Car Finance for the Self-Employed

car finance for self employed

When you're self-employed, whether as a small business owner, a freelancer, a consultant, or a temp job, it's a little tricky to get certain documents like proof of income and tax statements. It's even trickier to get things like car finance, because all financiers require these documents before lending. Unless you want to pay for a car in full, you're going to have to get around these document-related obstacles -- among other things. The good news is that being self-employed doesn't need to hinder you from getting a car loan or car lease. All it takes is a little know-how and you can turn that DECLINED to APPROVED:

 

Figure out your finances

There are a few questions you should be asking yourself when you need to figure out your finances. One of the most important is: How much spare cash do I have? The more spare cash you have, the larger your deposit can be, which in turn can reduce your loan-to-value ratio.

The next question you should be asking is:Are there any assets I can leverage? There is no reason why you can't multiply the productivity of something like a property you own or a mortgage you're paying off. Doing so basically tells lenders that you're relatively stable with your finances and are actually good at paying regular mortgage installments.

Another way to figure out your finances is by asking yourself "Do I have a good loan track record?" Especially for people who have businesses of their own, getting loans from the bank or any other financing institution is common. If you can show a good track record with paying off your loans for the last seven years, lenders will feel more comfortable entrusting you with a car or with money.

Last, question you have to ask yourself is "Do I have any defaults?" While you will find car finance in Brisbane, Gold Coast, Melbourne, and Sydney that will cater to people with defaults; getting car finance without defaults or, at least, paid defaults on your credit file will be much easier.  

 

Alternative Verifications

Businesses don't often lodge tax returns on a regular basis which makes a lot of car loans low doc or no doc. These types of loans are avoided by many lenders like the plague. This is why they look for alternative verifications to verify your income. One of these alternatives is your last 3 bank statements. If lenders can see that you at last have $500 to $1000 weekly income, your chances of getting approved are higher.

You also have to consider if you're looking for a vehicle to be used for business. In this case, you must have an ABN. This is the one piece of paperwork you cannot and should not skip. If you work for yourself and will be using a car for your business, make sure that you apply for an ABN before getting car finance.

 

Whether you're self-employed, a senior, or with defaults, getting a car doesn't need to be impossible. For a company that looks at your future and not your passed, choose Alpha Car Finance. Give us a ring today and we'll give you options to get the car of your dreams.