How to get a Self Employed Simcoe Car Loan with Ease
How to get a Self Employed Simcoe Car Loan with Ease
Posted on May 5, 2022
Are you self-employed and need a car? There has been a dramatic uptick in the number of Canadians that are self-employed. Working from home has made it easier to start your own business.
While there are many benefits that come with being your own boss, securing something as simple as a car loan in Simcoe has an added degree of complexity you would never face if you were working a traditional job.
Unpredictable income sources
One of the biggest challenges you will face as a self-employed borrower is generating enough income to pay your current obligations plus a new car loan.
Lenders need to know how much you are earning on a monthly basis, so they can determine what is the maximum car loan you can afford.
Lenders who do offer self-employed car loans will ask you for your latest bank statements and a copy of your income tax assessment.
The assessment is used to find out what your total income is and to make sure you do not owe the CRA any money.
The CRA is a big issue because they take priority over all other creditors, they can seize your assets and garnish your bank accounts for non-payment.
Credit challenges that face self-employed Canadians
The majority of self-employed Canadians use their personal credit card to pay for their business expenses.
The upside is you get to collect points and rewards, but this will also weigh down your credit score.
If you carry a balance on your credit card and lines of credit, it will increase your credit utilization rate and drop your credit score at the same time.
Lenders are aware of this and pay extra close attention to the borrower's credit report before approving any loans.
Now that you know about this, you should work on paying down these balances so prospective lenders will have one less reason to turn down your loan application.
The chronic shortage of lenders that provide self-employed car loans
Something that may shock you is the lack of lenders that are willing to provide car loans to self-employed Canadians, even though they are very responsible with their finances.
You will be hard-pressed to find a lender willing to give you a fair shake; what you need to do in this scenario is reach out to a local car dealership and get them to help you secure a car loan.
The dealerships have a database of lenders and can pick firms specializing in offering self-employed car loans.
Since the dealership has a working relationship with these lenders, they can secure terms that you would not be able to on your own.
We have covered the challenges that you will experience when trying to get a self employed Simcoe car loan.
You need to contact your local dealership right away and begin the loan process. Car prices are going to rise with inflation, so the sooner you begin the process, the faster you can drive home in your new car. Just remember the dealership is there to help you every step of the way.
Weād love to help you find an affordable self employed Simcoe car loan after divorce. Simply fill in the form below and weāll get back to you ASAP or see our selection of new and used cars at our Brantford dealership.Ā
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