Car finance for the Self-Employed

By CarMoney April 27, 2021
Car finance for the Self-Employed

If you’re self-employed, car finance doesn’t need to be a challenge. We have a large panel of lenders who understand the unique challenges of self-employed work or running your own business, and there are some who are happy to help drivers like you secure the finance you need to get out on the road! 

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

The short answer to the question is yes! The key thing will be proving your income, along with the usual checks on your credit score. The lenders we will be contacting on your behalf will be looking out to see if you can afford your monthly repayments, and they will do this by checking your credit score. 

To work out your average income, lenders will usually total your income in the last three month’s bank statements and divide it by three. This then allows them to get a credit limit based on your proof of income. This can vary slightly if you have a lower credit score. In this case, you may be required to produce in excess of three months’ worth of bank statements or payslips to prove your income. Self employed car finance is possible with CarMoney.

Is it more difficult to get finance when self-employed?

The good news is that self-employed workers now make up almost 16% of the UK workforce, meaning that lenders are much more ready to approve someone who is self-employed. You may be asked for more information about yourself than usual, but this is only so the lenders know as much about your financial history as possible before they make their decision. 

UK Self-employed chart |

Lenders are looking for evidence of stability in employment and address history – the longer you have been at your current job and address, the better. They also check your credit score, so make sure to get a credit report free from Experian, Equifax, or Callcredit before you go ahead with applying.

What if I am self-employed but have poor credit?

Having a lower credit score doesn’t mean you won’t have options when it comes to financing. There are many lenders who specialise in bad credit car finance for those customers with lower credit scores It is likely the interest rates will be higher, but you can spread the cost further with some agreements. 

If you are self-employed with poor credit, then it becomes vital that you prepare before you apply:

  1. Look through at least 3 months of bank statements and try to see them as a lender would look at them.
  2. Get a credit report to see where you have been going wrong.
  3. Try our eligibility checker or ‘soft search’ to get an idea of what kind of offers you may be getting. (Only to be used as a guide)
  4. Make sure you have proof of address for the last 5 years at least (if possible).
  5. Register on the Electoral Roll if you haven’t already.

Why use CarMoney if I am self-employed?

First of all, we know how stressful trying to find a new car is, and we can appreciate the time and effort it takes to get a car on finance. So we act as a middle-man between you and the lenders. We are impartial and speedy and will do all the awkward stuff that you don’t have time for, especially when self-employed! 

We can give you a free eligibility check that won’t affect your credit score, and will give you an idea of which lenders may accept you. Plus, we can deliver the car right to your door, anywhere in the mainland UK! 

Our panel of lenders have vast experience with those who are self-employed and can offer agreements to best suit you. 

How do I apply for car finance with CarMoney?

I am glad you asked! We have a very simple process, and we have an expert team of ninjas that are there to guide you through the process and find you the best deal possible. But what is the process?

  1. You can apply quickly and securely online or you can call one of our dedicated ninjas on 0333 456 4550. 
  2. Already found a car? Great – just send us the details. Don’t worry if you haven’t found a car yet – we can help. You can run quotes on over 450,000 cars on sale today on our website. Prefer to talk? Our ninjas provide a free concierge service to help you find the perfect car.
  3. Once we have your finance application and car of choice we spring into action to get you the best finance around. Our ninjas use special algorithms to search over 20 lenders from across the UK.
  4. Once you are happy with the lender, agreement and monthly payments then all that is left to do is sign the documents and pick up your brand new car!

Want to find your perfect new car today? Search our classifieds to find the perfect car, or why not try our eligibility checker to see if you could get accepted today! 

CarMoney LIMITED is authorised and regulated by the Financial Conduct Authority (FCA) for consumer credit activity and our registration number is 674094. Representative 17.9% APR. Over 18’s only. CarMoney IS A BROKER NOT A LENDER.

REGISTERED ADDRESS: Pioneer House, 2 Renshaw PL, Motherwell, ML1 4UF, Scotland.Company Number: SC467274.

All finance is subject to status and income. Written Quotation on request. CarMoney Limited can introduce you to a limited number of finance providers based on your credit rating and we will receive a commission for such introductions.