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How to get approved for car finance for the self-employed

By: alphafinance0 comments

Everyone has dreamed of becoming their own boss. That’s why a large number of people have ventured into self-employment. Some have even established their own businesses.

The experience itself is liberating, and it offers its own set of perks. However, it also makes certain things a bit harder, like car finance.

That’s because car finance is designed to suit the working class and not the self-employed. But that does not mean that if you’re self-employed, that you won’t be able to get the lease for yourself.

To successfully apply and get approved for car finance, you must first be able to answer these questions positively:

Will you use the vehicle for your business?

If you’re looking to work as a tradie who needs to a ute or a vehicle to get him from venue to venue, then a car lease will work wonderfully. However, you will need an ABN before you can even consider applying for car finance.

Have you lodged a tax return?

Businesses usually fail to lodge tax returns regularly. That means any loan that you take out will be a “low doc” or “no doc” loan. It is very rare to find a lender willing to give you such a loan because of the risks involved. That is why it is essential to know more about other ways you can verify your income.

Some of these alternative ways include bank statements through which clients pay you and other similar paperwork. It should help your case and show you in a better light to lenders.

Are your finances in good condition?

Once you have all your paperwork in order, the next thing you want to do is make sure you have enough money for the down payment. Aside from the money in the bank, you also need to make sure that you have a clean record.

That means no defaults within the last 10 years or so, and your record should show that you pay your bills on time. Your mortgage payments will be an excellent supporting document for this.

When everything is said and done, and your dealer liked what they saw on paper, then you should be able to drive away in your new car within the next few days.

A great place to apply for one is Alpha Finance, where they make sure to put your financial situation in mind when coming up with your payment plan.

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