Getting a car loan in spite of an annual contract is usually not so easy, because the employer only ensures income for one year. After that, nobody can say whether the contract will be renewed or not. Therefore, it is an incalculable risk for the bank and will usually reject this car loan despite the annual contract. But there are also ways to get a loan from a bank as normal.
Guarantees increase security
If you want to get a car loan despite an annual contract, you have to offer the bank additional security in this case. This can take the form of a guarantor. If he has a secure income, there is usually nothing in the way. However, this guarantor should also have the necessary creditworthiness, i.e. a positive Schufa entry and, best of all, should not currently have any ongoing loans.
If the borrower fails, the borrower must repay the entire amount to the bank. This credit is therefore counted as if the guarantor had taken it up himself, and this could lead to over-indebtedness in advance.
Additional collateral can help
A property or condominium can also help you get a loan. Since the property can be used as security here. So if the borrower could no longer pay, the bank would have full access to the property and could auction it. But life insurance could also serve as security, because it contains sufficient capital and the bank has its security. But a high income can also result in the bank granting a loan, especially if the term is not longer than the employment contract.
A loan from a private individual
There is no bank at all if a private person issues a loan. If you have this option, you should do this, because the conditions are often better here. Especially with regard to interest rates and monthly installments. If there is no one in your circle of acquaintances or relatives who can grant a car loan despite an annual contract, you should do this via the Internet. There are providers who offer such loans. There are usually several private individuals who invest their money in this way. Because there are normal conditions, such as interest and a monthly repayment.
Banks also make exceptions
In many professions, it is now quite normal to have such an annual contract, and it is always renewed. In such cases, the bank makes an exception and grants a loan that also has a longer term. Because it can be assumed that the employment contract will be extended again and again. However, a credit comparison should also be made here beforehand, as this can save a lot of money in advance. A car loan despite an annual contract is possible.