Guide to Port Dover Car Loans when Self Employed
Guide to Port Dover Car Loans when Self Employed
Posted on January 25, 2022
Self-employed Canadians that want to buy a new car will need to ask themselves a series of important questions. Our auto loans team outlines a few great tips on finding Port Dover car loans when Self Employed.
Can you afford a new car?
Car prices have been climbing since the onset of the pandemic, and inflation has also reared its ugly head. Inflation has caused the prices for food, fuel, housing, and just about everything else to climb.
So, you will need to factor inflation into your budget when trying to determine whether you can afford new Port Dover Car Loans when self employed.
The average car payment is around $500-$600, which does not include insurance and maintenance.
Compile a list of all your debts and income. If, after running the numbers, you do have funds leftover, you will know whether you can afford a new car.
One of the challenges that self-employed car buyers face is income consistency. Lenders are also going to focus on the stability of your income. When you apply for a car loan, the lender is going to look over your banking statements, which will provide you with insight into how much money is coming in.
Having good credit is key
Something that makes all the difference when trying to get a self-employed car loan is your credit score. Lenders want to minimize their risk, and one way of doing that is by only giving loans where the lenders are likely to repay the debt in full.
Credit scores provide unbiased insight into whether you are financially responsible.
The credit score needed for a prime-interest rate is 700. This requirement may change depending on the market, but if your score is over 680, you should be alright.
Review your credit score by using apps like Credit Karma and Equifax. If your credit score is low, you can get a self-employed car loan, but you will need to start rebuilding your credit.
Causes of low-credit scores
There are many possible reasons why your credit score is low. One of the most common is having accounts go past due. If you miss a payment, even if it was for something small like $10, your credit score will drop 10-20 points! Miss a few payments, and your credit score is on the verge of subprime.
You need to always may your payments on time, without fail. If you stick with the goal of never missing a payment again, your credit score will rise.
Getting the help you need
When you are self-employed, you try to do it all and end up with very little time to do things like shop around for a great car loan.
There is help available. Call upon your local car dealership. They can source for the most competitive car loans based on your financial snapshot. The dealership has cars in their inventory that you could start test drive.
Buying a new car is a major milestone, and if you go through a local dealership, you are going to save money and still get the vehicle you need. The sooner you do contact the dealership for help, the happier you will be.
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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