Car finance for the self-employed

Wondering if you can get car finance if you are self-employed?

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Representative APR 24.9%

From enjoying a flexible schedule to governing your own work, there are a lot of benefits to being self-employed in 2022.

Here at Car Finance Genie, we totally get the appeal – which is why we make it a real priority to help any and every type of self-employed motorist to try and find the car finance deal that works best for them.

We aim to provide the best quality of service, and make it as straightforward as possible for a wide range of drivers to access the best vehicle financing options for their needs, whatever their circumstances or credit score might be.

Although we work hard to achieve this effectively and efficiently with no fuss, we understand that car financing can be a daunting subject to many self-employed drivers.

The good news is that with our help, it doesn’t have to be a struggle. Although it’s true that there are unique obstacles that come with seeking car finance while self-employed, such as having to meet the strict criteria set by many lenders which targets those who don’t work traditional jobs, that doesn’t mean the process isn’t worth inquiring about.

We’re here to identify and provide a personalised solution that is compatible with your lifestyle.

The different types of car finance

There are a number of car financing options available to self-employed people.

It is always good practice to think carefully about which route is truly right for you and your specific situation before going ahead with your choice.

It is also generally very helpful to thoroughly research each possible outcome beforehand in order to avoid any potential difficulties from arising.

The three main forms of car financing for the self-employed are as follows:

  • Hire purchase (HP) – This is the most ubiquitous type of car financing. It is very popular among many drivers, and for good reason, as it is usually a very straightforward process to apply for and obtain it. You generally pay a deposit and then pay off the value of the vehicle in monthly instalments, with the loan secured against the car. When the deferred payment is entirely paid off, you will then legally own the vehicle in question.
  • Personal contract purchase (PCP) – this option is more of a go-to for those with new cars, as with PCP these monthly instalments also cover the car’s depreciation, which is the difference between a car’s value when you buy it and a car’s value when you eventually sell it. You can also make a “balloon payment” to own the car fully by the time your contract expires.
  • Personal loan – you can choose to invest in a loan to cover the costs of the car, which will be yours from the get-go. It will then simply be a case of paying off the loan over time.

Why is car financing harder for the self-employed?

It’s not easy for those with unconventional employment to find what they’re looking for in the world of vehicle financing.

As a customer, it can be difficult to understand why. Put simply, lenders are often cautious to proceed with self-employed applicants after reviewing their financial forms and assessing whether or not they will be able to keep up with their repayment schedule.

Although this may seem like a hassle at best and an injustice at worst, it is in fact a closely upheld policy regulation, designed to keep both the business and the client financially and legally secure.

While reviewing your financial application, it is helpful for lenders to gather as much personal information about you as possible, especially in a professional capacity. The process includes analysing your deposit, credit score and proof of income.

This is typically much easier to achieve for customers who are employed in a more conventional position, as they can provide strong evidence of monthly income and a contract, as well as a written history of how long they have been with their company.

It is a lot more difficult, however, for those who are self-employed and working under their own jurisdiction, which tends to cause hesitation in lenders across the UK.

How we work.

Car finance made easy with 4 simple steps

Ready for a new car? Get a no-obligation finance quote. We consider most credit situations and have access to a wide panel of lenders, so we can find a car finance option which suits you
Your car finance application
Get decision
We compare our panel of lenders and our experts will be able to outline the best options available to you if approved
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Choose a car
With hundreds of trusted quality used cars available from our carefully selected dealers, your dedicated Genie will be on-hand to help find the right car for your needs and budget
Drive away
Wish granted. Complete all of the required documents and get the keys to your new car

Car financing with a poor credit score

Many of those who use us as their chosen car finance broker worry that having a poor credit score will lead to rejection when they seek car finance, or even other forms of credit such as a mortgage.

After all, not being able to prove that you have a reliable source of income can typically make fulfilling repayments a little more difficult – and if you can’t keep up with repayments, this could adversely affect your credit score.

This doesn’t look good to car lenders and can make them quite wary of doing business with you; however, that is not always the case 100% of the time. At Car Finance Genie, we work with lenders who make an effort to be as flexible as possible with their customers and their payment plans, which means getting the help you need is absolutely still within the realm of possibility.

