Top tips for getting car finance if you’re self-employed
Car finance deals if you're self-employed
by Abi Moses on 14th July, 2017
We at Car Finance Deals often get asked about car finance and self-employment, so it is well worth us dedicating this blog post to answer many of the regular questions with regards to this subject.
Following the recession in 2009, we at Car Finance Deals are aware that many people have chosen to be self-employed. According to the Office of National Statistics in 2014, self-employment was at its highest point in the past forty years. Additionally, in 2014 4.6 million people were deemed as self-employed in their primary job.
So, we as car finance specialists have put together a list below of what dealers often look for when contracting a car finance deal when the customer is self-employed.
· The customer is always asked to provide proof of income through 3 months’ worth of bank statements.
· Although dealers will never accept tax returns as proof of income.
· They may also ask to see three years’ worth of employment history.
· They might require 3 years’ worth of address history. This includes the fact that you must be a UK resident for at least 3 years before financing a car.
· According to the information you provide, they will total the income in the last 3 months and divide this by 3 to get an average income and set a credit limit according to this result.
· Although dealers won’t be able to take hand payments as a variable income. It must go through a UK bank account in the name that is on your UK ID.
· Lenders always like to see stability in an address and employment so that they can guarantee you will be able to provide regular payments.
As long as you can provide the information above, you shouldn’t hit a problem with regards to financing a car whilst being self-employed.
Have we helped you out today? Why not get in contact with Car Finance Deals Ltd for your quote on financing a car, paying in manageable monthly instalments which are convenient for both you and your family.