Car loan during probation with a guarantor: How to secure your financing in 4 steps
31/05/2025
11
Minutes
Katrin Straub
Managing Director at nextsure
Are you in your probationary period and urgently need a car? That is a hurdle familiar to more than 60 per cent of applicants at this stage. A financially strong guarantor is often the key to success.
The topic in brief and concise terms
A guarantor with excellent creditworthiness can increase the chance of getting a car loan during the probationary period by over 80 percent.
Banks almost always require a suretyship without benefit of discussion, under which the guarantor is immediately liable if payment is missed.
The guarantor must meet strict criteria: a permanent job, a high net income and a clean SCHUFA report.
The core issue: Why banks hesitate during the probationary period
Banks regard loan applications during the probationary period as high risk. The main reason is the shortened notice period of just two weeks, which is set out in the German Civil Code (§ 622 para. 3 BGB). Statistically, around 15 per cent of all employment relationships end during or at the end of this phase. For lenders, this means a significantly higher default risk of up to 30 per cent compared with an applicant on an open-ended contract. Therefore, many institutions reject a car loan for new drivers without additional security. This increased caution often leads to direct refusals or significantly worse interest rates, which can make the loan several hundred euros more expensive. The bank is thus protecting itself against the potential loss of your income. Without a Plan B, the hurdle for car financing is therefore very high from the outset.
The solution: How a guarantor secures your loan approval
A guarantor acts as crucial security for the bank and increases your chances of approval by more than 80 per cent. By contract, they undertake to stand in for your liabilities if you can no longer make the instalments. Banks almost always require a guarantee without the defence of prior action. This means the guarantor waives the „defence of prior action“ (§ 771 BGB) and can be called upon immediately as soon as you are even one instalment in arrears. In contrast to a default guarantee, the bank does not first have to pursue a lengthy court procedure against you. This direct liability makes the guarantor first-rate security for the bank, almost completely offsetting the risk posed by the probationary period. This often makes a loan possible despite a fixed-term employment contract.
The requirements profile: Who is suitable as a guarantor
Not everyone can act as a guarantor; banks assess the guarantor’s creditworthiness at least as strictly as your own. The person must have a stable and sufficiently high income that is significantly above the current garnishment exemption threshold of around EUR 1,400. An open-ended employment contract is a basic requirement. A SCHUFA score of over 97 per cent is considered ideal. A guarantor must meet the following criteria:
Be of legal age and resident in Germany.
A permanent employment relationship that has existed for at least six months.
A net income that covers their own living expenses and the potential loan instalment.
A clean SCHUFA report with no negative entries.
No other ongoing loans or guarantees.
A sound household budget calculation is crucial to demonstrate financial capacity.
The process: 4 steps to a car loan with guarantors
A structured application process significantly increases the chances of success. With the right preparation, you can avoid follow-up questions and speed up the bank’s decision by up to three working days. Go through the following four steps carefully:
Prepare the documents: Both you and your guarantor will need the last three payslips, the employment contract, a copy of the identity card and up-to-date bank statements.
Submit the joint application: Complete the loan application together. The guarantor must enter their details in the designated section and sign the guarantee agreement.
Wait for the credit check: The bank will now assess the creditworthiness of both parties through a SCHUFA check and the analysis of the submitted documents. This process usually takes one to two days.
Conclusion of the contract and disbursement: After a positive review, you will receive the loan agreement. Once it has been signed and you have completed postal or digital identification, the loan amount will be disbursed within 48 hours.
This process also applies to car financing for students.
The legal situation: What a suretyship agreement really means
The surety agreement is a one-sided binding contract that imposes obligations exclusively on the surety. Its legal basis is found in sections 765 et seq. of the German Civil Code (BGB). By signing, the surety is liable with all attachable assets for the entire loan amount, including interest and any reminder fees. Liability ends only once the loan has been repaid in full. An early exit from the suretyship is possible only in extremely exceptional cases, for example if the suretyship is contrary to public policy because it places the surety under complete financial strain. Our expert tip: The surety should review the loan agreement with the same care as the borrower and be aware of the long-term responsibility for up to 96 months. A loan broker for difficult cases can provide advice here.
