What you need to know about self-employed car loans in Caledonia

What you need to know about self-employed car loans in Caledonia

Posted on August 25, 2022

Self-employed and in need of transportation? The number of Canadians who are self-employed has increased dramatically; working from home has made it easier to establish a business.

Being your own boss has its perks, but even something as easy as getting a car loan in Caledonia might be more difficult than it would be if you had regular employment.

Making dollars and sense out of erratic income

For self-employed people, one of the largest obstacles is making enough money each month to cover all of their other responsibilities, including a new car payment.

In order to figure out how much of a car loan you can afford, lenders need to know how much you make each month.

Lenders who offer self-employed auto loans will require a copy of your most recent bank statements and your most recent income tax assessment.

In order to discover how much money you owe the CRA, an assessment is carried out.

The Canadian Revenue Agency (CRA) is a major problem since they can seize your possessions and garnish your bank accounts if you don't pay your taxes.

Self-employed Canadians experience credit issues

The vast majority of self-employed Canadians use personal credit cards in order to pay for their business expenses.

Your credit score will take a hit because of the points and prizes you'll accrue.

Carrying debt on your credit cards and lines of credit will raise your credit utilization and lower your credit score simultaneously. A lender's credit report is a critical part of the loan approval process because of this.

Paying off these debts now will make it less likely that lenders may reject your loan application in the future.

Limited number of lenders willing to make loans to self-employed individuals for automobiles

Even though self-employed Canadians are known for their fiscal prudence, it may come as a surprise to learn that few banks are ready to offer them car loans.

You'll have a difficult time finding a lender ready to work with you, so your best bet is to approach a local vehicle dealership for assistance in obtaining a car loan.

Dealerships have access to a list of lenders from which they can select companies that specialize in providing auto loans to self-employed borrowers.

They can get you terms you couldn't get on your own because of the dealership's working relationship with these lenders.

You need to get in touch with your local dealership as soon as possible to begin the loan process for a self-employed auto loan.

The sooner you start the procedure, the sooner you can be behind the wheel of your new car.

The dealership is able to get you approved and show you how to repair your credit but you must make the first move and reach out to the dealership right away.

Contact Unique Chrysler for help, advice and competitive Caledonia car finance and leasing.

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