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Self Employed Car Finance

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From controlling your schedule to choosing which work to take on (or refuse), there’s a lot to like about being self-employed. As with mortgages and other lines of credit, however, getting self-employed car finance can be a little trickier. But we’re here to tell you that it is possible – thanks to Go Car Credit!

We specialise in helping people who find securing vehicle finance difficult, including those with bad credit. You could choose from a wide range of quality used cars from any of our approved dealers throughout the UK – even if you’ve had a CCJ or have defaulted on repayments in the past. We’re not a third-party provider or finance broker either, which means you’ll deal with only us throughout. Find everything you need to know about vehicle loans for the self-employed with bad credit below.

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Can I get car finance if I am self-employed?

The short answer is yes!

With the help of several factors such as advances in technology that make it possible to work anywhere and anytime, self-employment has never been more popular. The number of self-employed UK workers increased from 3.3 million in 2003 to 4.8 million in 2017, according to official data from the Office for National Statistics.

Yet it does bring its challenges – including getting a firm grip on your finances. Buying a car while self-employed can be harder to secure and many traditional lenders can make it more difficult to get the financial support you need due to even stricter criteria. Here at Go Car Credit, we don’t believe your career choices should deny you the chance to get behind the wheel of your dream car – or a vehicle which could become crucial to your line of work.

The process of getting a new car should be exciting – not daunting. We’re here to make your life simple and find a car finance solution that works around you and your situation.

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Why is it more difficult to get vehicle finance for the self-employed?

At a basic level, every lender will review a finance application to judge whether the borrower will have the means to stick to their repayment schedule. This responsible approach is a regulatory obligation set out by the Financial Conduct Authority and it’s designed to help protect people – and lenders – from running into serious financial difficulty.

To help make their decision, lenders need as much relevant information about you as possible to show that you can be reliable. When you’re in full-time employment, you can easily provide evidence of your monthly income, contract of employment and how long you’ve been there.

But it’s not as simple to do this for self-employed car finance.

We want to make things that bit easier. We’ll only ask for up to three months’ worth of bank statements and use the average monthly income figure to set your credit limit.

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Can I get car finance if I’m self-employed and have bad credit?

Do you fear being rejected for car finance or other forms of credit because of a poor credit history? Not having a reliable monthly income can make it more difficult to stick to repayment schedules, bringing down your credit score and making lenders even more cautious.

It doesn’t have to be like that, however. You could still get self-employed car finance with Go Car Credit, however – and it could even help improve your credit score!

We don’t use the same restrictive criteria as other mainstream lenders. So, even if you have been declined elsewhere for self-employed car finance with bad credit, you could still get the support you need.

Hire Purchase is ideal if you have bad credit or don’t want to pay the full price of a car upfront. This lets you spread the cost with affordable monthly payments based on your realistic budget. And the best part? Keeping up with your repayments could help you build your credit score – and boost your chances of being approved for other lines of credit!

If you fall behind on repayments on any other existing credit agreements, however, it’s a good idea to try to get them back up to date quickly to improve your chances of being accepted.

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Will my repayments be higher if I have bad credit?

As with most car finance agreements, the rate and terms you’ll be offered by lenders depend on factors such as your credit score and the size of your deposit – if you are putting one down.

Applying for car finance can sometimes feel as if you’re talking to machines. But, here at Go Car Credit, we’ll give you a decision that’s based on a review from an understanding and experienced professional – not just a computer-generated score. They’ll do their best to put together a personalised repayment plan that you can afford once all your outgoings are accounted for.

Why not use our bad credit finance calculator to get a rough idea of how much your monthly repayments could be? Simply use the sliders to select the amount you need and for how long.

Whether you’re looking for self-employed finance for vans, or cars your choice of vehicle is especially important if you have bad credit. Remember to think about all the extra costs including fuel, insurance, road tax and MOT – each will affect its affordability.

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What’s the criteria for self-employed car finance with Go Car Credit?

We’ll review your application on an individual basis because we appreciate that every situation is different. As a general rule, however:

  • We’ll ask you for up to three months’ worth of bank statements as proof of your income. We’ll then divide the total figure by three to get an average income and set a credit limit that works for you.
  • We’ll ask to see three years’ worth of employment history.
  • We’ll ask to see three years’ worth of address history. You must be a UK resident for three years or more to apply for self-employed car finance.
  • We don’t accept tax returns as proof of income or cash in hand payment. It must go into a UK bank account in your name. We can accept proof of income into a bank account in the name of your spouse or partner, but they’ll need to be added on to the finance application.
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Why choose Go Car Credit for self-employed vehicle finance?

Getting the new car you need can be difficult if you’re self-employed – especially if you have bad credit. But it doesn’t need to be that way. Here are four good reasons to see if Go Car Credit can help you get back on the open road.

  • We review applications on an individual basis and decisions are not based solely on just your credit history or personal circumstances.
  • We’re regulated by the Financial Conduct Authority (FCA) – committed to responsible and affordable lending at all times.
  • We’re rated ‘Excellent’ by independent customer reviews on Trustpilot. So, you don’t have to just take our word for it!
  • We’re always happy to offer help or receive feedback and will communicate clearly with you from start to finish.

You can choose your new car from our network of trusted dealerships throughout the UK including Portsmouth, Newcastle, Leeds, Manchester and Glasgow. If you’ve got any questions about how our finance process works, feel free to call our friendly team on 01925 696 373.

How do I apply?

Going into a bank to apply for car finance can feel daunting – especially if you’ve already been turned down in the past. You might also be asked for reams of extra paperwork just because you’re self-employed. But we’re here to make the whole process quicker, easier and clearer.

Simply fill out our short online application form with a few personal details to get started. We’ll review your application and give you a decision as quickly as possible. After that, we’ll ask you for details about your car of choice and request an online signature. Don’t forget – there’s no charge to apply and no obligation to go ahead if you change your mind!

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What can I do to improve my chances?

While we’ll still consider your application for self-employed car finance if you have bad credit, it’s a good idea to do your best to improve it first. Thankfully – as well as checking the handy money management tips we share regularly on our car finance blog – there are some simple steps you can take that could make a big difference.

  • Check your credit report with any of the UK’s three credit agencies – Experian, Equifax and TransUnion – to make sure your debts are registered in the correct name. Mistakes happen and can impact your score unfairly.
  • If you’re not already, put yourself on the electoral roll. This shows that you’re settled and invested in your local area.
  • Make sure all your payments on outstanding debt are kept up to date and on time.