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Car Loan as a Self Employed Person in Smithville

Car Loan as a Self Employed Person in Smithville

Are you self employed or a contractor and looking for a car loan? Want to know whether you can access finance when you work for yourself? The good news is that you can access the same range of financial products as an employee.


Our Smithville car loans team explains how you can apply for a loan when you’re self employed or a contractor.


Self employed car loans


Accoring to Statistique Canada, there were 2.77 million self employed people in Canada in 2020. That number is likely to be more now as more people have decided to go it alone.


That’s a significant number of people who have to find alternative funding methods if mainstream lenders didn’t work with them. Fortunately, most lenders now do.


Your main challenge isn’t proving your income. It’s proving you have a sustained income sufficiently regular to be able to fully repay the loan.


It’s a narrow distinction but an important one. A lender is less worried about how much you earn and more concerned that those earnings are regular enough to allow you to repay without putting you in difficulty.


If you can demonstrate that, you’re free and clear.


Applying for a car loan as a self employed person


The process of applying for a Smithville car loan is the same for someone who is self employed as it is for an employee. There’s just a little more paperwork.


That means:


Checking your credit report


As soon as you decide to go for a car loan, check your credit report. Make sure all your personal details are correct, that all accounts are accurate, all the credit accounts are correct and the entire report accurately reflects your position.


Take a note of your credit score too. If it’s good or excellent, you going to be fine. If it’s lower, perhaps take a little time to improve your credit score.


Save the down payment


A down payment has a big part to play in any car loan and it’s the same here. Save as much as you can to put down. The more the better. Higher down payments lower the loan amount, demonstrate to a lender that you can save and reassures them they are covered if you default.


All will help your application.


Get your paperwork together


Now the hard part. Get your paperwork together. Aside from the usual proof of ID and address, you’re going to need to prove that income.


If you have a freelance contract, work under any kind of formal agreement or contract, have passive income or income from elsewhere, now you have to prove it.


Collect all the paperwork that outlines your position. That should any contract or agreements, 3 months of bank statements, your last tax return or a statement from the accountant that does your taxes.


Once you have all those things, you can apply for the car loan.


Work with car loan experts


Your final task is to come see us. Working with car loan experts improves your chances of getting a great deal on a car loan. We work with self employed people all the time to know the requirements and the specific needs of lenders with regards earnings.


Working with us can seriously improve the chances of getting that loan!


We will use all our skill and experience to deliver the lowest possible Smithville 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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