Job Tenure

[joeblow2]

What impact does job tenure have on an Auto Loan decision. Is there any difference between 10,15,20 or 25 years on a job? At what point does job tenure have no real impact ?

[FicoGuy2019]

If I'm not mistaken, 2 years with the same employer is what most places like to see on an application.  I don't think they view it differently if you have 5 or 20 years....At least 2 years and your salary is what they look at.

[joeblow2]

So anything after 2 yrs has no Positive imapact on an Auto loan application? 2 yrs is the same as 30 years or more?

[FicoGuy2019]

Not that I have ever seen.  You can be employed for 30 years and make only 30k and be employed for 2 years and make 60k...and have the same credit report....it's mainly about income and credit and current debt...job stability plays a role but not a huge role.  Also depends on dealer and who you are trying to get financing with.

[cdtotten]

From my experiences job tenure has zero effect on car loans.

Most lenders don't verify income anymore unless its a very large purchase, so it doesn't even really come into play - as it really shouldn't. As mentioned above, just because you have been with the same company for a long time really doesn't indicate anything other than potentially being complacent. Lenders are looking at scores, past auto history, income, and debt... that's about it.

[Anonymous]

"From my experiences job tenure has zero effect on car loans.

Most lenders don't verify income anymore unless its a very large purchase, so it doesn't even really come into play - as it really shouldn't. As mentioned above, just because you have been with the same company for a long time really doesn't indicate anything other than potentially being complacent. Lenders are looking at scores, past auto history, income, and debt... that's about it."

Thats really incorrect and in fact a way too simplistic version.

Many finance companies do not verify employment or income, depending on the credit report of the applicant. They also are assuming that you, the applicant, will actually be telling the truth on your application. Telling a lie and then being found out could get your deal bounced, voided, or find you in default. Its also fraud, and a criminal offense to willingly lie for the purpose of obtaining a loan.

Now if your credit is spotty or you have had some challenges, "proof of income" may be required to get the deal bought. That usually involves your last few pay stubs- and math to see if your declared income matches.  Subprime lenders may require more or less documentation depending on the deal. Again that is up to the finance company.

In general a dealership finance department is considered a representative of the finance company so they themselves do the filtering and inquiring for the deal, they make decisions to help figure out who will get the deal bought and why, they then take that to the finance company. If they start pushing bad deals and bad paper they could easily loose their banking relationship- and definately start paying penalty payments for the bad paper.  A improperly financed deal that gets voided by the finance company after initial approval causes both charge backs and penalties to the dealership.

Now to say employment length does not matter: that is really incorrect, many finance companies have their own formula for that: you may need to show 1 or 2 years of employment, with the same company or 2 or 3 years unbroken employment. Many times that is supplemental to your credit score. a 780 Showing a 100K a yer income but 4 months on the job and no debt is going to be treated differently then a 640 with a few lates and 3 jobs over the last 8 months.  

Navy Federal Credit Union, when I applied for a car loan in 2005 was very specific, no loans if you had less then a year on your contract, no lonas unless you were one year on your job. So if you were at your EAS you were out of luck for 24 months or so.

[Anonymous]

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@joeblow2 wrote:

What impact does job tenure have on an Auto Loan decision. Is there any difference between 10,15,20 or 25 years on a job? At what point does job tenure have no real impact ?

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Silly, No one in America has been employeed for 15,20, or 25 years. Maybe a 6 or 7 people have been employed for 10.

[ibmrad7]

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@Anonymous wrote:

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@joeblow2 wrote:

What impact does job tenure have on an Auto Loan decision. Is there any difference between 10,15,20 or 25 years on a job? At what point does job tenure have no real impact ?

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Silly, No one in America has been employeed for 15,20, or 25 years. Maybe a 6 or 7 people have been employed for 10.

That is not correct. I am working for Americas biggest Pharmaceutical company and most of my team mates are working here for over 15 years, one guy for 29. Same is the case with other teams. Before this I was with a telecom client and the same story.. people working for 10-15 years.... So its very well possible and not that rare to see

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[cdtotten]

USMC - I wasn't trying to imply that income isn't important... I was saying that because a lot of lenders don't verify income, the length of time at your job doesn't usually even factor in that much. I too agree that lying on an application is a horribly wrong thing to do, and criminal in certain situations. I am not encouraging anyone to do that, just saying that I don't see much, if any difference between someone with say 5 years in job history and 30 years.

Yes, if your credit profile is much lower, then certain factors will be scrutinized more (i.e. job security). However, I think his original question was referring to staying with the same company for that long, not employed for that long. And I will reitterate that as long as you can show steady employment, it does not matter if you were with the same company the whole time.

And yes you are correct, certain lenders (mostly credit unions), are stricter on documentation requirements for loans, however most car lots are not as demanding on paper work. The past 4 cars my family has bought, not once have we had to provide a shred of evidence to support our income (although we gladly would have).

[Anonymous]

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@cdtotten wrote:

USMC - I wasn't trying to imply that income isn't important... I was saying that because a lot of lenders don't verify income, the length of time at your job doesn't usually even factor in that much. I too agree that lying on an application is a horribly wrong thing to do, and criminal in certain situations. I am not encouraging anyone to do that, just saying that I don't see much, if any difference between someone with say 5 years in job history and 30 years. But many lenders do and no thaving a year at one or up to two years unbroken can influence a deal.You have Bill gates credit yeah they do not care, that is not always the case.

Yes, if your credit profile is much lower, then certain factors will be scrutinized more (i.e. job security). However, I think his original question was referring to staying with the same company for that long, not employed for that long. And I will reitterate that as long as you can show steady employment, it does not matter if you were with the same company the whole time. Yes I agree with that-steady full time employment

And yes you are correct, certain lenders (mostly credit unions), are stricter on documentation requirements for loans, however most car lots are not as demanding on paper work. Realistically for many other reasons: like you have already had one perfectly paid off Ford loan, or bank loan through a bank they have a relationship with, you have bought multiple vehicles through that dealership, your score and application info does not have any red flags on it.  The past 4 cars my family has bought, not once have we had to provide a shred of evidence to support our income (although we gladly would have).

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