A car loan without salary is of great interest to the self-employed and freelancers. Because this group of people does not have a regular income, which can be proven with a payroll. As a result, there are disadvantages especially in lending, even if the borrower has a good or very good credit rating.
When do banks give out a car loan without salary?
Regular income is one of the most important requirements that banks demand when lending. This ensures that the debt service, ie the regular payment of interest and principal, can be maintained throughout the loan’s term. As evidence of this income, payroll statements from an employer are used. The self-employed and freelancers therefore have a problem: they do not have such proof because they are practically their own employers. But if a car loan is needed without a salary statement, this puts the applicant in a somewhat unfavorable bargaining position.
The income situation does not even have to be bad. On the contrary, the self-employed borrower can even have a very high income and still have trouble getting a loan. Some banks require a detailed business evaluation (BWA) of the company to negotiate with. Income tax documents can also help to prove at least past sales. But this is just the past; a payroll statement also certifies the bank’s future income or its high probability.
If banks are not satisfied with the above-mentioned documentation, other collateral is needed to get the car loan without a salary allowance. Two very similar solutions are available for this: guarantor and co-applicants. Both individuals ensure that the loan is fully repaid over time, only at different times. The co-applicant is liable from the beginning on the sole responsibility and therefore finds himself during the entire term in the responsibility for punctual repayment of the car loan. The guarantor, on the other hand, does not intervene until the claimant is unable or unwilling to afford the debt service. Both, in turn, require a secure, regular income from dependent work as a prerequisite and may not normally have a negative credit bureau entry.
Car loan without salary at Astro Finance
Almost every major automaker now has a group-owned financial institution to finance vehicles. If one compares their offers with those of normal commercial banks, one quickly realizes that the former are often cheaper for the customer. Since it is obvious that the conditions are not quite so strictly handled. In fact, the chance of getting a car loan without a salary is much higher for auto banks. However, in most cases this requires that a certain minimum deposit be made. The exact amount of such down payment varies from manufacturer to manufacturer and from model to model; An approximate guide value could be found in the range between 30% and 40%.
The Autobank should therefore be involved from the outset in the considerations of how best to finance the purchase of a new car. Regardless of whether it’s a business or a car bank, the car letter is usually kept by both to additionally secure the credit through retention of title. In any case, the offers should be exactly compared beforehand. Autobankern generally offer the more favorable conditions, only here are no cash advances possible. For it is just for self-employed and freelancers much easier, with the help of a down payment, which can be financed, for example, by the sale or the trade in the old car, to get a relatively cheap car loan without salary.