Can I Get Car Finance Being Self-Employed?

Self-Employed Car Finance

Are you self employed looking for car finance? Getting accepted for car finance isn’t just about ticking one box. Lenders look at a few things, like your credit score, the car you want, how long you want to borrow for, and your job status. If you’re employed, you’ve got a regular income coming in, which usually helps your chances. But if you’re self-employed? It can sometimes be a bit more complicated. Not impossible, just different. Let’s break down why that is and how to give yourself the best shot at getting approved.
Get Self-Employed Car Finance Today

Can I Get Car Finance If I'm Self Employed?

You can! Self-employed car finance exists, and Marsh Finance are one of the few lenders that offer it. Try our easy-to-use calculator and see how car finance could look for you. 
Apply For Self-Employed Car Finance
A person sat at a table working, representing self employment and study.
A woman stood in thought against a teal/green background.

What Counts As Self-Employed?

There are over 3 million people currently self-employed in the UK.

Here’s a look at some of the roles that might be classed as self-employed.

👷 Tradesman: Electrician, Plumber, Bricklayer, etc.

🎨 Creative Design: Artist, Designer, App Developer

🚚 Service & Delivery: Delivery Driver, Personal Trainer, Dog Walker, Driving Instructor

This is just a handful of self-employed jobs, but nothing’s stopping these job roles from being approved for car finance.

In one of these jobs and unsure if finance is possible? Reach out for a free check with no impact on your credit score 👇

A 3D icon car with floating money behind it, representing the relationship between cars and finances.

What Types Of Self-Employed Car Finance Are There?

At Marsh Finance, you have a couple of finance options: Personal Contract Purchase (PCP) and Hire Purchase (HP).

PCP lets you spread the cost of a car over affordable monthly payments. At the end of the agreement, a final payment awaits you (balloon payment). At this point, though, you have the option to pay and own the car, return it, or upgrade it to something new. PCP agreements include a deposit option, plus mileage and wear-and-tear rules.

 

In an HP agreement, you’ll have the option of an initial deposit, followed by mandatory monthly repayments until the loan amount is paid off. Once this has been done, the car is yours. HP differs from PCP in that you automatically gain ownership of the car once repayments have been made. In PCP, you have the choice of returning the car or exchanging it for something else.

What Documents Do I Need For Self-Employed Car Finance?

For a self-employed car loan, the more documents you have, the better. As your earnings might not be set every month, having proof of financial income is key to your chances of being accepted for car finance. Here are some of the documents you could use to prove your earnings:

  • At least three months of bank statements.
  • Bills paid on time.
  • Tax returns.
  • Any earnings.

On top of this, you'll need:

  • Proof of identity.
  • Proof of address.
  • Credit score report. 
A 3d icon of multiple documents with a tick on.

Why Is It Harder To Get Self-Employed Car Finance?

Full employment jobs include a guaranteed weekly or monthly salary. This is a sign to car finance lender that you’ll be able to meet regular repayments. In the self-employment industry, sometimes salaries aren’t guaranteed, and this is a massive risk to lenders. The last thing a car finance lender wants is for you to miss a payment and fall behind, but this can sometimes happen with unreliable payment schedules.

We want to make it clear; this doesn’t mean self-employed car loans aren’t possible. It just means that extra checks are needed to ensure you can afford finance. If a lender is satisfied you can afford car finance, it doesn’t matter if you’re employed or self-employed.

Not many lenders offer self-employed car finance, but we do!

How Does Car Finance For Self-Employed Customers Work?

Apply For Finance

Apply online with our super simple form. In the form, you'll be asked to provide details like your name, address and occupation, to help us understand your finance needs.         

 

Income Checks

We'll run an automated income check. If this passes, you are ready to sign! If the check fails, you'll have to complete open banking and provide proof of tax returns.       

 

Off You Go!

Sign any contracts and provide required documents like your driving licence and you're good to go. Arrange pick up or delivery of your new wheels and hit the road.    

 

Two signs pointing in different directions. One with good credit and one with bad credit on, both pointing in different directions.

Car Finance For Self-Employed With Bad Credit

If you have bad credit as a self-employed person, car finance will be harder to get, but definitely not impossible. Here's why:

  • Bad credit. A bad credit score tells lenders you sometimes miss payments and aren’t responsible with money.
  • Self-employed. With no guarantee of weekly/monthly earnings, finance acceptance can be harder.

