The car loan serves as an inexpensive loan for the purchase of a motor vehicle. In principle, the transfer of the registration certificate Part II to the financing financial institution serves as security. Temporary workers have a fixed employment contract with their temporary employment agency, which they mediate to different job sites.
They do not bear the risk of being temporarily unable to be hired as they are employed by the temporary employment agency. Car loans can be taken out through the car dealership and the manufacturer’s bank as well as through independent commercial banks.
The loan for the car through the manufacturer’s bank
Thanks to its economic integration with the car manufacturer, the manufacturer bank is usually willing to approve the desired car loan for a temporary worker. Since the bank has an interest in selling the car, it grants the loan at low interest rates. In some cases, temporary workers also get the financing of their new car free of interest, which is especially true for models that are difficult to sell or will soon be replaced.
These are associated with the risk of an increased loss of value or difficult to sell as a used car, but in some cases vehicles with originally weak sales figures have become popular cult vehicles.
The loan for the car through a commercial bank
If the car loan for the temporary worker is applied for through a commercial bank, the interest rate to be paid does not depend on the selected model, but only on the creditworthiness of the customer. Another advantage of borrowing from a financial institution that is independent of the vehicle manufacturer is that the employee of a temporary employment agency can act as a cash payer in the dealership and can negotiate an attractive discount in this capacity.
In many cases, the negotiated discount more than offset the higher interest rates compared to the auto bank loan. However, employees of a temporary employment agency are subject to a restriction when choosing their lender: some well-known financial institutions generally do not grant a car loan for temporary workers. This decision is not fully understandable because the employees concerned have a permanent job. However, it is permissible on the basis of the freedom of contract, so that temporary workers make sure that only banks that accept them as customers are taken into account when comparing their car loans.
The fact that employees of temporary employment agencies often earn less than their colleagues who work directly in the company does not necessarily prevent lending if the borrower chooses a sufficiently long loan term and correspondingly low monthly installments.