardless of what your employment contract is, you should always consider whether the repayments on a loan are affordable based on your income.
When you apply with Jacaranda, we will carefully consider whether you could afford to meet the repayments on our loans. This is part of our responsible lending practices. However, all credit comes with risk. If you’re ever unsure, you may want to consider speaking with a qualified financial advisor before making a decision.
Car loans for casual workers: Frequently asked questions
Here are some of the frequently asked questions casual workers ask when it comes to applying for our car loans:
Can I get a car loan with a casual job?
When you’re on casual employment, you are riskier to lend to due to the uncertainty of your job stability. Taking out a loan means being confident in making all repayments in full until the loan is completely paid off. However, don’t worry, you could still get approved. At Jacaranda Finance we consider a range of factors when assessing your application. If you have a good credit rating with a clean record of borrowing or if you have an existing bank account that shows you have a stable income from your casual employment, then you may very well get approved for a loan.
What if I have multiple casual jobs?
When taking out a car loan as a casual worker, having more than one job isn’t necessarily a negative thing. It may demonstrate you have a diversified income and increased job security. Ultimately, Jacaranda considers these factors on a case by case basis. No matter your situation, we will work hard to find you a suitable car loan option.
What if all of a sudden I lose my casual job?
We understand that sometimes life throws you a curveball. If that happens, the first thing you shouldn’t do is panic. Instead, reach out to our team to talk about how we can help you find a suitable solution. We can provide help to those suffering from financial hardship by offering alternative repayments plans and more. Charges may apply for failed repayments, however, so the sooner you contact us – the better!
5 Ways to improve your chances of getting a car loan as a casual worker
Although being on a casual contract doesn’t completely ruin your chances of getting approved for a car loan, there are a few things you could do to improve the odds. At Jacaranda Finance, we can’t guarantee approval on any of our loans. That said, here are some general tips you could try to bolster your chances of getting car loans for cash workers:
1. Check all minimum eligibility criteria
Regardless of what contract you’re on, loans will always have minimum income eligibility. Check with your employer and lender to see if you qualify. You may need to provide bank statements and payslips to prove you’ve been receiving a stable income for a certain period of time.
2. Don’t apply for a loan until you’ve had a stable income for at least a couple of months
Before applying for a car loan or any other form of finance, check with your desired lender to see if they have any minimum income requirements or how long you have to have a stable income for. This can range anywhere from months to a year, depending on your lender.
3. Always apply for less than what you can really afford
It’s sometimes best to settle for a cheaper car so that you can comfortably make your repayments without having a tight budget.
4. Obtain a letter from your employer
This letter can help prove to your lender that you have a stable income. The better your financial stability is, the better your chances are of getting a loan as a casual worker.
5. Illustrate your saving and budgeting abilities
If you have a deposit and an efficient saving history, lenders will see you as a reliable and worthy borrower.
How else could Jacaranda help me?
In addition to car loans, Jacaranda Finance also provides personal loans to cover a wide range of needs. That includes everything from home renovations to medical bills to holiday expenses. If you’ve been looking at car loans for casual workers but actually just need help financing some car related expenses, then a personal loan may be better suited to your needs.
Our personal loans can be used to cover the cost of car registration, car services, car repairs, and more! Here’s a quick breakdown of what we offer:
|Small Personal Loans
||$300 – $2,000
|Medium Personal Loans
||$2,001 – $4,600
|Large Personal Loans
||$5,000 – $10,000
Apply for a personal loan today.
Ready to apply?
We know car loans for casual workers can be difficult to come by, especially with traditional lenders. Fortunately, Jacaranda prides itself on giving all Aussies a fair go at getting the finance they need – and fast! One of the perks of our online application is that you can apply at any time – day or night. So, if you’ve been on the hunt for a car loan, don’t wait! We could help you access the finance you need in no time.
Still have questions? The team at Jacaranda is always here to help in whatever way we can. Check out our FAQ page for more information or contact us directly to learn more.
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