General: (713) 270-9005

Sales: (281) 994-7105

5 Factors to Finding a Car Loan Without a Job

Posted by Shabana Motors - 06 August, 2013

There is no circumstance more frustrating than not having a car while being unemployed. Without proof of income, many car loan companies won’t even consider approving your financing application. On top of that, trying to find a job without a car is usually very hard. To break this infuriating cycle, use the following tips to get a car loan while being unemployed.

In-House Financing

Dealerships that provide in-house auto financing are usually more willing to work with high-risk loan applicants, such as people who don't have jobs. A car dealership is a sales-motivated business, and being able to provide financing to a large group of people is seen as a sales tool. You can use this perception to your advantage while negotiating the loan you need for the car purchase.

Down Payment

The more money you can set aside for a down payment on a car, the less you will need to finance with a car loan. A loan’s principal, or the amount being borrowed, directly affects the qualifications most lenders will look for when deciding whether to approve or reject your application. If you are currently without a job, but still need to buy a car, paying more upfront with the down payment can strengthen a loan application’s chances of approval.

Good Credit

A better than average credit rating is a significant factor that can help you buy a car without current employment. Lenders, especially those who specialize in high-risk loans, will see a higher credit rating as a sign of financial responsibility. In some cases, this can balance out any deficiencies in current income and lead to the loan being approved.

Proof of Income

Proof of any kind of income, not just regular employment wages, should be organized and presented to the lender when you apply for a car loan. Whenever you are paid for work or services, be sure the income is reported on a 1099-MISC tax form. A combination of part-time work, one-time jobs, investment income and any other income source can provide proof that you have the ability to make regular and timely loan payments.


A car loan cosigner, such as a parent or spouse, who is earning income from a job and has acceptable credit can also help you buy a car if you are currently unemployed. The financial standing, like credit rating and employment, of a trusted cosigner will bolster your car loan application and make it possible for you to finance your car purchase.

A car makes finding a job substantially easier. The previous five factors can help you buy a car without having a job first.

New Call-to-Action

Topics: Car Financing

Recent Posts