Self Employed Car Loans In Ontario: How To Get Approved

We will show you how to get an affordable self-employed car loan in Ontario.

The pandemic has caused a seismic shift in the Canadian economy. Individuals who lost their jobs are electing to start their businesses instead of going back to their 9-5 jobs.

While being self-employed does provide you with a greater sense of autonomy. There are several challenges associated with it too.

One of the biggest challenges you will face is being able to access financing.

Self Employed Income is Harder to Prove

When you had a 9-5 job, getting a car loan was pretty straightforward, you gave a copy of your pay slip, signed some papers, and you got your car.

However, with self-employed car loans, you need to provide a substantial amount of documentation, and you still may not be approved.

Your credit score is one of the first things that the lender is going to look at, and you will need a 700 credit score if you want to qualify for preferred interest rates.

Most self-employed Canadians will put their business expenses on their credit cards.

This is one of the primary reasons that self-employed Canadians have lower credit scores than their full-time employed peers.

Even when your score is over 700, the income verification process for self-employed borrowers is cumbersome at best.

If your credit score falls below 700, you can still get an affordable car loan when self-employed Mount Hope. However, your interest and borrowing costs are going to be higher.

How to Prove Your Income

The lender is going to need access to your bank statements for the last year. Don’t be surprised if the lender wants to see your income tax assessments with your banking information.

If you owe the government money, the lender will treat that as an immediate red flag and reject your loan application. Another reason why the lender is asking for the income tax documents is to confirm you are declaring all of your income.

If you have all of the documentation needed to meet the income verification process, it doesn’t mean you are in the clear. There are not enough new and used cars to go around, so now would be a great time to make a list of what features and functions you want in your car.

If you are not able to find the car you want, you could either wait for the car to be made and delivered or buy a used car. In either situation, you will need to make tradeoffs.

Finding The Best Self-Employed Car Loans

You have the option of going through lenders that advertise online. This is not the best course of action for you, though. The lenders that you find online will not be able to match the interest rate or deal being offered by a local dealership.

The local dealership will also be able to give you a level of personal attention that cannot be found online. We have shown you how to access self-employed car loans; the onus is now on you to schedule a test drive.

We will use all our skills and experience to deliver the lowest possible Mount Hope auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.

If you're ready for a car loan in Southern Ontario, we'd love to help! simply fill in the form below to get started.