Buying a car when you work seasonally can be challenging. While car financing for seasonal workers is available, you can expect to face greater scrutiny.

Why lenders are cautious of seasonal income

Auto financing hinges on a financial institution’s confidence in your ability to make the monthly payments. When your income varies by season or job type, lenders may assess your risk level as being higher than that of those with year-round employment. However, this view doesn’t mean a financial institution will automatically disqualify you.

The $1,800/mo. threshold

Most auto financers look for a minimum monthly income of around $1,800. For seasonal workers, meeting or exceeding this income level during peak months is key, but so is demonstrating how you’ll manage during the off-season.

Some lenders may also want to see at least three months of employment at your current job before considering you, which can be tough for those in seasonal roles. Other auto financers may prefer a two-year history of consistent seasonal work in the same industry or with the same employer to show long-term income stability.

Ways to improve your chances of approval

If your income varies month-to-month, taking the following actions could help you qualify for auto financing:

• Make a larger down payment. A down payment of 10-20% reduces the borrowed amount, lowering the lender’s risk and improving your interest rate.

• Show proof of steady income. Pay stubs, bank statements, and past tax returns all verify your earnings. Employer letters confirming your job and seasonal return date are helpful as well, along with any paperwork showing you’re receiving unemployment benefits.

• Consider a co-signer. Having someone with stronger credit and steadier income can increase the likelihood of approval and improve your finance terms.

• Build credit where possible. If your credit history is limited or mediocre, using credit-building tools and making on-time payments can help you as you prepare to seek financing.

Planning ahead generally pays off

If you’re a seasonal worker, you may not want to visit a randomly chosen car dealer. Depending on your employment status, that dealership’s financing providers may not want to work with you. Instead, try getting prequalified through Credit Acceptance.

In addition to sharing the monthly payment you could be approved for, we’ll provide you with the nearest lots in our network of over 15,000 dealers. The advantage of working with these dealerships is that they often cater to individuals with poor credit and irregular income.