Nowadays, it is customary to first issue new employees with a temporary employment contract. After that, there may be an extension for another year or permanent employment. However, this also has an impact on the employee that affects his financial transactions. For example, if the car breaks down and the financial situation does not permit the purchase of a car, all that remains is to take out a car loan with a temporary employment contract. But there are peculiarities here.
Are loans with a limited employment contract possible?
In principle, loans can also be granted with a temporary employment relationship, but with restrictions. The loan term must not exceed the term of the temporary employment contract. This has consequences for the borrower, because the loan must also be repaid within this period if the employment contract is limited, for example one year. This significantly limits the loan amount, unless the employee earns so much money that he can afford a high rate.
The situation is different with a car loan with a fixed-term employment contract if it is already certain that the employee will be taken on for an indefinite period. With a written confirmation or a new employment contract, the borrower gets a normal loan with a longer term.
Car loan through the dealer bank
Anyone who wants to finance their car through the dealer bank will also be disappointed with a temporary employment contract. The dealer bank also checks the employment relationship. If it is temporary, then there is only a loan term that does not exceed the limited employment relationship.
Car loan from abroad
Some customers have already had experience with foreign banks. As a rule, it is people with problem cases who turn to a foreign bank. If the entries in the Credit Bureau do not allow a loan in Germany, these banks could help in the past.
A car loan with a temporary employment contract is not possible at all through a foreign bank. The purpose is free, but the bank immediately rejects borrowers with a fixed-term contract. In order to get a loan from abroad, you must have a permanent employment relationship, which must not be limited in any case. Those who had hopes for a car loan with a temporary employment contract from abroad will unfortunately be disappointed.