Finding your First Car Loan when Self Employed in Paris
Finding your First Car Loan when Self Employed in Paris
Posted on January 19, 2022
The number of Canadians who identify as self-employed is growing. However, getting a car loan when self employed in Paris requires additional paperwork from your end.
The economy has evolved from a person working with the same company for most of their life to a “gig economy.”
Unfortunately, lenders have not modified their underwriting processes and try to use an old-school approach to a modern system .
Prospective car loan providers want to know how much money you receive every month. They need this number to calculate the maximum loan you can service based on verified income.
When trying to find a car loan when self employed in Paris, Canadians will need to provide their banking statements for the last 12-18 months. They will also need to provide their income tax statements.
How good is your credit?
Once the lender has reviewed your income, the focus will shift to your credit score.
In Canada, there are two credit reporting agencies, TransUnion and Equifax. You should keep track of your credit score for free by signing up for both services.
TransUnion may have you at a 700 and Equifax could have you at 650. The difference in scores could impact your borrowing costs!
There are many reasons why the scores could be different, but we are going to show you how to keep your score as high as possible.
Your payment history has the most profound impact on your credit score. We cannot stress how important it is to always make your payments on time. Even missing one payment will bring down your score.
The sheer amount of debt you are carrying will bring down your credit score. Industry experts recommend using no more than 30% of your available credit.
Stay away from credit repair offers online. These are your modern-day snake-oil salespeople. There are no shortcuts when trying to repair your credit. Instead of wasting money on these services, you should put it towards paying down your debt.
What type of car are you buying, new or used?
If you have good credit, you may qualify for zero percent (0%) financing even though there is a chronic shortage of cars in the country. This zero percent may only be specific car models, so you need to discuss that with the salesperson.
The interest rates on used cars is usually higher than what you would pay on a new car. So, if you are planning on buying a used car, then you will need to shop around.
A great way to access the most competitive car loans in Paris is by going through a dealership in your neighbourhood. These dealerships have direct access to wholesale lenders who will give you a better interest rate than what you could find online.
The dealership will have an inventory of new and used cars that you can choose from. Being self-employed provides you with the freedom to work on things that you are passionate about.
Now that you know how to get car loans for self-employed Canadians, you should head on down to your neighborhood car dealership.
When you’re ready for a car lease or loan, get in touch with the Paris auto loan experts at Northway Ford for great deals on auto finance.
We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP!
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