Can I get car finance if I’m self-employed?
Some people are born to be self-employed. It can give you
professional freedom, and allow you to take your own route in discovering the
potential profitability of a passion or talent.
In the modern world, it’s also likely to add up to a lot of
hours on the road visiting clients, assessing manufacturing centres or
attending conferences. These miles are much easier to cover when you have the
right vehicle for your business, however the difficulties
of securing finance for a new car when self-employed are well
documented.
Why do self-employed people struggle to obtain car
finance?
In short, self-employed people often struggle to secure an
adequate financial package with which to purchase a new car because finance
companies are frightened of irregular income.
They’re looking for people with a steady, predictable
income, regardless of whether yours has only been affected by a temporary
financial situation, such as the purchasing of additional assets or securing of
new premises. As a result, they will want to see payslips and/or account
details stretching anywhere up to three years in advance of the request being
submitted.
The irony is that a small business owner may have a harder
time securing finance than their employees, while even self-employed people at
the top of their industry can often find it difficult to secure the deal that
they need.
HMRC: playing by the rules
Self-employed drivers need to be aware of the rules that HMRC
has set out about claiming motoring expenses: “If a vehicle is used for both
business and private purposes then the capital allowances and the total running
expenses will be split in proportion to the business and private mileage. You
will need to keep records of your total mileage and the number of miles
travelled on business to calculate the correct split.”
The Inland Revenue is typically strict in terms of the
records required to prove business use and general upkeep, so you’ll need to
make sure that you keep all records relating to:
- Mileage
- Fuel
- Insurance
costs
- Road
tax rate
How Perrys do things differently
Though it might seem that there’s too many hoops to jump
through before investing in a new vehicle, there is a simpler answer; come down
to your local Perrys dealership and see what we can offer.
At Perrys, we approve 90% of finance applications for specialist
cases, such as self-employment. Our services are highly flexible and require
checks that are far less intrusive than the banks. We understand that everyone
leads different lives and will take a consultative approach to finding the
finance option that’s right for you.
We work with a whole range of the country’s top lenders,
which enables us to find the best options for self-employed people, even if
you’ve been refused finance elsewhere. We keep a close eye on who is providing
the market with the best rates, and our status as a trusted national retailer
means that we can get leading rates from banks including Santander, Barclays
and Hitachi.
Finance options
Perrys offer four main
financial options to ensure that you can find a deal to match your
circumstances. The options include:
- Lease
Purchase
We can also help you cover the cost of maintaining your car
over time by dividing your payments into a manageable monthly sum as part of
the Perrys Easy Drive Service
Plan.
Credit score
We always aim to be sure that we’ve put the right person
with the right car at a realistic rate, so we’ll need to have a quick and
non-invasive look at your credit score. We can find options for people with
most types of credit score without needing to dig into your personal
circumstances. Instead, we recognise the person behind the credit score, and
will continue to work with you to resolve any financial concerns relating to
the purchase of your new car.
How to get started
With Perrys, it’s easy to get set up and find out how we
could help you secure the car finance that you need. Simply fill
in our online application form and we’ll review your details and get
back to you with a quote. Or, stop by your local Perrys dealership and we can
discuss which finance option is right for you. Provided you meet the relevant
criteria, you could be driving away on the same day.
The benefits of buying a car with Perrys when self-employed
are clear. We can help you save money, avoid overly-intrusive checks and have
you driving off the lot on the same day. So, why not start thinking about
taking your business to the next level with a vehicle that enhances your brand?
For more information on the Perrys car financing or any of
our new cars, contact the
experts at your local Perrys
dealership today.