Risk management: How both parties can safeguard themselves
A guarantee poses a significant financial risk for the guarantor. If the borrower defaults, the guarantor must immediately cover instalments that are often more than €300 per month. To minimise this risk, the borrower and guarantor should enter into a private written agreement. This can set out the circumstances under which the guarantor steps in and how the borrower repays the amounts paid. Another, albeit expensive, option is residual debt insurance, which covers the instalments in the event of unemployment or incapacity for work. However, the cost can be as much as 15 per cent of the loan amount. Open communication about the financial situation is the best safeguard for both parties, so that even with a loan despite poor credit rating the relationship is not strained. This keeps the relationship of trust that made the guarantee possible intact in the long term.
A possible alternative to a guarantor is taking out the loan with a second borrower. Unlike the guarantor, who only has obligations, the second borrower is the bank’s equal contractual partner. They not only have the same obligations to repay the loan, but also the same rights to the item being financed – in the case of a car loan, they therefore become co-owner of the vehicle. This option is often the better choice for spouses or life partners, as both benefit from the car. For the bank, a second borrower represents security that is just as high as a guarantor, since two full incomes are liable for repayment. You should therefore carefully check whether this arrangement is not more suitable for your personal situation than a loan for employees in their probationary period with a guarantor.
Conclusion: Achieving success with the right strategy
Getting a car loan despite being in your probationary period with a guarantor is absolutely realistic. It requires careful preparation and a financially strong partner who is willing to take on this responsibility. With transparent communication and by choosing the right type of guarantee, you can convince the bank of your reliability. That means nothing stands in the way of your dream of a new car, even in your new job. Request an individual risk analysis now: Have your insurance situation checked free of charge and receive concrete suggestions for optimisation.
More useful links
Laws on the Internet provides insight into Section 622 of the German Civil Code (BGB) on notice periods in employment relationships.
Laws on the Internet explains Section 765 of the German Civil Code (BGB), which defines the concept and basic principles of suretyship.
Laws on the Internet provides information on Section 491 of the German Civil Code (BGB) and the general provisions for consumer credit agreements.
Laws on the Internet sets out Section 18a of the German Banking Act (KWG) on creditworthiness assessments for real estate loans.
Federal Statistical Office (Destatis) offers comprehensive statistics and information on wealth and debt in Germany.
Federal Statistical Office (Destatis) contains a press release from July 2024 with current data on wealth and debt.
German Bundesbank provides statistics on interest rates and yields for consumer loans to private households (instalment loans).
Consumer Advice Centre offers an article on spousal suretyship and the conditions under which guarantors cannot always be required to pay.
FAQ
What happens if the guarantor dies?
In the event of the guarantor's death, the guarantee obligation passes to his heirs. They then remain liable for the loan within the scope of the estate, provided they do not renounce the inheritance.
Can I terminate a guarantee early?
No, unilateral termination of the guarantee by the guarantor is generally excluded. Liability continues until the loan has been repaid in full. Only in extreme hardship cases (unconscionability) is it possible to challenge it.
Does acting as a guarantor affect my own credit rating?
Yes, taking on a guarantee is recorded with SCHUFA and can affect your own creditworthiness. When applying for your own loan, the guarantee is treated as a financial encumbrance.
Which type of guarantee is safest for the guarantor?
A secondary suretyship is the safest option for the guarantor, as they only become liable once the bank has exhausted all legal remedies against the debtor. However, banks almost always prefer the joint and several suretyship.
Is the guarantor also liable for interest and fees?
Yes, the suretyship generally extends to the entire claim. This includes not only the outstanding loan balance, but also any accrued interest, default interest and any reminder or debt collection costs.
Can my partner act as a guarantor for me?
Yes, a spouse or life partner can act as guarantor, provided they meet the bank’s creditworthiness requirements. However, in many cases it is more sensible for couples to take out the loan together as two borrowers.
