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How to get a Simcoe Car Loan when Self Employed

How to get a Simcoe Car Loan when Self Employed

Posted by on Apr 12, 2022 - Archived under Uncategorized

If you want a Simcoe car loan when self employed, there are many obstacles you will need to overcome before you can drive home with a new car.

 

Our goal is to provide you with the information you need to navigate the self-employed car buying world.

 

Is your business incorporated or sole proprietorship?

 

Qualifying for a car loan with an incorporated business is much easier than a sole proprietorship.

 

If your business is incorporated, then lenders will treat your application like someone who works a traditional 9 to 5 job.

 

Applicants who are sole proprietors are treated much differently and will face the greatest number of challenges.

 

How to get a car loan as a sole proprietor

 

Lenders want to know if your income is sufficient and stable enough to service your current obligations plus the new car loan.

 

The way that lenders substantiate your income is by asking you for your income tax assessments for the previous two years; if you are able to provide more than two years’ assessments, it will help substantiate your income.

 

Prospective lenders will also need to look at your bank statements for the last year.

 

The pandemic has taken a heavy toll on Canadians from all walks of life; the bank statements are going to show how much cash is coming in and going out of your business.

 

If you can provide these documents, then you are one step closer to realizing your dream of getting your car loan approved.

 

The importance of having a great credit score

 

As an entrepreneur, you are constantly trying to balance the challenges of reinvesting capital into your business and still paying yourself.

 

Your credit score is going to impact what car loan options are available to you.

 

Even if you have great income, you will need a credit score over 680 to access Canada’s most competitive interest rates.

 

The Bank of Canada has recently increased the prime lending rate, lenders have increased their rates to follow suit.

 

To access the best interest rates, you need to have a high credit score, or lenders are going to use it as a reason to charge you a higher rate.

Since these lenders are under immense pressure to hit their sales objectives, they will look for any valid reason to increase their revenue per loan, especially with the limited number of car loans that are available.

 

The best source of a Simcoe Car Loan when Self Employed

 

If you are looking for the best source of self-employed car loans in Canada, your best option is going through a local dealership.

 

The dealership has access to lenders throughout Canada; most of these lenders only work with dealerships, so you would never be able to find them online.

 

The dealership will also help you find the perfect vehicle for your needs and budget; this top-notch customer service is something you cannot find anywhere else.

 

By following these suggestions, you will be able to get a new car at an interest rate you can live with, so contact your local dealership right away.

 

Fill in the form below to get approved for a Simcoe car loan when self employed 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! 

 

Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!  

 



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