How to get a Car Loan for Work in Kitchener

How to get a Car Loan for Work in Kitchener

Posted on May 2, 2022

If you need a car loan for work in Kitchener, there are some options available. We're going to show you how to find a competitive loan and save money in the process.

Are you using the car for work, personal use, or both?

We need to ask whether the car is being used for work, personal use, or both.

If you are using the car for your job, perhaps you are working as an Uber driver or Door Dash, then you can write off certain expenses that come with running the car.

How long have you been self-employed?

There was a requirement of being self-employed for at least two years before you can secure a self-employed car loan.

This is no longer the case, as some lenders have adjusted their underwriting processes to help self-employed borrowers access the loans they need in a timely manner.

The biggest factor that impacts your ability to access a self-employed car loan in Kitchener is your credit score.

Do you know your credit score?

There are free apps from TransUnion and Equifax which gives you access to your credit score; you should sign up for both and keep tabs on your credit score.

Understanding your credit score

Once you have access to your credit report, see if there are any accounts that are past due or in collections?

You need to stay on top of your obligations and never let them get into that situation. Your payment history directly impacts your credit score, so missing a single payment will knock down your credit score.

One way to avoid missing payments is by signing up for preauthorized payments, so they are taken out automatically.

Can you afford a new car payment?

Do you have a budget? If you do not, why not start working on it now!

A car loan can last up to 84 months, so you need to make sure you have sufficient room in your budget to service that debt.

Most lenders use a debt-to-income ratio when determining whether to approve a loan; based on our research, the maximum DTI ratio is 40%, so the odds of your loan being approved will increase if you are below that ratio.

How to find a great self-employed car loan in Kitchener

When searching for the best self-employed car loan in Kitchener, you should reach out to a neighborhood car dealership.

The dealership has helped a variety of self-employed borrowers just like you, so you will have peace of mind knowing everything is going to be done right.

There are lenders that offer self-employed car loans, but they do not actively advertise online, so you will never be able to find them on your own.

The dealership has relationships with lenders that specialize in this type of financing, even if you have credit issues.

Do not let anything hold you back; if you have a stable income and need a car, the local dealership will be able to help, but you have to make the first move and contact them.

We’d love to help you find a well priced car loan for work in Kitchener. Simply fill in the form below and we’ll get back to you ASAP or see our selection of new and used cars at our Burlington dealership. 

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