At Oodle, we believe your employment status shouldn’t stand in the way of driving the car you need. That’s why we offer flexible car finance options for freelancers, contractors and sole traders. With a simple application process, quick approvals and trusted service backed by real customer reviews, we’re here to help you get on the road with confidence.
Can I get car finance if I’m self-employed?
While it’s certainly possible to get car finance if you’re self-employed, the process is a bit more time-consuming compared with being on the payroll for someone else.
You will need to provide a range of documents to any potential lender to demonstrate that you are financially stable and, therefore, a suitable candidate for credit.
That said, because the demand for credit has grown, and so many people are self-employed in the UK today – around 4.31 million to be precise – the industry is now much better equipped at serving
this sector. Some lenders, including Oodle, gladly offer self-employed car finance as long as you satisfy their criteria.
If you work for yourself, you can apply for car finance in exactly the same way as anyone else; there may just be a few extra steps to take before you are approved. What it boils down to is being able to
satisfy any potential lender that you can be relied upon to repay any car loan, despite having irregular earnings.
What documents will I need to get car finance if I am self-employed?
Every lender will have their own criteria, but broadly you can expect to provide some, or all, of the following:
3-6 months’ worth of bank statements
Recent tax returns
Details of your trading accounts if you are a registered company.
What are the best ways to finance a car for the self-employed?
The same car finance options are open to those who are self-employed as to everyone else. There are several different types of car finance, the most popular being hire purchase (HP), personal contract loan (PCP), or personal loan. As with any big financial commitment, you’ll need to do your research to decide which is the best choice for you and be certain that you can afford to make the repayments before going ahead.
How can I increase my chances of getting approved for car finance if I’m self-employed?
There are several things you can do to make yourself more attractive to lenders.
Register on the electoral roll – Firstly, make sure you are on the electoral roll. This confirms your address and identity and is a fundamental component of a good credit record.
Manage your financial stability – Make sure your finances are in order. Ensure outstanding debts are paid off, cancel any non-essential subscriptions and try to keep your regular spending in check. If possible, end any financial agreements (joint bank accounts for example) that you have with any third parties who have a poor credit rating, as it could impact your own score. Keep thorough, up-to-date records of your earnings and expenses, bank statements and tax returns, because these are likely to be requested during any finance application. Having organised, accessible records will help to keep any finance application as pain-free as possible.
Improve your credit score – Your credit score plays an important role in a lender’s decision regarding your car finance
application. If you’re self-employed, having a good credit score increases your chances of getting accepted for car finance. Therefore, it’s a wise idea to work on improving your credit score before applying. You can do this by consistently making on-time payments, staying within your credit limits, paying off old debts, registering to vote, checking for errors, reporting any mistakes, and more. Learn more about credit score.
Place a substantial initial deposit – Saving for a larger deposit can help to increase your chances of securing finance. The more cash you can supply up front, the less risk lenders will feel they are taking, making them more likely to provide you with the funds you need. Plus, the larger the deposit, the smaller the loan you’ll need to pay off, with less interest and lower monthly repayments overall.
Whether you need a reliable vehicle for work, looking to switch to electric, or simply want more space for your day-to-day needs, an Oodle Car Loan could help you spread the cost.
Apply Online
Find out if you're pre-approved in minutes
Get accepted
You’ll have your money in your account the next working day
Shop anywhere
Buy the vehicle that suits you best, wherever you find it
