Need a Car Loan as a Freelancer in Ayr?
Need a Car Loan as a Freelancer in Ayr?
Posted on March 5, 2021
The world of freelancing and gig work has exploded over the past few years. With digital infrastructure improving all the time and an increased dependence of software and apps, it is now possible to work from anywhere. That’s great as a lifestyle but can prove problematic when you apply for a car loan in Ayr.
If you’re a freelancer or gig worker, how do you go about getting a car loan?
It’s not as difficult as you might think!
car loan as a freelancer or gig worker
Whether you’re a contractor, delivery driver, ride share driver or something else, you can still access auto loans in Ayr. It just takes a little more work.
Your main challenge is proving your income and balancing the needs of being tax efficient with showing the highest income possible.
Let’s take the second point first. Most self employed people will claim as much as possible back at tax time to minimize their tax bill. This is one of the perks of being self employed. You are legally allowed to claim legitimate expenses and most accountants will actively help you do that.
The problem comes when it’s time to apply for credit. By being tax efficient, you’re minimizing your income. This will work against you when it comes time to apply for your Ayr auto loan.
Somehow, you have to find a balance for at least the year before you’re planning on applying for a car loan to maximize your income. Otherwise, lenders may not think you can afford the loan.
Proving income as a freelancer or gig worker
That first point is equally important but easier to manage. For most auto loans in Ayr, you can prove your income with bank statements and your latest tax return (that second point).
You have to prove you have a steady income that is enough to repay the loan. Two key terms there are steady and enough. Freelancers and gig workers don’t always have steady income. If you’re one of the lucky ones, you’ll have no problem qualifying.
If you’re not, you have to keep detailed records of all your income and use that to prove you can afford the loan.
You will typically need:
- Your latest tax return
- 3 months bank statements (some lenders require more)
- Any supplemental paperwork demonstrating steady income
- Proof of other income from rents or investments
The more work you do to prepare your loan application, the faster we can secure you a loan.
Just because you approach work life differently, it doesn’t mean you have to approach anything else differently. If you can afford an auto loan and can prove you can afford it, we should be able to get you one. It takes work, it takes proof but it can be done.
When you’re ready for an Ayr auto loan, visit your nearest Car Nation Canada dealership. We will be able to help.
Contact Unique Chrysler for help, advice and competitive Ayr car finance.
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