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Everything to Know about Self-Employed Car Loans in Delhi

Everything to Know about Self-Employed Car Loans in Delhi

The pandemic has forced us to reassess how our work-life balance. If you decided to start your own business, then you are in the right spot. One of the biggest challenges you will experience is being able to get a self-employed car loan in Delhi.

 

Why it’s hard to get self-employed car loans in Delhi

 

Lenders are under the impression that self-employed borrowers pose a higher risk of defaulting than someone who works a conventional job.

 

The pandemic has shown us that no one has job security. So being self-employed is one way to safeguard your income.

 

Another reason why lenders are reluctant to give loans to self-employed borrowers is the perceived income instability. Luckily, we will show you how to address those concerns and get your loan approved.

 

Do you have great credit?

 

The average credit score in Canada is around 650 and to qualify for the most competitive loans, you need a 680 credit score. You can check your credit score for free with the app Credit Karma.

 

If your credit score is below the 680 mark, you could be carrying a large amount of debt. Most self-employed Canadians put their business expenses on their personal credit cards, who doesn’t love reward miles! Carrying a large amount of debt will drive down your credit score.

 

Lenders use credit scores to determine what is the interest rate they are going to charge, so you need to do everything you can to boost your credit score.

 

How to document your income

 

This is the most challenging step for self-employed car buyers. You can’t provide a salary slip because you don’t have any.

 

What you should do is provide your income tax assessments and bank account statements for the last year. The lender can look at your total income and average it out monthly, with this amount the lender can determine what is the maximum loan you can afford.

How to find lenders that provide self-employed car loans in Delhi

 

The Internet may seem like the most logical place to find these lenders but that is where you are wrong. Lenders that specialize in self-employed car loans are not able to scale so they prefer to work with dealerships.

 

Your neighborhood dealership will be able to help you secure a self-employed car loan. You will need to book an appointment with them, so they can analyze your finances and determine which lender is the right one.

 

These dealerships have the most extensive network of lenders in all of Canada, so you will be happy with the deal they can secure.

 

The dealership has an excellent inventory of new and previously owned vehicles for you to choose from.  Once you have loan approval and find the car of your dreams, you can seal the deal.

 

Buying your first car as a self-employed Canadian is going to be memorable. Now that you know how to access these loans, what are you waiting for? Car prices are rising so you need to be proactive before the car of your dreams is out of your price range.

 

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

 

For any questions or concerns, please don't hesitate to contact us here! 

 

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