Car loan despite probation period with guarantor: Secure your financing in 4 steps
31 May 2025
4
Minutes
Katrin Straub
CEO at nextsure
Are you in the probation period and urgently need a car? This is a challenge familiar to more than 60 percent of applicants at this stage. A financially robust guarantor is often 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 more than 80 percent.
Banks almost always require a direct guarantor, whereby the guarantor is immediately liable in the event of a payment default.
The guarantor must meet strict criteria: a permanent job, high net income, and a clean credit report.
The Core Issue: Why Banks Hesitate During the Probationary Period
Banks classify loan applications during the probationary period as high-risk. The main reason is the shortened notice period of just two weeks, which is anchored in the German Civil Code (§ 622 para. 3 BGB). Statistically, about 15 percent 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 percent compared to an applicant with a permanent contract. This is why many institutions reject a car loan for new drivers without additional security. This increased caution often leads to direct rejections or significantly worse interest rates, which can make the loan several hundred euros more expensive. The bank thus protects itself against the potential loss of your income. Without a Plan B, the hurdle for car financing is therefore very high right from the start.
The solution: How a guarantor secures your loan approval
A guarantor acts as a crucial security for the bank, increasing your likelihood of approval by more than 80 percent. They contractually commit to assume responsibility for your liabilities if you can no longer pay the instalments. Banks almost invariably require a self-debtor guarantee. This means the guarantor waives the 'defence of prior action' (§ 771 BGB) and can be held liable as soon as you miss a single instalment. Unlike a deficiency guarantee, the bank does not have to conduct a lengthy court procedure against you first. This direct liability makes the guarantor a top-notch security for the bank, almost fully compensating for the risk of the probationary period. This way, a loan, despite a fixed-term employment contract, often becomes possible in the first place.
The Profile Requirements: Who is suitable as a guarantor
Not everyone can act as a guarantor; banks assess the creditworthiness of the guarantor at least as strictly as your own. The person must have a stable and sufficiently high income, which is significantly above the garnishment exemption limit of currently around 1,400 euros. A permanent employment contract is a basic requirement. A SCHUFA score of over 97 percent is considered ideal. A guarantor must meet the following criteria:
Adulthood and residence in Germany.
Permanent employment that has lasted for at least six months.
Net income that covers their own living expenses and the potential loan rate.
A clean SCHUFA report with no negative entries.
No other high-running loans or guarantees.
A clean household budget is crucial to prove financial capability.
The Process: In 4 Steps to a Car Loan with a Guarantor
A structured application process significantly increases the chances of success. With the right preparation, you avoid follow-up questions and can speed up the bank's decision by up to three working days. Carefully go through the following four steps:
Prepare documents: Both you and your guarantor need the last three payslips, the employment contract, a copy of the ID card, and current bank statements.
Submit a joint application: Fill out the loan application together. The guarantor must enter their details in the designated section and sign the guarantor agreement.
Await credit check: The bank will now check the creditworthiness of both parties through a SCHUFA enquiry and analysis of the submitted documents. This process usually takes one to two days.
Contract conclusion and disbursement: After a positive check, you will receive the loan agreement. Once signed and verified by post or digitally, the loan amount will be disbursed within 48 hours.
This process also applies to a car financing for students.
The Legal Situation: What the Guarantee Agreement Really Means
The surety contract is a one-sided contract that imposes obligations solely on the guarantor. Its legal basis is found in Sections 765 ff. of the German Civil Code (BGB). By signing, the guarantor is liable with all of their attachable assets for the entire loan amount, including interest and possible dunning fees. The liability only ends when the loan is fully paid off. An early exit from the suretyship is only possible in extreme exceptional cases, for example, if the suretyship is considered immoral because it completely overwhelms the guarantor financially. Our expert tip: The guarantor should examine the loan agreement with the same care as the borrower and be aware of the long-term responsibility lasting up to 96 months. A credit broker for difficult cases can provide advisory support here.
Risk management: How both parties can protect themselves
A guarantee involves a significant financial risk for the guarantor. If the borrower defaults, the guarantor must immediately cover instalments often exceeding 300 euros per month. To minimise this risk, borrowers and guarantors should arrange a private written agreement. This can stipulate under what conditions the guarantor will step in and how the borrower will reimburse the payments made. Another, albeit expensive, option is a residual debt insurance, which covers the instalments in the event of unemployment or incapacity to work. However, the costs can amount to up to 15 per cent of the loan amount. Open communication about the financial situation is the best safeguard for both parties, in order to keep the relationship unstrained, even with a loan despite poor credit rating. This ensures that the trust, which initially enabled the guarantee, remains intact for the long term.
Exploring Alternatives: When a Second Borrower Makes Sense
An alternative to a guarantor is to take out the loan with a second borrower. Unlike a guarantor, who only has obligations, the second borrower is an equal contractual partner of the bank. They not only have the same repayment obligations but also the same rights to the loan asset – in the case of a car loan, they become co-owners of the vehicle. This option is often the better choice for married or cohabiting partners, as both benefit from the car. For the bank, a second borrower provides just as much security as a guarantor, since two full incomes are liable for repayment. Therefore, carefully consider whether this arrangement is more suitable for your personal situation than a loan for employees in probationary periods with a guarantor.
Conclusion: With the right strategy to success
More useful links
Gesetze im Internet offers insights into § 622 of the Civil Code (BGB) regarding notice periods for employment relationships.
Gesetze im Internet explains § 765 of the Civil Code (BGB), which establishes the definition and fundamentals of a suretyship.
Gesetze im Internet provides information on § 491 of the Civil Code (BGB) and the general provisions for consumer loan contracts.
Gesetze im Internet outlines § 18a of the Banking Act (KWG) concerning creditworthiness assessments for real estate loans.
Statistisches Bundesamt (Destatis) offers comprehensive statistics and information on wealth and debt in Germany.
Statistisches Bundesamt (Destatis) includes a press release from July 2024 with current data on wealth and debt.
Deutsche Bundesbank provides statistics on interest rates and yields for consumer loans to private households (installment loans).
Verbraucherzentrale offers an article on spousal surety and the conditions under which guarantors may not always be required to pay.
FAQ
What happens if the guarantor dies?
In the event of the guarantor's death, the guarantee obligation transfers to their heirs. They then continue to be liable for the loan within the scope of the estate, unless they renounce the inheritance.
Can I terminate a guarantee early?
No, a unilateral termination of the guarantee by the guarantor is generally excluded. The liability remains until the loan is fully repaid. An objection is only possible in extreme cases of hardship (immorality).
Does a guarantee affect my own creditworthiness?
Yes, assuming a guarantee will be noted by SCHUFA and can affect your own creditworthiness. When applying for your own loan, the guarantee will be considered a financial liability.
What type of guarantee is safest for the guarantor?
The deficiency guarantee is the safest option for the guarantor, as they are only liable after the bank has exhausted all legal means against the debtor. However, banks almost always prefer the independent guarantee.
Does the guarantor also cover interest and fees?
Yes, the guarantee generally covers the entire claim. This includes not only the remaining loan balance, but also any interest, default interest, and possible reminder or collection costs.
Can my partner vouch for me?
Yes, the spouse or partner can act as a guarantor, provided they meet the bank's credit requirements. However, in many cases, it is more sensible for couples to take out the loan together as two borrowers.
