Can You Get A Car Loan If You Are Self-Employed?

If you are self-employed but in need of a car loan, you might be wondering if there’s a way you can apply. Those who are self-employed often run into issues with proving their income is stable. Without payslips, many lenders see someone who is self-employed as a risk. If this sounds familiar, you might try applying for a low doc car loan.

A low doc car loan is pretty similar to a regular car loan, except you won’t need to supply as many documents. Many people who are self-employed find that low doc loans are a much easier way to get funding.

Read on below to find out more about low doc car loans.

Can you get a car loan if you are self-employed?

If you are self-employed, you may still be able to get approved for a car loan. However, depending on how much documentation you are able to provide, your loan type may need to be a little different. A low doc loan could be a good option if you are self-employed and cannot provide the usual documentation such as payslips and proof of income. There are many options available to those who are self-employed and are in need of a car loan.

Can you use your car for your business?

If the car that you are looking to purchase will be used more than 50% of the time for business purposes, you should be able to purchase it as a business car. This means that you may be entitled to claim some costs associated with the vehicle on tax and that your company could own the car and be responsible for the repayments.

However, if your car will be used less than 50% for business purposes, the typical car loan process would have to be followed. The car loan would be in your personal name, and you would be responsible for making the repayments and the upkeep.

Low doc car loans

Like all loans, your credit score might impact whether or not your loan application is approved.

If you do have bad credit, your lender may require additional paperwork to prove your income. However, this can prove difficult if you are self-employed. You might not have the traditional income documentation, such as payslips. That’s where you might find a low doc loan helpful. Low doc car loans involve using less documentation than normal. Generally, you will still be required to prove your identity.

These type of loans are generally suited to those who don’t earn a regular income, who are sole traders, the self-employed, and contractors. Some lenders offer low doc car loans for both personal and business use. This may prove helpful for someone who is self-employed and uses their car as their business vehicle and personal vehicle.

How can you apply?

In the case of a low doc car loan, you may not need to supply as much as you would if you were to apply for a traditional loan. While each lender may have differences in what they will need to see, generally, you may be asked to provide:

Personal details such as your name, address and proof of your identity. These can usually be provided in the form of your licence or passport.
Bank statements of any accounts in your name, and personal tax returns
Your ABN number
The value of the car you are wishing to purchase
If the car will be used as a business vehicle, your lender may need to see financial records relating to your business.

Where does Tiger Finance come in?

To us, you are more than your credit rating. We have helped countless Australians with both good and bad credit ratings to be funded for their dream car. The lending criteria from other lenders can be unfairly strict when you have bad credit, and it can hold you back.

With Tiger Finance, we can help to get you a loan in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved.

How we can help

Tiger Finance is here to help you to get your dream car regardless of your credit score. We can make the process simple and pain-free. If you’re ready to drive away in your new car, call us today for your free initial consultation with one of our loan specialists.