A car loan is not easy to get for the unemployed. Nevertheless, finding a loan is not necessarily hopeless. Different options can lead to lending. The contribution deals with how and with whom a loan can be approved.
Car loan for the unemployed – the difficult starting point
The initial situation of making a loan eligible for unemployment eligible is unfavorable. The job loss has not only reduced income but also reduced creditworthiness. At the beginning of unemployment, the greatest chances are to actually get the car loan for the unemployed. The income from ALG 1 can certainly be used to pay in installments. Depending on the amount of the benefit, the seizure exemption limits are often exceeded significantly.
The dream of a new car is not realistic, but a good used one can be financially viable. The house bank is unfortunately not a good contact for this. There are fair opportunities for financing through the car dealer. The trick is to correctly coordinate the amount of funding and the repayment period. A loan is possible if the repayment period is shorter than the period of the remaining ALG 1 subscription. The “sticking point” is the rate, it must remain portable. If the rate exceeds the realistic capacity, only a higher down payment can enable the loan without outside help.
Alternatives to car loan in the event of unemployment
The easiest and safest way is the loan guarantee. A solvent guarantor enters into contractual liability. The tense creditworthiness of the borrower loses its effect. Nevertheless, credit-independent loans should be looked for. The car loan for the unemployed can now be approved, but the borrower is still rated as a credit risk if interest rates depend on the credit rating. The interest on a credit-dependent loan offer increases significantly.
The guarantee will definitely make the loan comparison interesting again. The dealer offering should not remain the only source of information. Interest subsidies are kept within narrow limits, especially for used cars. With a loan amount of up to 5,000 USD, a small loan from a direct provider is recommended.
The credit for buying a car privately
A solvent guarantor cannot always relax the situation. Nevertheless, the loan request for the car purchase does not have to be given up. The private loan can still make it possible to buy a car. Various portals offer contact to private investors today. Similar to an online auction, the loan request can be published on the platforms. Investors, mostly small investors, can bid on it.
Vehicle financing and loan requests for which a motor vehicle serves as security are welcome with private donors. In addition to the personal creditworthiness of the borrower, the real value of the vehicle secures the investment. A certificate is available for the valuation of the vehicle. If the real value is in relation to the loan amount, the car loan for the unemployed is approved in 80 percent of the cases.