In saying that, lots of car finance companies provide bad credit support, including Marsh Finance!

Visit our bad credit page for dedicated support and guidance aimed at helping you get the car finance you’re looking for. 

How Self-Employed Car Finance Could Look

£2,000 24 months
Credit Score

How Your Finance May Look

Monthly Repayments: -
Best Available Rate: -
Total Cost of Credit: -
Total Repayments: -
Get My Quote
Get Self Employed Car Finance

How Can I Help My Chances Of A Self-Employed Car Loan?

💯 Take steps to improve your credit score:
 
 

Check your credit report for mistakes and report any that appear.

Check your credit report for mistakes and report any that appear.
Join the electoral roll to strengthen your identity check profile.
Join the electoral roll to strengthen your identity check profile.
Use direct debits to make sure payments are on time.
Use direct debits to make sure payments are on time.
Keep credit usage under 30% of your total limit.
Keep credit usage under 30% of your total limit.
Build a healthy payment record by adding your name to bills, taking out a credit card and making repayments on time.
Build a healthy payment record by adding your name to bills, taking out a credit card and making repayments on time.
Don’t apply for too much credit at once.
Don’t apply for too much credit at once.
A 3D icon house with a large brush above it and stars, indicating a house makeover and clean.

🏡 Get Your Financial House In Order

Make sure all outstanding debts are settled, and you have enough money set aside a month to make repayments.

📃 Get hold of as much proof of financial earnings and security as possible.

  • Get copies of bills that have been paid on time.
  • Collate bank statements.
  • Consider open banking to increase transparency of your finances.
  • Make sure all tax returns are up to date and you have proof of this.

💸 Place A Deposit To Show Your Intent

What better way to show your commitment to repayments than a large deposit? This not only shows your intent but also removes a good chunk of what’s owed, bringing down monthly payments.

Top Tip: Do not place a deposit so large that you end up in financial difficulty. While a large deposit can be enticing, don’t leave yourself short for change down the line.

A toy car on top of a stack of coins, representing finances and cars.

 

Here at Marsh Finance, we’re committed to helping you secure your car dreams. Reach out and we’ll assess your options, employed or self-employed.

Get Self-Employed Car Finance Today!

Self-Employed Car Finance FAQs

Are there car loans for the self-employed?

Yes, you can get a car loan if you’re self-employed, but the process might be slightly longer. This is because you’ll need to provide extra documents to prove your financial strength, to make up for no proof of guaranteed monthly earning.

Can the self-employed get car finance?

Yes, the self-employed can get car finance! The process might be slightly longer than normal, because you’ll need to provide extra proof of your financial ability to make repayments.

Is self-employed, no proof of income, car finance available?

Having no proof of income makes self-employed car finance tricky, but not impossible. To get car finance with no proof of income, you’ll need plenty of proof that you have enough money in the bank to make repayments, and that you aren’t spending excessive amounts of month that will leave you struggling in future.

Can self-employed people get PCP or HP Finance?

They can. Both PCP and HP finance are available to the self-employed.

PCP is a good option if you want flexibility at the end of your agreement. HP is a good option if you’re set on owning your car at the end of the finance agreement.

Does being self-employed affect my car finance interest rate?

There’s a chance that being self-employed can increase interest rates, as lenders look to offset the risk of financing to someone with no guarantee of earnings.

Can you get self-employed car finance with bad credit?

Self-employed car finance is possible with bad credit, but you may face higher interest rates and larger repayments. If you want to improve your chances of better car finance terms, look to improve your credit score. Here are some great tips to get the jump on your credit score:

  • Check your credit report for mistakes and report any that appear.
  • Join the electoral roll to strengthen your identity check profile.
  • Use direct debits to make sure payments are on time.
  • Keep credit under 30% of your total limit.
  • Build a healthy payment record by adding your name to bills, taking out a credit card and making repayments on time.
  • Don’t apply for too much credit at once.

Visit our bad credit car finance page
to learn more and see how we can support you in the car finance process, no matter your credit score.

Is there Guaranteed car finance for the self-employed?

There is no guarantee of car finance for the self-employed. If you see an advert for guaranteed car finance, treat it with caution.

Back to top