The pandemic has forced a significant number of Canadians to give up their 9-5 jobs and start their own businesses.Now the struggle is getting a car loan as an entrepreneur.
Transitioning from being an employee to an entrepreneur can be exciting, but there are some important changes that you must familiarize yourself with. One of them is the way you go about getting financing.
That’s why our Welland auto loans team are going to cover all of the major items that you need to keep in mind.
Car prices are dramatically higher
Something that you need to understand from the get-go when finding a car loan as an entrepreneur, is car prices are dramatically higher now than they were before the onset or during the actual pandemic.
As the economy is transitioning from survival to a new normal, there are a host of variables that impact car prices.
Limited manufacturing capacity due to supply chain bottlenecks throughout the world.
These shortages are not due to the protests in Ottawa or even the war in Europe, but these issues do have an impact on the global supply chain in their own unique way.
With rising car prices, you will need to dig deeper into your pock to cover these inflated prices. In addition, inflation is also driving up all of your costs, including labor costs if you are running a business.
All of these added expenses mean you must either increase your income or cut costs to remain competitive.
Documenting your income may be a challenge
As an entrepreneur, one of the biggest challenges you will have is documenting your income.
Lenders want to know if your income is predictable and how much per month you are bringing in.
In addition, as a business owner, the lender will ask for your bank statements for the last year and your income tax notice of assessments.
Without these documents, you cannot get your car loan approved, so you should get them ready right away.
Some other documents that can help your case are contracts that are signed between you and your clients.
By showing the lender you have these contracts in place, it can allay their concerns about whether you can repay the loan as agreed.
The lenders are also going to carefully scrutinize your credit score to make sure you meet their underwriting requirements.
Usually, self-employed borrowers have to jump through more hoops than a person working 9-5; it is nothing personal; the lender is just not properly set up to process self-employed car loan applications.
How to find competitive self-employed car loans in Welland
Suppose you want to find the most competitive car loans for self-employed Canadians, contact your local dealership.
In that case, they will find the best deal for you based on your finances. These dealerships know all of the lenders in Canada, including those that focus on giving loans to self-employed Canadians.
As a result, the dealership can negotiate a good deal and find you the perfect car at a great price.
As a self-employed Canadian, you can buy a new car, but you should enlist the help of your local dealership to help make the entire car buying experience as conducive as possible.
Click here to get approved for your next car loan online today! we have a team of credit specialists ready to help you find a vehicle suited to your needs and will work with you no matter your credit score.
For any questions or concerns, please don’t hesitate to contact us here!