We enthusiastically offer the “hire purchase” option mentioned above, which can work wonders for people who may not have the best credit score history. This option allows you to break the cost down into manageable chunks, by factoring in a monthly payment into your current budgeting. It also gives you ample opportunity to improve your credit score.

Why choose Car Finance Genie?

Our incredible service

With over 100 independent 5-star reviews, don’t take our word for it. Find out what our customers have to say!

Trusted dealer network

We’d never send you to the wrong place! Our fantastic network of carefully picked, trusted dealers mean you can get the car you want with complete piece of mind.

SAF Approved

SAF Approved provides recognition for companies like Car Finance Genie where all of our staff involved in your finance application have passed the SAF Expert test.

CFG Quality Assured

Our rigorous checks and trusted dealers mean you can drive away without having any worries on your new vehicle’s quality.

No deposit finance available

We offer various flexible options within our finance options including bad credit finance and car finance without a deposit. Whatever your situation, we’ll try our best to help!

Years of experience

There’s no question our car finance specialists won’t try and answer. Put it to the test and get in touch today!

Rates from 10.9% APR. Representative APR 24.9%

The exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £8000 over 5 years with a representative APR of 24.9%, a fixed annual interest rate of 24.9%APR and a deposit of £0.00, the amount payable would be £220.67 per month, with a total cost of credit of £5420.20 and a total amount payable of £13,240.20

We look the find the best rate from our panel of lenders and will offer you the best deal you’re eligible for. We don’t charge for our service but we will receive a commission. This does not influence the interest rate you’re offered in any way but can vary by lender.

We act as a broker, not a lender. Further info on request.

Does bad credit equate to higher payments?

While it is true that the rate you’ll be given by lenders generally does depend on factors such as your credit score, and the size of your deposit, that doesn’t necessarily mean you won’t be able to find a payment plan that fits you.

At Car Finance Genie, the lenders in our network strive to offer genuinely affordable car finance, wherever possible. Several of the lenders we work with specialise in helping borrowers with less ‘traditional’ circumstances, such as those who are self-employed.

So, if this describes you, you can still be confident of us trying to finding a great car finance deal.

Line of Cars

What we offer

Here at Car Finance Genie, we genuinely love what we do, which really shows in the overall quality of the service we offer. Read on as we break down why we’re the best choice to go with when it comes to seeking car finance while self-employed.

Outstanding service – we strive to offer industry-leading customer service to every single person who enquires to us about vehicle financing. With years of experience, and over five hundred five-star reviews, it’s clear that we’re doing something right. Check out our customer testimonials for more information.

Trusted dealer network – at Car Finance Genie, we deeply value both the financial safety and comfort of our clients, which means we’d never steer you wrong! We have a carefully selected and vetted network of trusted dealers, who are able to provide high-quality vehicles at a reasonable cost.

SAF Approved – in layperson’s terms, “SAF Approved” simply indicates the recognition of businesses such as ours, where every employee who will be involved in your finance application will have passed the SAF Expert test. This means we are able to offer first-rate assistance, offering only the best advice for all of your questions and potential worries.

Flexible payment options – as previously mentioned, we also pride ourselves on being able to support drivers from a variety of personal and professional backgrounds. This is why we help make available a multitude of car finance options, ranging from bad credit finance to car finance without a deposit, and more.

CFG quality assured – at Car Finance Genie, our vehicles are confirmed to be of a high standard. We work with trusted dealers and careful checks are carried out, so you can be assured that the car you eventually drive away will be of excellent quality.

Improving your chances of getting car finance

Although we are willing and able to offer our services to a wide range of customers as a broker, and we enjoy doing our best to help regardless of the situation at hand, there are still a number of ways to increase your chances of a successful application.

Along with checking out our financing blog for further monetary guidance, there are a few simple tips and tricks you can employ that could help boost your chances of success if you are a self-employed person seeking car finance. They include:

Reviewing your credit report – take the initiative to check credit report utilising agencies such as Experian or TransUnion to ensure all personal information registered regarding your debts is accurate and up to date.

Work on your credit score – make sure you are keeping up to date with your repayments on any loans you have already taken out, and being responsible with your money in general. This will help improve your credit score, which in turn, will be good news for your car finance application.

Make sure you’re on the electoral roll – registering yourself on the electoral roll is a simple yet dependable way to show that you’re invested in your local area, which is very attractive to car financing companies up and down the country.