Car finance calculator

Good credit
Bad credit
Amount to borrow:
£
To repay over:
5 Years
Car finance rate XX% APR
Cost of credit £ XXX
Total repayment £ XX,XX.XX
48 monthly payments of
£ 245 /mo

Representative example - Borrowing £5,500 over 4 years with a representative APR of 19.8%, and a deposit of £0, the amount payable would be £162 per month, with a total cost of credit of £2,282 and a total amount payable of £7,782.

Carplus will find the best car loan rate from our panel of lenders and will offer you the best possible deal. We don’t charge fees, but we earn a commission. This does not influence the APR you’re offered in any way.

We compare car finance deals for you

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Self-employment is a fantastic adventure that gives you freedom of action and the ability to customise your work schedule. But at the same time, it can inadvertently provoke some financial difficulties - such as getting car finance. As this service requires permanent employment and a steady income, it can be problematic to get the necessary paperwork.

Getting self-employed car finance in the UK is no problem at Carplus! We work with many lenders and dealers who understand the peculiarities of working with the self-employed and are willing to meet the customer's needs.

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

Of course, you can! The main challenge for you as a self-employed person is confirming your income and passing a credit check. Don't worry about any problems - at Carplus, we'll make sure everything goes smoothly and quickly. Your self-employment won't be a barrier to getting car financing - even if you don't have the best credit history.With us, you will receive self-employed car finance on the best terms and get the deal that suits you and your lifestyle.

How does car finance for self-employed customers work?

The first and foremost thing that lenders are interested in when getting car finance when self-employed is proof of your income. This will help finance specialists offer you the best options.

Some lenders ask for three years' worth of statements, which can be a problem for the self-employed. However, we understand your situation, so we help you compare all lenders and find the right option. Our extensive experience in finding the best auto loan offers for the self-employed helps us in this endeavour.

Why is it more difficult to get vehicle finance for the self-employed?

It lies in the uncertainty and variability of your employment and salary. Lenders understand those who work for a company and earn a fixed salary.

With self-employment, on the other hand, it's a little more complicated. There are no guarantees of stability here. Agree - there may be months when the amount of work is increasing, and all bills are paid on time, and there may be months when there is no work at all, or it is progressing incredibly slowly. The lack of stability at these points makes lenders wary.

What do i need to be eligible?

To verify your income, you will need to provide three months' worth of bank statements. Another option is open bank statements, which will help the lender understand your monthly income and expenses.

In addition to this information, you will need to provide the following information:

  • Your full first and last name and age (you must be between 18 and 75 years old)
  • Driver's license
  • Employment details
  • Your residential status and address (you must have been a UK resident for at least 12 months)
  • Cell phone number and email address

If you plan to use your vehicle for business, be sure to let your manager know. This may change the options available, so we should know in advance.

Car finance for self-employed with bad credit

At Carplus, we offer car finance for self-employed people with bad credit. Whatever your credit rating, you can improve it quickly - with our help, of course.

We work with lenders with extensive experience in processing deals for people with bad credit histories, such as defaults or CCJs (county court judgments). We also work with those with no credit history at all - this is especially helpful if you're a young aspiring entrepreneur. An excellent option for those with a bad credit history can be a guarantor. This can be a family member who can vouch for your creditworthiness.

Advices for self-employed

If you've never dealt with self-employed car finance, we can give you some tips:

  1. Clean your credit - сheck your credit history for errors, inconsistencies, and other mismatches that could lower your chance of getting a loan.
  2. Get your finances straight - be sure to pay off all old loans and end the financial partnership if the other party has a bad credit history.
  3. Get on the electoral roll - this will help the lender confirm your identity and residential address.
  4. Provide your latest trading accounts - this will prove your solvency of the business and your ability to repay the loan after accounting for expenses.
  5. Consider a large deposit - not only will you pay less and reduce your risk to the lender, but you'll also reduce your interest and monthly payments.
  6. Propose a guarantor or submit a joint application - a guarantor can vouch for you or support you in case you have trouble making payments, but be sure to check that the person has a good credit rating.

Why choose carplus for self-employed car finance?

Extensive experience and expertise: Our team consists of experienced professionals ready to help and support you in obtaining a loan.

Ability to track the application: We provide each client with an application tracker link to track the progress online.

Hundreds of satisfied customers: In the testimonial section, you can see honest opinions from customers who helped finance a vehicle, even with bad credit.

Professionalism and Ethics First: The Financial Conduct Authority regulates our business, and therefore we only approve applications that are safe in terms of monthly payments.

FAQ

Let us look at the most popular questions about car financing for the self-employed.

Do you need proof of income for car financing?

Yes, we do. Creditors usually ask for proof of self-employed income for the past 3-6 months, so be ready to show the documents on that matter.

Will my repayments be higher if I have bad credit?

Yes, they will, as a creditor needs backup in case you aren’t able to pay the loan off in full. However, you can reduce the interest rate by proposing a guarantor with good credit history.

What should I do if I’m struggling to show proof of income?

There are several ways out of this situation:

  1. If you own a home, get a copy of your rent payments and at least two bank statements.
  2. Bring in a co-signer or a guarantor.
  3. Ask the insurance company to give you proof that you and the car you want to buy can be insured.

Do car lenders call your employer?

Yes, they do. This way, they confirm the employment information you have given them and have a backup communication channel with you. However, this is only done if you are not overdue for payment.

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