You can get a “self employed auto loan” for a new or used car even with a bad credit history or bankruptcy.
Applying for car loans for self employed with bad credit can be as easy if you have the correct paperwork.
Valley Auto Loans has lenders who supply car loans for self employed with bad credit or good. They can save you and your family a lot of money with a better interest rate than the average bad credit auto loan companies. We can also show you how to save thousands on the selling price of your next car.
However, with self employed loans, the car loan income verification documents you must show are different for a self employed person than for W2 employees.
Car Loans For Self Employed, Easy Process
Whether you own your own business, or you are an independent contractor working for a company, you can verify your income with tax returns and other tax documents.
If you are self employed but can not prove your income, you will not be able to get a secured loan unless you have documented income proof like a 1099.
Independent contractors and others who work on contract with companies receive a 1099 form for reporting their income instead of a W2 form. The W2 form documents wages for an employee, and the 1099 documents contract payments to the worker.
If you are in business for yourself, and you need a self employed car loan, you can use your 1099 forms. This along with your tax returns, to verify your income will be sufficient to prove your income.
Valley Auto Loans uses a simple auto loan application that makes your application process fast and easy.
Refinancing an auto loan can be a better loan choice over taking out a small personal loan if you need money.
Self Employed Loan Application For Auto Refinance, Car Purchase or Auto Leasing >>>
Auto refinance loans are a convenient way to consolidate debt or:
- get money for home improvements.
- Pay for weddings or vacations.
- Get a better APR than on the existing loan.
- Start or upgrade your business.
- Pay for an attorney and court fees.
Auto Financing For Self Employed 1099
If you are self-employed, you will need to provide your 1099 tax returns for the past few years
Besides your 1099 forms, your tax returns must show that your income is enough to carry the car note and that the income is steady over time.
If you own your own business, you likely write off many of your expenses as deductions to reduce your taxable income. This practice keeps money in your pocket at tax time but may make obtaining a “self employed car loan” a bit more challenging.
With a credit check inquiry, the lender could see that your credit worthiness is low due to low recorded income. This is why it is important to report a correct income amount on your taxes to keep a strong credit rating.
Emergencies can also arise where you may need a secured loan to purchase unexpected needs. An auto accident that has left your car totaled could put you in a situation where you did not prepare to qualify for an auto loan, but now it is necessary. Car buyers having a good credit rating with acceptable credit scores will depend on good income records from your self employed business.
Self employed bad credit loans are harder to get because you have to show steady income for several years. When you complete the loan application for a car loan for self employed, you will show your net income. Keep in mind that the salary you pay yourself is generally what will qualify you or disqualify you for the loan.