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Best way to get a self-employed car loan in Woodstock

Best way to get a self-employed car loan in Woodstock

Canadians who are self-employed and need a new car loan have come to the right place.

Our Woodstock auto loans team will explain what a self-employed car loan is and what you need to do to get the best deal possible.

Self-employment will bring its own set of problems that most people will never have to deal with.

Is your business a sole proprietorship or is it a corporation?

Running a business that is incorporated is a lot like being an employee. Your income and the income of the business are separate.

This makes it easier for the bank to approve your car loan than if you were a sole proprietor.

As a sole proprietor, your business income and your own income are mixed together.

Potential lenders need to know how much you make every month so they can figure out how much of a loan you can afford.

Most lenders have a maximum DTI ratio of 40%, which means that 40% of your gross monthly income is the most money that can go toward paying off your current and future debts.

As a sole proprietor, financial institutions will ask for your bank statements and your most recent income tax returns to figure out what your base monthly income is.

After that is done, lenders can move on to the next step, which is underwriting.

Your credit score can make or break your car buying dreams

Having a good income is important, but your credit score can make or break you when it comes to car loans.

The average credit score in Canada is in the 680s, and to get the best rates, your credit score needs to be over 720.

If you don't already check your credit score often, you should make it a goal to do so going forward.

You don't want your credit score to drop suddenly because of a mistake that could have been fixed before you started looking for a car.

As a Canadian who works for themselves, you probably use your personal credit cards for business expenses.

This is fine, but you should try to reduce the total amount of debt you have. If you have a lot of debt, your overall credit utilization rate will go up, which will hurt your credit score.

Canada's best source for Woodstock car loans for people who work for themselves

You can't find Canada's best deals on car loans for self-employed people online. You need to call a car dealership near you to find out what your options are.

The dealership has helped many other self-employed Canadians like you get a car loan in Woodstock, so you should contact them today.

The dealership will have a large selection of cars for you to choose from. This will make the whole process of buying a car more enjoyable.

Now that we've talked about how to get a car loan in Canada if you're self-employed, you can go to a dealership and find the right car for your needs.

Just remember that the Bank of Canada is going to raise interest rates soon, so you need to buy your new car before the rates start to go up.

We will use all our skill and experience to deliver the lowest possible Woodstock auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.

Categories: Auto Loan

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