When applying for auto financing, lenders consider your employment history. While the length of time you've been at your current job isn't the only determining factor, it can significantly impact your chances of approval, especially if you have fair or poor credit.

The desired length of employment for car financing

Lenders typically assess your job stability to determine your repayment ability. Here's how employment history factors into the approval process:

For borrowers with good credit

Lenders are generally less concerned about your employment length if you have a strong credit score (typically 670 or higher). In many cases, they only verify that you currently have a source of income. Borrowers with good credit often qualify for financing, even with a short employment history.

For borrowers with fair or poor credit

Subprime lenders — those specializing in financing for individuals with lower credit scores — often require a longer employment history. Typical expectations for these borrowers might include:

• At least six months at your current job
• A total employment history of three years (doesn’t have to be at the same job)

Other factors that affect employment length requirements

Down payment

Making a larger down payment, typically 20% or more, can reduce the lender's risk and may compensate for a limited employment history.

Debt-to-income ratio (DTI)

Lenders assess your DTI to ensure you can manage payments alongside existing debts. A lower DTI can strengthen your application, even if your job tenure is shorter.

Type of employment

Full-time W-2 employees may find qualifying easier than self-employed individuals or contractors. Self-employed applicants must typically provide two to three years of tax returns to prove income stability.

Proof of income

Lenders commonly require borrowers to earn between $1,500 and $2,500 gross per month, but that’s not always the case. You may have to show recent pay stubs or, in some cases, bring a job offer letter accompanied by the first pay stub. These documents ensure that you have a reliable income source to make payments.

What if you recently changed jobs?

You may still qualify for auto financing if you've recently started a new job. Lenders will likely evaluate your overall employment history rather than focusing solely on your current role. Once again, proof of stable income and a solid work history can help demonstrate financial reliability.

Your employment may not hold you back

If you're concerned about your job history, improve other aspects of your application, such as your credit score or down payment.

At Credit Acceptance, we specialize in helping buyers secure financing regardless of their credit or employment history. Start the car-buying process today and get pre-qualified for auto financing online.