Do I Need a Job to Buy a Car?

| December 20, 2010

This question comes up every once in a while, especially from newly licensed drivers, and the simple answer as to whether or not you need to justify a car is…it depends.

New Car vs. Old Car

If you’re buying a used or older car that only costs $500 or $1,000 and you have the money saved up in your account, you can purchase the car out right. In such situations you don’t need a job to buy the car, you just need to have the money to purchase it.

Similarly, if you’re purchasing a new or more expensive car, if you have the money to pay for it, you don’t need to have a job. However, if you need financing in order to purchase the car, you had better have a job.

Banks and other lending institutions do not like lending money to people who don’t have the means to pay them back. They usually like to see that you not only have a job but a good credit rating that will make them feel comfortable enough to lend you the money to purchase the car. If you have poor credit and no job, it will be tough to finance a car purchase.

Car Related Expenses

No matter what type of vehicle you buy, whether new or used, there are car related expenses. You may not need a job to buy the car but it costs money to register and insurance the car.

If you have someone funding your expenses such as a parent or spouse, then no, you don’t need the job to buy or maintain your car. Unfortunately, most of us are not so lucky. We have to work to pay the bills that are associated with car ownership.

With the rising gas prices, you bet that you’ll need a job to pay for gas, oil changes, regular maintenance and the monthly or annual insurance bills.

To sum it up: It’s not absolutely necessary to have a job in order to buy a car as long as you have the financial wherewithal to cover all of your expenses. If you don’t, then you need to have a job.

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Category: Automobile

About the Author ()

Felicia A. Williams is a wife, mother, freelance writer and owner of Tidbits About Money.

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