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Getting a Car Loan when Self Employed in Mount Hope

Getting a Car Loan when Self Employed in Mount Hope

Self employment used to be niche, the preserve of the plucky few or those who had jobs people needed but not enough to offer full time positions for. That’s all changed now and self employment has been on the rise for over a decade. The pandemic has accelerated that exponentially. That’s why we asked our Mount Hope auto loans team to outline the process of applying for a car loan when self employed.

 

Just because you work for yourself, doesn’t mean you cannot access credit!

 

Lenders know there are more self employed people than ever in Canada and are rapidly building them into their calculations.

 

Car Loan when Self Employed

 

The good news is that you can still access all the same credit options as someone who is employed. The only bad news is that you’ll have to work a little harder to qualify for it.

 

Aside from the usual credit score checks, your main challenge as someone who is self employed is proving income.

 

Not only that, proving sufficient, reliable income that is enough to pay the auto loan over the entire term.

 

Proving income as self employed

 

Depending on what you do, how long you have been doing it and who does your taxes, proving income can be simple or much more difficult.

 

If you are a well established freelancer or small business that uses an accountant, proving income is easy. You’ll need your last couple of tax returns, 3 months of bank statements and the paperwork for any long term contracts you want taken into account in your auto loan application.

 

As long as you have sufficient, demonstrable income to manage all your outgoings, you should be approved for the loan.

 

If you’re a newer freelancer, contractor or small business and do your own tax returns, your job is a little more difficult.

 

You’ll need all the paperwork you can get to prove you earn enough over a sustained period to pay the loan. Remember, a lender looks at sustainable income as well as the amount of income.

 

If you have long term contracts or have serviced the same client for months, they can help.

 

Otherwise, the same bank statements, tax returns and any contract paperwork can help your application.

 

Bad credit car loans and the self employed

 

If you have less than perfect credit and are self employed, you can still access credit. You’ll likely need to use a bad credit car loan as an employed person with the same challenges as above for proving income and sustainable income.

 

We would also recommend using the usual methods of rebuilding credit to help improve your overall situation.

 

There is no reason why a self employed person cannot get an auto loan. As long as you have sufficient, sustainable income to pay the loan, you should be fine!

 

Contact one of our team to explore your options.

 

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

 

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Categories: Auto Loan

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