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How to find a Car Loan in Dunnville when Self Employed

How to find a Car Loan in Dunnville when Self Employed

The pandemic has led to a massive spike in the number of Canadians are starting their own business. These newly minted entrepreneurs are experiencing some challenges being able to access traditional forms of financing like car loans.


Most conventional car loan providers in Dunnville have a cookie cutter approach. Their process is geared towards borrowers that fit a specific profile, namely 9-5 workers.


A generation ago, the majority of people had one job that they stuck with for most of their life. Their salary was pretty much the same, so all you needed to get a car loan was a pay slip and to have been in your job for more than 90 days.


Covid and the internet has changed the way we live and work, the days of working a single job for your entire life are long gone. Many people are now making a business for themselves, so we're going to explain how to find a great car loan in Dunnville when self employed.


Understanding the pandemic loan underwriting process


We are still battling the pandemic with the Omicron variant front and center in the news.


Interest rates are still at historic lows but are going to start rising in the 2022. So, you will need to be proactive if you want to get a good deal on a car loan in Dunnville when self employed.


Imagine you were lending out money for car loans in Dunnville, what are the qualities you would want in a prospective borrower? You would want them to have a good credit score and a stable income so they can repay the loan as agreed, right?


Lenders are now more conversative because no one can predict what is going to happen, this is our first pandemic in recent history.


No lender wants to have bad debts on their books, so they have increased the minimum credit score needed for a prime interest rate car loan.


At the time of writing this, the minimum credit score is 680 but to be safe, you should aim for a 700+ credit score.


If you haven’t checked your score in a while, you can get free access by signing up with TransUnion and Equifax.


Having a stable income


Even with a great credit score, your income is the most important determining factor. You will need to provide proof you have a stable income which can be difficult when you are self-employed. If you were an employee, all you needed to show as your latest pay slip.


You should print up your bank statements for the last year and also your income tax assessments. These documents will show that you are receiving income on a regular basis and the lender can see that you are reporting your income to the Canada Revenue Agency (CRA).


Getting a Great Car Loan in Dunnville when Self Employed


Now that you have some insight into what it takes to get a self-employed car loan, you will need to find the most competitive lenders. This is not something you should attempt o your own.


There are many online car loan providers but you will not get the best terms from those lenders, your best bet is going through a local car dealership.


The dealership has a vast network of lenders who will give you a better deal than what you could ever find online. Along with getting a great car loan, the dealership has an inventory of cars that you can test drive today!


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


For any questions or concerns, please don't hesitate to contact us here! 


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