How To Get a Car Loan If I'm Self Employed | Andy Mohr Speedway Chevy

When it comes time for auto shopping, there are several ways to go about financing a new car. One great option is seeking out a car loan. However, self-employed individuals in Indianapolis, Fishers, and Carmel may be wondering if they are able to obtain a loan for their next vehicle.

The answer is yes! In this guide, we at Andy Mohr Speedway Chevy will give you a detailed overview of what the car loan process will look like if you’re self-employed. Read ahead to learn about credit, how you can prove your income, and what you’ll need to secure your loan!

HOW CREDIT AFFECTS SELF-EMPLOYED CAR LOANS

No matter who you’re employed by, be it yourself or a company that you work for, your credit will significantly affect your ability to secure your next car loan. In fact, your ability to get a car loan is almost entirely based on what your credit score looks like.

If you have a good credit score, you don’t have to worry about this part of the self-employed car loan process. However, if your credit is on the lower end of the scale, you may have to provide some additional paperwork to show the lender that you’re able to not only make payments but make them on time. Read how to get a car loan with bad credit if you think this applies to you!

SHOWING THAT YOU CAN MAKE PAYMENTS

Self-employment is a huge accomplishment that you should be proud of because you’re making your own money. Now, all you need to do to lock in a car loan as a self-employed individual is to prove to the lenders that you’re capable of making the monthly payments.

There are a few different ways that you can prove your income to your potential lender. One is through tax returns from the last couple of years. Typically, two years’ worth of tax returns is customary to show that you have a pattern of consistent cashflow.

Another way to show your potential lender that you have an income that can sustain your loan payments is through full bank statements. You don’t need to go back two whole years with these but six months’ worth of full bank statements is good to have.

OTHER THINGS YOU MIGHT NEED FOR A CAR LOAN 

Once you’ve provided your credit score and proved that you’re capable of making payments, you’re almost in the clear for getting your next car loan as a self-employed individual. There are a few other things that a lender may ask you for, though. Be prepared to show the following items in order to secure your self-employed car loan if your potential lender asks for it:

• Proof of residence

• Your most recent mortgage statement

• Your landlord’s contact information

• Personal references, like relatives and friends

• Your most recent phone bill

In some cases, you may even be asked for a personal interview. However, once all of this information is out on the table, you’ll be set to lock in your next car loan.

READY TO GET STARTED ON FINDING YOUR NEXT LOAN?

Self-employed individuals in Indianapolis, Fishers, and Carmel who still have questions about car loans should give us a call at Andy Mohr Speedway Chevy

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