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How to get a car loan when you are self-employed

How to get a car loan when you are self-employed

Are you self-employed and need to get a new car? If you are running your own business, kudos to you for taking the plunge into the world of entrepreneurship.

There are some important things you will need to take into consideration when you are trying to secure financing for a new car, as our Campbellville car loans team explains.

How long have you been in business?

One of the first questions that will come up when you are trying to secure a self-employed car loan is how long you have been in business.

The longer your business has been in operation, the easier time prospective lenders will have in assessing your income.

The single biggest challenge that self-employed Canadians face when applying for a car loan is being able to prove they make enough money to service their loan.

Lenders, generally speaking, will not approve a loan if your debt-to-income ratio is more than forty percent.

If your company is relatively new and has less than one year in operation, then you should provide lenders with copies of your bank account statements and contracts that your customers signed.

These contracts, coupled with bank account information, should allay any concerns the lender may face.

Taking a more detailed look at your credit score

Most self-employed Canadians use their personal credit cards and lines of credit to float their business. This is the simplest way to access capital for your business, but it could be doing untold damage to your credit score.

If you are carrying large amounts of debt, it will become very expensive to service, especially with rising interest rates hitting the Canadian economy.

You should take a closer look at your credit score and see if there is any way you can raise your score by paying down outstanding debts.

Selecting the right vehicle for your business

You will need to decide whether you will be purchasing an EV or hybrid for your business.

Hybrids offer the best of both worlds; you are saving money whenever you are drawing from the batteries to commute around town, and the super fuel-efficient gas-powered engine will help you save when you are going for a long-distance drive.

With gas prices rising and will soon reach three dollars per litre, you should consider going with an EV.

The EV gives you total peace of mind because you never have to buy gasoline again. You don’t have to worry about range anxiety because the latest generation of EVs has well over 400KM of range on a single charge; you also have the option of charging your vehicle at home.

Where to get the best self-employed car loans in Campbellville

If you want to access the best self-employed car loans in Campbellville, you need professional help. You should contact your local car dealership that specializes in helping self-employed Canadians.

The dealership is able to get you approved for a car loan, even if your credit score is weak. Another benefit of working with the dealership is they already have a vast inventory of hybrid and EVs to choose from, so you could head over to the dealership now and drive home in a new car tonight.

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

Categories: Auto Loan

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