Can You Get Car Finance If You’re Self-Employed?

If you’re self-employed, taking out credit can be difficult. Because it’s harder to prove your income, lenders are often more reluctant to accept your application. But this doesn’t have to be the case with car finance. There are a number of lenders who will consider your application, even if you’re self-employed, and can help you drive away in your dream car!

So if you work for yourself, and are looking into vehicle finance options, Wheelie Good Finance can put you in touch with a suitable lender! We work with a large number of reputable car loan providers across the UK, many of which finance self-employed loans.

Can I Get Car Finance If I’m Self-Employed?

Yes, you can! As long as you’re able to prove your income, you should be able to get a vehicle on finance. The reason you need to show lenders your average monthly income is that they need to know that you’re able to afford the loan repayments.

Showing a lender your income is easier than ever, even if you’re self-employed, with the rise of open banking. While this sounds like lenders have access to your bank account, that’s not the case. It’s simply a way for loan providers to see the last three months of your bank statements, without you needing to download them or print them off individually. Generally, the lender will take an average of your income over these three months, and use this figure on your car finance application.

Another thing lenders look at when making a loan decision is your credit history, as well as your credit score. These things will be a good indicator as to how you manage your finances. For example, someone who has made several late credit payments tends to have a lower credit score, and may be less likely to to be approved for a car loan. On the other hand, if you have a good credit history, you might be offered lower interest rates, and have a higher approval rate. Essentially, lenders use your credit history to determine how likely you are to repay the loan on time.

self employed car finance

Is It Harder to Get Car Finance If I’m Self-Employed?

Unfortunately, it can be more difficult to take out a vehicle loan if you’re self employed, as is the case with any loan. But with self-employment on the rise, it is becoming easier to apply for credit. According to Statista, there are approximately 4.3 million self-employed individuals in the UK, which is more than 10% of the UK workforce – certainly not a percentage that can be ignored!

Lenders like people to have stable employment, as it means they’ll have a steady income, and should be able to afford the loan repayments. With self-employment, it’s harder to prove that you’ve got jobs lined up, and will be able to commit to a long term credit agreement.

One of the best things about working with a broker like Wheelie Good Finance is that we can help you find a lender that will consider self-employed applications. We’ll compare our panel of lenders, taking your requirements and personal details into account, and do our best to match you with a suitable car finance provider.

Can I Get Car Finance If I Have Bad Credit?

It’s fairly common for self-employed people to have a poor credit history. This is because self-employed individuals don’t always have a steady income, so can fall behind on their credit commitments and other repayments. But having a low credit score doesn’t necessarily mean that you can’t get a car on finance. There are a number of lenders who specialise in bad credit vehicle finance, offering loans to people with a poor credit score.

It is important to bear in mind though, that bad credit car finance will often come with higher interest rates. You may be able to spread the repayments over a longer period, to reduce your monthly payments however. It’s important that you discuss this with your car finance provider before you sign the loan agreement.

bad credit car finance

Check Your Credit Score

It’s also a good idea to check your credit score before you apply for a car loan, as there could be a few simple tricks you can try to improve your score. For instance, if you’re not registered on the electoral roll, which proves your address, registering may be able to increase your credit score.

You can check your credit score for free using sites like Credit Karma and Experian. These websites furthermore offer tips and guidance on how to boost your score.

How Do I Apply for Car Finance?

Applying for car finance with Wheelie Good Finance is quick and straightforward! Simply let us know how much you’re looking to borrow to fund your dream car, enter a few personal details, and we’ll do our best to pair you with a suitable lender.

Even if you’re self-employed, and therefore have more difficulty proving your income, you should still be able to take out a vehicle loan. Many of the lenders we work with specialise in self-employed car finance loans – they’ll work with you to find an agreement that suits your needs.

Looking for Vehicle Finance Options?

Applying for finance through us should only take a few minutes, and won’t impact your credit score. So what are you waiting for?


Get in Touch

Want to discuss your options, or learn more about the application process? Our friendly team are ready to help!