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Securing auto financing for your start up business: things to keep in mind

Securing auto financing for your start up business: things to keep in mind

If you are an entrepreneur or thinking about starting your own business, one of the first things you will need to consider is how you will purchase your first company vehicle.

Automobile financing for entrepreneurs in Canada can be complicated, especially if you are not sure what steps to take.

Our Georgetown car loans team are going to show you how to access this financing and what you need to do to get a great deal.

Understanding the mindset of prospective lenders

You need to put yourself in the shoes of the lender, so you can understand why they are asking you the questions they do for these loans.

The first thing that the lender wants to know is whether you are able to keep your financial commitments, and the only way they can do that is by looking at your credit score.

Credit scores in Canada range from 350 to 800; if your credit score is over 720, you will have no issues accessing the most competitive terms out there but don’t let a low credit score dissuade you from moving forward.

After the lender has assessed how responsible you are with your money, the next thing they will look at is how much cash you are bringing in.

Being self-employed, your income can be erratic at times

To address the legitimate concerns these lenders have, you should print up your bank account statements for the last 12 months.

Also, provide contracts you may have with your clients. This can serve as evidence that your business is real and the income will be consistent.

Picking the right vehicle for your business

What is the nature of your business? Are you involved in delivering goods and services? If you are on the road all the time as part of your business, then you should consider getting either a hybrid or an EV.

Gas prices are climbing, and you should do yourself a favour by removing gasoline from the equation and opting for an EV.

The good news is you can write off a significant portion of the costs that come with operating a vehicle for your business with the exception of the actual car payment; you can write off the interest, though.

Where to find the best entrepreneur car loans in Georgetown

Websites talk about the great deals available online, but you need a local expert who will do whatever it takes to get you approved. Your local dealership should be your first choice when trying to get approved for a car loan.

The dealership has assisted other car buyers just like you and will be able to get you approved even when other lenders have turned you down.

You need to head over to the local dealership today and get the process going before interest rates rise again and you are forced to pay more to service the car loan.

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

Categories: Car Loan

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