388 King George Rd, Brantford, ON, N3T 5L8
My Garage

How to Buy Your Company Car: A Quick Guide

How to Buy Your Company Car: A Quick Guide

A growing number of Canadians are starting their own businesses in Glen Abbey. The pandemic has demonstrated that “job security” is not something we have in our modern economy.


Whether you drive to your job or drive for your own business, you need a reliable vehicle.


One of the biggest challenges self-employed Canadians face is being able to access financial services at competitive interest rates.


This is why our auto loans team has come up with this article. To help you navigate the world of auto financing for self-employed borrowers, and easily buy a company car in Glen Abbey.


Fitting a Round Peg Into a Square Hole

The majority of main street car loan providers are set-up to provide loans to people who work a traditional job. These borrowers have a simple income stream that is relatively predictable.


When a self-employed borrowers applies for a loan to buy a company car in Glen Abbey through one of these lenders, the first thing the lender wants to know is how much money are you making and do you get paid consistently?


With an employed applicant, all an individual needs is their latest pay slip for income verification.


Self-employed borrowers do not have a salary slip so the lender will want to look at is your income tax notice of assessments and your bank statements for the last year.


The lender will be able to calculate what is your average monthly income. Along, with calculating your average monthly income, the lender can gain insight into the stability of your business.


Credit Score Requirements

When you buy a company car, prospective lenders will also want to look at your credit score to try and determine whether you are a prime or sub-prime borrower.


To qualify as a prime borrower, you will need a credit score over 700. The higher your score, the easier time you will have securing a low-interest car loan.


Most self-employed Canadians use their personal credit card for business expenses which is fine, but if you are carrying a large balance on your credit cards, it will bring down your credit score.


Where to Find Self-Employed Car Loan Providers

Resist the temptation to try and find lenders online. You will see advertisements that say “self-employed car loans” but the websites that are advertising these loans are not able to get you competitive rates.


The most effective way to get a competitive auto loan is by working with a local car dealership.


Your local car dealerships have an extensive network of lenders that offer self-employed car loans, The dealership is able to secure loans that you cannot access elsewhere. Plus, if you are facing any credit challenges, the dealership can help give you practical advice.


In Canada, we need a car to lead a normal life. Now that you know how to access these self-employed car loans, you should pick up your phone and reach out to your local dealership today.


Interest rates are poised to rise any time, and it would be a shame to get hit with a higher interest rate because you delayed contacting the dealership.


When you’re ready for a car lease or loan, get in touch with the auto loan experts at Northway Ford for great deals on auto finance.


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

Categories: Car Loan

Tags: ,