Car loan and fixed-term contract

The purchase of a motor vehicle requires significant financial resources, whether it is new or used. For that, the recourse to a car loan is current however, with a job in CDD, is it possible to obtain your loan?

Car credit

Car credit

The car loan, also called car loan, is a financing widely used in the country to acquire a new or used motor vehicle.

Ranging from small budgets to larger sums, this loan is open to everyone provided that they can repay the capital borrowed. Therefore, the future borrower must present to the body managing the credit enough guarantees to prove its solvency and increase its chances of obtaining an agreement allowing it to carry out its project.

The work contract

The work contract

Among the solvency guarantees, the employment contract is an important element because it determines the duration of time over which the borrower will receive an income. Thus, a borrower with an open-ended contract (CDI) will be able to borrow over a longer period and increase his chances of obtaining credit.

For a borrower with a fixed-term contract job (fixed-term contract, temporary work, paid internship, etc.), the latter will not be able to benefit from the same loan conditions as a permanent contract counterpart. Indeed, its contract ending on a specific date, the borrowing period will be limited which consequently imposes limits as to the choice and the amount of the project.

However, it is entirely possible for a CDD person to obtain a car loan.

Buy back your credits and finance your vehicle

Buy back your credits and finance your vehicle

If the employment contract is an important element in obtaining a car loan, the borrower’s debt ratio is just as important.

In fact, if the borrower already has one or more debts (credit, tax delay, bank overdraft, payment in installments, etc.), his debt capacity becomes weaker and consequently, the latter can borrow less important. In some cases, the debt capacity does not make it possible to carry out a car loan and the financing of the project then becomes more difficult.

In this type of situation, credit consolidation can be an interesting operation. The borrower can combine all of his debts into a single loan, accompanied by a single and reduced monthly payment. This is calculated based on the borrower’s real repayment capacities, allowing him to envisage a new project. In addition, the borrower has the possibility of reserving a sum of money intended for the realization of a new project, in this case, a car.

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