--- title: How to Finance a New or Pre-Owned Car If You Are Self-Employed description: To secure auto financing when you are self-employed, make sure you've got key documents in hand before you apply. image: http://www.deboersauto.com/hubfs/financing-a-new-car-if-youre-self-employed-deboers-auto.jpg --- [![KO_DeBoers_Insignia_LOGO_Final_01](https://www.deboersauto.com/hs-fs/hubfs/KO_DeBoers_Insignia_LOGO_Final_01.png?width=282&height=200&name=KO_DeBoers_Insignia_LOGO_Final_01.png) ![Copy of Deboers_LOGO_Final_01-01](https://www.deboersauto.com/hs-fs/hubfs/DeBoers%20Auto%20Logo%202018/Copy%20of%20Deboers_LOGO_Final_01-01.png?width=250&height=144&name=Copy%20of%20Deboers_LOGO_Final_01-01.png) ](https://www.deboersauto.com/) [![(973)529-836083 State Route 23 NorthHamburg, NJ 07419](https://no-cache.hubspot.com/cta/default/354552/9a49b6ea-d33c-4ef3-b93b-8d71b1708c47.png)](https://cta-redirect.hubspot.com/cta/redirect/354552/9a49b6ea-d33c-4ef3-b93b-8d71b1708c47) [**](https://www.deboersauto.com/blog/how-to-finance-a-new-or-pre-owned-car-if-you-are-self-employed#tmpmodule_1568761248550301) ** ###### 3 min read # [How to Finance a New or Pre-Owned Car If You Are Self-Employed](https://www.deboersauto.com/blog/how-to-finance-a-new-or-pre-owned-car-if-you-are-self-employed) By [Bill DeBoer](https://www.deboersauto.com/blog/author/bill-deboer) on Feb 15, 2016 3:59:42 PM ###### Topics: [Buying A Certified Pre-Owned Vehicle](https://www.deboersauto.com/blog/topic/buying-a-certified-pre-owned-vehicle) ![](http://www.deboersauto.com/hubfs/financing-a-new-car-if-youre-self-employed-deboers-auto.jpg) For many people, being self-employed represents the pinnacle of success. Self-employed people can set their own hours, make the rules and reap the rewards of hard work. There are drawbacks to self-employment, though. One of the biggest is it can be tough to prove how much money you make. A reliable, steady, sufficient income stream is one of the most important things lenders look for when evaluating loan applications. The good news is you can get [auto financing when you are self-employed](https://www.deboersauto.com/car-loan-application) if you can produce some key documents to prove your income. ### **![Learn how to finance a new or pre-owned car if you are self-employed.](http://www.deboersauto.com/hs-fs/hubfs/financing-a-new-car-if-youre-self-employed-deboers-auto.jpg?width=500&name=financing-a-new-car-if-youre-self-employed-deboers-auto.jpg "Learn how to finance a new or pre-owned car if you are self-employed.")** ### **Here’s What You Should Gather Before You Seek a Car Loan** No one applying for a loan likes to be turned down. If you’re self-employed, you can significantly boost your odds of being approved for a car loan if you gather the following information. Securing this information is the number one step you should take if you’re considering *how to finance a new or pre-owned car if you are self-employed.* - Three consecutive months of bank statements showing regular income - Your last two annual tax returns (assuming they verify your income claims) - Proof from your bank that your business account has not had any incidences of insufficient funds or overdrafts When lenders see these documents, they’ll likely be convinced you are a strong candidate likely to pay your loan on time. Additionally, the larger the down payment you have, the smaller the loan-to-value (LTV) ratio will be. The smaller the LTV ratio, the better your odds are of securing a loan. ![Find out how to handle auto financing when you are self-employed.](https://www.deboersauto.com/hs-fs/hubfs/financing-a-new-car-if-youre-self-employed-deboers-auto..jpg?width=500&name=financing-a-new-car-if-youre-self-employed-deboers-auto..jpg "Find out how to handle auto financing when you are self-employed.") ### **What If You Run into a Stumbling Block?** Like anyone, self-employed people may not have ideal credit. While many lenders do offer **loans for self-employed with bad credit, **being self-employed *and* having bad credit makes you a higher-risk candidate. Bad-credit loans are available but expect to pay more in interest and consequently have higher monthly car payments. There is a bright side, though. Making regular, on-time payments on your car loan will boost your credit score. ### **Important Steps to Take Before You Go Car Shopping** Once you’ve lined up your documentation and financing, it’s time to find your ideal new car! Considering that buying a new or used vehicle likely represents one of the biggest purchases you’ll ever make, don’t head out to shop until you’ve narrowed down the type of vehicle that makes most sense for your lifestyle and the maximum price you wish to pay for that vehicle. If your self-employment involves hauling equipment or merchandise, a roomy pickup truck or SUV might make the most sense. However, if your job requires you to shuttle clients around (perhaps you’re a real-estate agent or an Uber driver), a comfortable sedan or even a luxury vehicle may be more appropriate. Before you shop, know what you’re after and research your options online. Whether you are self-employed or hold a more traditional job, if you’re considering buying a new-to-you car, [contact us](https://www.deboersauto.com/contact-deboers-auto) at Deboer's Auto Sales and Service. You’re sure to find options you’ll love in our extensive inventory of quality pre-owned vehicles. Yes you *can* get a great car without dealing with dealership high-pressure sales tactics and high prices. [![10 Tough Questions](https://no-cache.hubspot.com/cta/default/354552/817f7808-30dd-47c1-8c76-a36eb741c8a2.png)](https://cta-redirect.hubspot.com/cta/redirect/354552/817f7808-30dd-47c1-8c76-a36eb741c8a2) - [Tweet](https://twitter.com/share) ![Bill DeBoer](https://app.hubspot.com/settings/avatar/b794ce60bb0e2a447f9db08a88a1b429) #### Written by [Bill DeBoer](https://www.deboersauto.com/blog/author/bill-deboer) William J. DeBoer is the Visionary at DeBoer’s Auto. As the company’s CEO, Bill has been responsible for bringing innovations in daily operations to the full-service, high-tech auto repair facility for 20+ years. Passionate about computers from an early age, Bill’s interest in technology gravitated to cars while he was in college. By obtaining a Certificate in Automotive Technology followed by a B.S. in Business Management from Penn State, Bill was able to fuse his interests into a car technology specialization and join the family business shortly thereafter. 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