Car Loans for Self-Employed Workers

Self Employed people often find it really difficult to get car loans, whether for the purposes of their business or simply for themselves. But by putting in a bit of research and choosing wisely it is possible to find a number of new and innovative brokers, finance companies, banks and financial institutions who are now prepared to offer car loans to self-employed workers. The reason for this is that because the loan market has opened up and there are more companies and banks permitted to lend money, the market for lenders is less cosy and more competitive and they are forced to be more amenable to a wider group of borrowers, This makes things a lot easier for the self-employed workers. So if you need a car for your business and you need a loan, you need to do the research and look for the most suitable loan from the most suitable broker for your needs.

Car loans will be divided into two groups, The first group will be unsecured loans which you can get without having to offer up anything as security for the loan. All you will need for an unsecured loan is proof that you have your own business and that the business earns you a sufficient monthly salary to enable you to repay the loan. Normally statements from your bank account will suffice as proof. The second group of loans are secured loans. These are loans where you do need to provide a fixed asset for security, and normally this will be your home, so it is worth thinking very carefully about whether you want to put your home up for collateral. Other than that the other thing to consider is the rate of interest. Normally the interest rate will be much lower for secured loans so unsecured loans offer the advantage that your house is not at risk but the disadvantage that you'll end up with higher monthly repayments.

Once you have decided which loan to go for all you need do is gather together the correct paperwork and proof of income. Even if you are self - employed all they wish to see is that you have a regular monthly income and that you have had that income for a long and consistent period of time. If you are self- employed but can show consistent income and a good credit history, you will be fine. It is even possible to find such loans on the internet which might be useful for self-employed people who are busy working from home. Not only do you not have to waste time going around town looking for the best brokers but the response time is normally extremely quick too. Do your research and you should be able to find brokers who specialize in loans for the self -employed. Normally they will be companies who sell all kinds of products to the self-employed, from self employed or contractor pensions to contractor tax solutions or umbrella companies to self employed mortgages. Do your research and find companies such as these and you will normally find better rates for self-employed car loans.

Greg Dickson is an expert in contractor and self-employed tax issues. He currently works for the Bedouin Group.

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