It wasn’t that long ago that car loans for contract workers, freelancers, or gig workers was near impossible to accom. Fortunately, things have changed and you now have the same access to car loans as standard employees. You may have to work a little harder to qualify though.
Our Simcoe car loan team explains how to get car loans for contract workers, seasonal workers, freelancers or gig workers. To save writing all that throughout this post, we’ll just call you all contract workers. We hope you don’t mind.
Proper preparation prevents…, you know the rest right? It’s the same for car loans. Proper preparation should prevent a failed car loan application.
Everyone has work to do preparing for a car loan but contract workers have more to do to prepare for a loan.
Your main challenge when applying for a car loan is proving that you can afford it. That you have a steady income and are likely to have a steady income going forward.
The nature of contract work means you could have more work than you can cope with one week and then nothing the next. Lenders know this and will need reassurance that your income is steady enough to be able to repay the loan.
Proving income as a contract worker
You have a few options at your disposal as a contract worker to prove income. You can use tax returns, business bank statements, any contracts you have signed and any official paperwork that proves ongoing work or paints a picture of steady, reliable income.
We tend to recommend overwhelming a potential lender with evidence. You’re much better off giving them as much evidence as possible proving you can afford the loan than leaving them with questions.
As Simcoe car loan experts, we recommend providing:
Your latest tax return
The preceding 2-3 years tax returns
3-6 months’ worth of business bank statements
Any formal contracts or work agreements showing income or future income
While this won’t guarantee being accepted for a car loan, if this evidence paints a picture of someone who works regularly, has a steady income and is making contract work pay, you’ll stand a good chance of being accepted for the loan.
You will, of course, also need a down payment and good credit score but that’s the same for everyone who applies for a Simcoe car loan!
If you have all that and it’s still insufficient or you cannot prove income enough for a car loan, you still have options.
- You could borrow less or use a large down payment
- You could use a co-signer to guarantee the loan
- Or you could opt for a secure car loan
What option works best for you depends on your situation but we can help you decide which offers the highest chance of success.
Car loans for contract workers now have the same access in Simcoe as anyone else. That’s not to say qualifying is easy but, with the right approach it is definitely possible!
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!
For any questions or concerns, please don’t hesitate to contact us here!