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Finding Self-Employed Car Finance

May 13, 2016

Finding a car finance deal when you’re self-employed can be frustrating, with a wealth of unique criteria making for a more complicated process – but getting approved for a competitive car loan doesn’t have to be a hassle.

The freedom and flexibility of car finance means you can buy your dream model without breaking the bank – but there are a few things to remember when it comes to car finance for self-employed applicants. In today’s post, we’ll be taking a look at the key questions business owners and contractors ask us when looking for a loan that suits their circumstances.

self employed finance

Why choose self-employed car finance?

While approval comes down to your financial situation and ability to make the repayments, car finance deals give eligible business owners and contract workers a means of buying the model they want at an affordable monthly rate. Using a loan to pay for your car means avoiding having to make a serious dent in your personal savings – and particularly when you’re self-employed, this is a huge benefit. Spreading the cost of the car over a series of manageable monthly repayments eliminates the stress of buying the vehicle up-front – but knowing exactly what you’ll need to get approved for self-employed car finance will help you secure a much better long-term deal.

How can you get car finance if you’re self employed?

If you’re self-employed and looking for car finance, it’s important to familiarise yourself with any specific criteria that could affect your chances of approval – as well as any documents you’ll need in order to give lenders sufficient peace of mind. We’d always recommend making the necessary preparations before you apply to accelerate the application process and bypass any potential roadblocks.

You’ll need to be able to provide proof of income (which should be going into a UK bank account) – and three months’ worth of bank statements is an easy way to do it. On top of this, you’ll also need your address history for the last three years, and will need to have resided in the UK for three years prior to making your application. Above all, lenders are looking for financially stable applicants – and the longer your business has been generating a steady monthly income, the better.

Does guaranteed car finance for self-employed people exist?

While promising guaranteed car finance isn’t legal, we work closely with lenders across the UK to source the best possible deals for the self-employed. Car finance will usually be a viable option, even if you’re suffering from a bad credit score. As long as you’re able to make your monthly repayments and have the paperwork to prove it, affordable car loans should be available to you.

self-employed-finance

If you’re ready to apply for self-employed car finance, you can do it right here. At The Car Loan Warehouse, we’re committing to helping each customer find a loan that suits them – with options given to 98% of applicants. If you’re still making your mind up, why not try our car loan calculator for an online quote before starting your application?

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About The Author

Jon Le Roux is co-founder and company director of The Car Loan Warehouse. Being a mad engineering and motorsport enthusiast, I spend more hours than is healthy, watching, reading or talking about cars, boats, motorbikes…..basically anything with an engine.