I am a self-employed, can I get a car finance?

If you’re self-employed you’re in that 16% of the total working population that earns its living in this way.

That’s a lot of people. But the self-employed have a hard time when it comes to raising a loan — despite the very high number of individuals involved. Many lenders are wary of the fluctuations in income often experienced by the self-employed and the fact that many may have less than a full set of accounts.

If a self-employed person is further handicapped by a poor credit rating, then raising a loan might be more difficult still.

So, if you’re self-employed as a driver, need to buy a car for your work, and have a poor credit history into the bargain, what chance do you have of arranging the car finance to buy that vehicle?

CarFinance Plus

The simple answer is that your chances are pretty good. Here at CarFinance Plus, we not only arrange car finance for a whole range of the self-employed, but also bad credit car finance and no deposit car finance.

It’s the exception rather than the rule when we need to turn down any self-employed applicant — even when a less than healthy credit rating is involved.

We specialise in just these situations — helping self-employed people with all types of financial issues, from bad or poor credit, defaulted payments, county court judgements or bankruptcies. We have a huge range of car finance products such as hire purchase, personal contract purchase, and personal loans. Any of these may be tailored for the self-employed driver.

What’s involved?

When you apply to us, we ask some basic information, such as your address, income and your accounts as a self-employed driver (if you have any). The application is immediately processed by our underwriting team, who then get in touch with you discuss the options for a competitively priced car finance deal.

That cost is based on a number of factors — such as the amount of the loan, the deposit or vehicle you offer in part exchange, the rate of interest, and your credit history.

To get a clearer picture of what any loan might cost, use our handy self-employed car loan calculator and apply to us today.

To help you still further, here are some of the FAQs we receive from self-employed drivers such as yourself.

I am a self-employed person. Can I get a car loan?

The answer’s yes. Even if you have a poor or bad credit history, we take into account your personal circumstances, accounts and other credit agreements you have. We specialise in vehicle finance for the self-employed who have bad credit, those who might have defaulted on previous credit repayments, had county court judgments (CCJs) against them, or even been made bankrupt.

Drawing on our extensive expertise and experience, we are then able to give you an answer in a matter of hours.

What credit score do I need to be approved for car loan?

No two applications are the same. So it depends on a whole range of factors. But we are specialists in arranging finance for the self-employed and for bad credit car finance.

The higher your credit score, the better your chances of landing a good deal, so anything above 600 points is a good place to start. Whatever the score, though, leave it to us to find the finance that suits you and your circumstances.

Can I get a vehicle loan with defaults or bad credit history?

Yes, car finance is available to you!

It can be difficult enough finding car finance if you’re a self-employed driver, but if you have defaulted on past loans or have a bad credit history it’s even more of a trial.

With our bad credit car finance deals, you just need to give us some evidence of your income (your self-employed accounts may be ideal if you have any), your bank statements and proof of your address. We weigh up all that information and complete the consideration of your application in a matter of hours.

Car I get a car loan and part exchange my old vehicle?

Offering your old car in part exchange is a great way of buying a new one. It saves you the hassle of disposing of the old car yourself and it provides an immediate deposit to buy a new vehicle.

Once you’ve found the car you want to buy, just get a part exchange quote from the dealer, make your application to us and we aim to arrange finance on the difference between the cost of the new vehicle and the old car’s part exchange value.

Our car finance calculator helps you find out the amount you need to pay in monthly premiums and the number of repayments that have to be made.

But don’t despair if you have no car to offer in part exchange. We are also specialists in arranging zero deposit car finance.

What paperwork will you require to get my car finance approved?

Who likes paperwork? We aim to keep it to the barest minimum. Typically, we are likely to ask to see:

  • recent bank statements;
  • proof of income;
  • two years of your self-employed accounts (if you have them);
  • a copy of your passport;
  • proof of your address; and
  • if you are a homeowner, we sometimes ask to see proof of that property ownership.

That’s all we require to process your loan application and, once it is approved, to transfer the required funds directly to your car dealer, so you are ready to drive it away in just a matter of days.

What car loan products are available for a self-employed application?

As a self-employed driver, you might be interested in any number of the products we specialise in — personal loans, hire purchase agreements, personal contract purchase (PCP), bad credit car loans, guarantor loans (if your credit score is especially low, say), and no deposit car finance.

It’s a simple question of deciding how much you are able to repay each month, get an obligation-free quote from us, make your application, and we process it all within a matter of hours.

Can I get a guarantor loan as a self-employed driver?

Having a guarantor to make the monthly payments if you default on them, might make all the difference in securing the finance you want — especially if your credit rating is especially poor.

Once approved, the funds are released to the guarantor — who releases them to you — but you are still responsible for making the repayments each month. And it is your credit record that is affected if you default.

Can I get a self-employed car finance for a commercial vehicle or van?

The simple answer is yes — our self-employed vehicle loans may be used to buy cars, vans, light commercial vehicles, motorbikes and even motorhomes.

Thousands of happy customers

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