Most drivers who want to change cars or are looking to buy a new one, choose the financing option to bear the cost.

The facilities for granting loans for this purpose and the advantages when financing a vehicle, make it the preferred way of acquiring new cars.

However, the profile of credit applicants is very varied. One of the most frequent is the employee who has a temporary contract. Their situation is one of the most delicate when the entity accepts the financing.

Relationship between financing and temporary contract

When an entity has to assess whether to grant a loan to finance a vehicle, job security is key.

Civil servants and employees with permanent contracts are the ones with the greatest possibilities of obtaining the loan. They can guarantee monthly income, with which they can meet the loan payments.

But what about temporary contract employees? They can present their current income, but they cannot guarantee that this liquidity will be extended indefinitely, while the repayment lasts.

In the vast majority of these cases, the concession request is denied. However, you have some elements that you can take advantage of in your favor:

Banking history: A client of an entity that for many years has been able to face any type of payment, offers greater security.

Absence of delinquency: Not being on a public delinquency list is not that it is in your favor, but it will be a basic condition for the loan to be granted.

Value a guarantee: If you can guarantee the loan with some good or with the support of another person, the credit institution may have greater confidence in the concession.

What is needed to finance a car?

As we have said, the job stability of a worker, linked to the nature of his contract with the company, is a key element to finance a car. But he’s not the only one.

When applying for financing, they will ask you for several documents. Some are related to your identities, such as a photocopy of your ID or the fact that you are of legal age.

But if we limit ourselves to the economic level, these are the documents that you must present:

Last income statement.

  • Bank document with the IBAN of your account.
  • If you have any good, proof of it.
  • Labor life.
  • Last three payslips or proof of income.

With this documentation, the financial institution will assess whether or not to grant the loan to buy your new car.

If you do not have a temporary contract but are professional self-employed, the income of the last three months and also your working life will be the priority elements to make the final decision.


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