If a car is needed and there are no financial reserves, only a loan can help. Many decide to find suitable financing for the offers of the retailer banks. The offers are generally not very different from branch banks or internet banks. However, the dealer banks ask for the income of the car buyer. If the car buyer purchases short-time allowance, this circumstance can lead to difficulties with a loan commitment. However, it depends on the type of short-time working allowance, because here too there are differences.
Car loan despite short-time work
There are two types of short-time work. The most common form is short-time work due to bad weather. In some industries, such as construction, short-time work is quite common. This is then paid due to the weather. The best example is the winter months. If there is snow and ice on the streets, then the work is stopped and the employee receives short-time allowance. In this particular case, the short-time allowance is temporary, because at some point the winter is over.
However, there are also short-time working allowances when the order situation is poor. Then there are problems with a car loan despite short-time work, because the banks then distance themselves. After a short-time work in this case, unemployment can also be threatened if the order situation does not improve significantly.
With a guarantor, a car loan is easier despite short-time working
A crucial turn in loan approval can occur when the loan seeker has a guarantor. This is liable in the event of non-payment by the actual borrower. The past years have shown that the banks are ready for a car loan despite short-time working, if a guarantor exists. In this case you do not take any financial risk, because the guarantor undertakes to pay if a loss occurs. However, this step should really be considered only if short-time working has actually occurred due to bad weather. In an unclear economic situation of the company one should not take the risk. In the worst case, unemployment threatens and the money is no longer sufficient to pay the monthly loan installments. That would be the worst conceivable situation a guarantor could get into.