We can provide finance for people who have had difficulties obtaining credit in the past,
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Getting car finance whilst you are Self-Employed

Posted on 10/08/2016

Many people have chosen to be self-employed and more so since the recession in 2009. In 2014, the Office of National Statistics released figures which showed that self-employment was at an all-time high since records began, with 4.6 million people working for themselves.

However being self-employed shouldn’t prevent you from getting car finance. It is true that it may be a little more complicated than if you were employed but the process will be straightforward if you have all of the necessary documents.

One of the main things you will have to do when applying for car finance whilst you are employed is to prove your income. The majority of lenders will require at least 3 months bank statements to prove your income. This is to see that your income is regular and you will be required to do this whether you have good or bad credit due to regulations by the Financial Conduct Authority (FCA). This is to ensure that the customer can afford the repayments and if they can’t demonstrate this then they will be seen as a high risk by the lender.

If you can’t prove your income there are a couple of things you can do to improve your chances of being accepted for car finance. Firstly, make sure your credit file is up to date and accurate. Secondly, make sure you are on the electoral register. This makes it easy for lenders to determine your identity and trace your address.

Road markings pointing to different directions

The type of employment will also affect your application. If you are a self-employed taxi driver you will not be able to take out car finance where the vehicle would be used for work purposes. This is because the car will travel many more miles compared to ordinary use and this means the value of the car will decrease at a much more rapid rate.

Another way to increase your chances of approval are to put down a deposit where possible – and the bigger the deposit the better. Not only will this increase your chances of acceptance, it will make your monthly repayments smaller. If you are able to use a guarantor or complete a joint application with someone who has very good credit, and is a homeowner, then this will also reduce the risk you are to the lender.

If you have bad credit and are looking for self-employed bad credit car finance, you may find it more difficult and have limited options. This doesn’t mean it is impossible! Check out our post on bad credit car finance for more information.

Registered with Information Commissioners Office ICO Registration Number: ZA132327

UK Car Finance Limited. Registered in England
Registered number 9397657.
Registered Office Lakeside House, 30 Northumbrian Way, Newcastle Upon Tyne, NE12 6EH

Refused Car Finance is a trading style of UK Car Finance Limited and is acting as a licensed credit broker and a lender, we are authorised and regulated by the Financial Conduct Authority, registration number 714966. All finance is subject to status and income. Applicants must be 18 or over, terms and conditions apply, guarantees and indemnities may be required.

Written quotations on request. Certain exclusions for NI residents.

Note: We cannot be held responsible for specification errors, and price errors, we use Motortrade software which is not always 100% accurate. Copyright 2017 Refused Car Finance.

Refused Car Finance can introduce you to a limited number of finance providers based on your credit rating and we may receive a commission for such introductions.

*Representative Example
Cash price – £8,500.00, Deposit – £0.00, Amount of credit – £8,500.00, Rate of interest – 16.24% per annum, Amount of interest – £6,912.00, Lender Documentation fee – £0.00, Lenders option to purchase fee – £10.00, Total charge for credit – £6922.00, First repayment – £256.70, Followed by 58 Monthly repayments of – £256.70, Final repayment – £266.70, Total amount payable – £15,412.00, Representative APR – 29.9%

*Last month, over 51% of Refused Car Finance customers that had their loan arranged were offered an APR of 29.9% or lower

In the first 3 months of this year, UK Car Finance Ltd received 2140 unique applications, of which we were able to offer 2136 applicants a line of credit, subject to the applicant being able to provide acceptable proof of affordability, being free from insolvency and or/a supporting guarantor fitting the lenders eligibility criteria, this represented 99.8% of applicants in this period.

Rated No.1 for car finance in the North East of England collated from Google Business Reviews