Self Employed Auto Loans

Getting an auto loan when self-employed.

When you are self-employed it can be very difficult in obtaining an auto car loan when you have no credit, very little credit or bad credit. First of all you must be able to prove your income (copies of bank statements). That means running all of your income through a bank account because lenders are going to want to see all of your income for at least three months prior to funding your loan. They are going to want to see tax returns for a minimum of at least two years. If you showed a loss for the last two years in your business, which a lot of businesses do, you might as well forget about buying anything till you start showing a profit. But then again different lenders have different guidelines that do vary from lender to lender and loan to loan.

When you don't have the paperwork ready, it will make the lender work harder and can actually slow the loan process down so you should be prepared. After all, most lenders after they do approve your loan will only give you 30 days to have all the documents in hand that they required for the purchase of the loan.