Self-employed Canadians who need a car loan have options available. There are some important things you must bear in mind if you want to get a fair shake. We’ll explain how to get a great self employed car loan in Lincoln Ontario.
Most Canadians are under the impression that being an entrepreneur is great. You are your own boss and can do things however you like.
While being self-employed does provide certain benefits, one of the biggest challenges is being able to secure financing for big ticket items like cars.
What is the structure of your business?
A question we need to address before we can move ahead with helping you find a suitable car loan is asking whether your business is incorporated or sole proprietorship?
If you are incorporated, the process for getting a car loan is fairly straightforward.
We are going to focus on how to get a car loan when self-employed.
Having all of your financial ducks in a row
Your finances are going to be under intense scrutiny; as a self-employed borrower, you are going to face more challenges than a borrower who is working a conventional 9 to 5 job.
The first thing you need to present is your financial statements that show your overall financial health.
You will need to prepare additional documents including your income tax assessments and bank account statements; lenders want to determine how much money you are earning every month.
If you do not have these documents, you should start getting them ready now.
Is your credit up to snuff?
Your credit score plays a critical role in whether you are able to secure a self-employed car loan.
The median credit score in Canada is 660; you will need a credit score over 720 if you want to get the best possible interest rates.
Therefore, you need to be proactive and deal with any credit challenges you may have by paying down your debts and making sure your payment is on time.
The economy has changed dramatically since the onset of the covid-19 pandemic.
Lenders are now more cautious when issuing car loans in Lincoln.
What makes the loan underwriting process more challenging is inflation. The Bank of Canada is battling inflation which is the highest it has been in a generation.
Higher interest rates mean it will cost you more to service the debt but what makes this situation more challenging is the asking price for new cars has jumped up due to inflation.
Where to get the best self-employed car loans in Lincoln
If you are serious about buying a car, then you will need to seek out the best self-employed car loans in Canada.
The best source of these loans is by going through a dealership that is in your area. The dealership has access to lenders specializing in providing self-employed car loans and can help you even if you face credit challenges.
What you need to do is contact the dealership today and find out what options are available to you. You are going to have an amazing experience with the dealership, but you need to make the first move.
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!