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Tips for entrepreneurs wanting to get an EV car loan in 2022

Tips for entrepreneurs wanting to get an EV car loan in 2022

Are you running a business or thinking about starting one? Considering an EV car loan in Acton? The Great Resignation is changing the way Canadians work in a profound way.

For most of us, the idea of commuting back and forth to an office Monday through Friday has lost its appeal, especially since everyone was working from home throughout Covid and things went smoothly.

As a business owner, being able to secure financing is more complex than if you were applying for an EV car loan as someone working for an hourly wage.

Lenders need to know whether you will likely repay your loan as agreed; since no one has a crystal ball to reach the future, they will look at impartial indicators to make a decision.

What’s the score?

Lenders tend to fixate on the credit score when assessing the suitability of a potential borrower.

There are some lenders where an algorithm decides whether an actual human should look at the application based solely on the credit score.

While this is a more efficient way of doing things, there are some borrowers who are in a gray area when it comes to credit score/income, which requires human input.

To secure the best interest rates on a car loan in Acton, you need a credit score that is 720 or higher.

The minimum credit score needed to secure a car loan is 600, but realistically 620 should be your minimum cut-off. You need to check your credit score with both agencies to be on the safe side.

You could have a high score with Equifax and a dismal one with TransUnion; the only way to know with certainty is to sign up for free access with both agencies.

Does it make dollars and sense?

After the lender has looked at your credit score, the next thing they focus on when dealing with an entrepreneur car loan is your income.

Are you able to generate enough income each month to service all of your obligations, including the new car loan you are trying to secure?

The income for most entrepreneurs ebbs and flows. Some months are better than others.

What the lender will do is try and calculate your average monthly income.

To make your life and the life of the loan underwriter easier, provide them with access to your banking statements for the last year and your latest income tax notices.

This information should give the loan underwriters all of the information they need to make a determination.

The ideal place to secure a car loan for entrepreneurs

Your local bank is not likely to give you a car loan, and if they do, there are no guarantees that it will be competitive.

The best way to get a good car loan is to deal with people in your community, people who know you on an individual level.

Head to a neighborhood car dealership and start looking at your loan options; this is by far the best way to get approved for a car loan as an entrepreneur.

If you need help or advice on anything to do with auto loans in Acton, contact Car Nation Canada today, we can help!

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