Car loan for the self-employed – unbureaucratic & fast

Independent representatives live from presenting their retail products to customers. Nevertheless, car loans are no longer a matter of course for the self-employed. Even with obviously good income, many banks do not offer a flat rate loan. It used to be different.

The Basel 2 agreements are the reason for the clearly recognizable disadvantage. This does not affect large medium-sized companies or even corporations. No, from company sizes of around 500 employees, banks even bring credit by wheelbarrow. Proof of income is no longer a problem only for large companies. All of this was regulated in the sense of credit security. Minimum standards must apply so that banks can trade loans internationally without risk.

The little ones fall through the notches, as always in life.

No credit with BWA – what now?

No credit with BWA - what now?

The car loan for the self-employed with BWA and full order books is a dream in most cases. Vehicle leasing offers the alternative so that demand can be met quickly.

What is particularly advantageous about this version of vehicle financing for the self-employed is the deductibility of the leasing installments. After all, leasing means nothing more than renting.

Only the desired vehicle is rented reactively cheap. At the same time, however, there are also tangible disadvantages. No property is acquired by leasing the vehicle. The entrepreneur is fixed during the leasing period.

He cannot simply sell the car and redeem the loan, as with the auto loan for self-employed people to buy a vehicle. But, after the leasing period has expired, there is a short window of time to act.

Most contracts allow the vehicle to be taken over at the residual value.

Finance the residual value – only lease then buy

Finance the residual value - only lease then buy

The desire to transfer ownership of a vehicle is understandable. Why should someone voluntarily pay rent when they can buy. This may be a disadvantage in tax terms, but the bottom line is that it works. Whoever comes into question as a lender often decides on the type of self-employment.

For example, the free sales representative will find several options. The tax office takes over the necessary proof of income for lending. The income tax assessment provides proof of self-employment income beyond any doubt. Some professions, such as doctors and lawyers, are even particularly “courted” freelancers.

Self-employed – personal loan

Self-employed - personal loan

Incidentally, “solo self-employed” are also generally permitted for carcredit. Credit portals nevertheless promise the much better prospect of credit.

For example, “credit-private” (from Cream Bank) could enable car loans despite income from self-employment. The admission requirements are extremely moderate. An application can be made from an income of 1000 USD.

The current interest rate level on private car loans – via Cream Bank – is also reasonably low. According to the 2/3 example of the PAngV, a car loan of EUR 16,000 for the self-employed – with a private credit – only costs 7.85 percent APR.

Financed with a term of 60 months, this corresponds to a monthly rate of $ 321.22. The alternative to this, even without a minimum income, would be Lite Lender.

However, the concession increases the cost of credit. According to PAngV, Lite Lender’s 16,000 USD car loan costs 18.4 percent APR.

The monthly rate gives the 2/3 example, again with a term of 60 months, at 397.72 USD.

Car loan – self-employed as a sideline

Car loan - self-employed as a sideline

There are advantages to doing “only” part-time self-employment. As a sideline, it can certainly be determined whether the final step into a self-determined professional life makes sense.

At the same time, the business model influences credit opportunities. Because not the income from self-employment, but income subject to social security, secures the credit.

The car loan for the self-employed can thus be financed from any source. The bank does not care what money the approved loan is paid for afterwards, whether from the company treasury or from a private account.

Secure lending, as provided for by law, enables income from dependent employment. Lending would even be conceivable with a temporary contract.

Vehicle loan – part-time farmer

Vehicle loan - part-time farmer

Most agricultural holdings in Germany are considered to be a “sideline”. Few farmers are few, although they live exclusively on their farm. Proof of income is particularly complicated because it is not the time of harvest every month.

Nevertheless, there are also solutions in this case that enable car loans for self-employed people with agricultural holdings. There are two ways of getting credit. On the one hand, a special agricultural loan. In contrast to “ordinary consumer credit”, different installments can be agreed.

Instead of monthly installments, only an annual installment is paid. This is how most tractors, combine harvesters and other agricultural vehicles are financed.

The alternative, so that ordinary bank credit is possible, is the car loan for self-employed in agriculture through additional property security. Because the farmer owns secure values ​​with his land. If necessary, selling a building plot is enough to immediately offset any car loan.

Additional protection – car loan with guarantor

Additional protection - car loan with guarantor

All problems with loans to the self-employed are based on the weak proof of income. The cat literally bites its tail at this point again and again. A solvent second applicant could, however, offer the way out. In this case, of course, someone who is in safe, permanent, dependent employment.

Since the second applicant shows sufficient income, the loan approval is not a problem. All banks are also eligible. Who then pays the approved car loan for the self-employed is not so important. The main thing is that the installment is paid on time. Basically, the second applicant is only needed to provide proof of secure income.

Conclusion – car loan for the self-employed

Conclusion - car loan for the self-employed

The desire for a car loan with proof of income from self-employment is not always easy to fulfill. But, finding a loan is not hopeless.

In most cases, a clever solution is to lease a new vehicle first. Tax benefits exploited.

In addition, the car loan for the self-employed only has to enable the vehicle purchase at residual value later on. There are also direct credit opportunities for bank loans, for example with “Barclaycard” and “carcredit”.

A loan from a private person, via Cream Bank or Lite Lender, could also enable vehicle financing. A second solvent applicant opens up further alternatives for self-employed car loans.

In addition, through high-paid property for securing loans.


Auto Loan – Optimal Solution For Used Car Buying

Just before the summer solstice, Good Finance’s client Liene Lapsiina took advantage of the bank’s credit and came to her dream car.

Liene has been wondering about the time to buy a newer and better car. The dream model Audi A3 was also watched. Liene cannot afford to buy a new vehicle yet, because she lives and earns one, and continues to pay off her student loan. But if a committed person has a dream, there is always the chance to fulfill it.

Leasing or credit?

Leasing or credit?

“At first I was thinking about leasing,” says Liene. “I went to the bank to get it done, but a bank representative assured me that in my case when I am not buying a new or used car, choosing a loan will have less valuation, and the machine will be mine and not the banks. I decided that this way would really be more convenient and beneficial for me. ”

Whoever searches, finds

Liene applied for an internet car loan of USD 6,900 for the car, which was the amount she was unwilling to borrow in the current circumstances and for which she could buy an Audi A3 under 10 years. But … there were no more offers on the market.

“After a long and almost hopeless search just before Midsummer, I finally found my dream car in Tukums. The seller was surprised that during the holiday, someone not only looks for but wants to buy it right away. All formalities are completed in one day. Choosing to lease would have taken longer. ”

Liene Lapsiņa is now the owner of the 2006 Audi A3. In addition, she managed to buy it at a significantly lower price.

Friendly refund rules

Friendly refund rules

Liene immediately refunded the balance – more than 1000 USD – to a bank which was very easy to do via Internet Banking. “As a result, my monthly payment has dropped significantly. I’ve been applying for a loan for four years, but I plan to redeem it faster using the flexible, free commission repayment options. I know I’ll deal with it. Of course, it is a responsibility – you have to expect a regular payment, but I am convinced that a bank representative will help me to find the best solution for me in any case. ”

Also, use your – car loan or consumer loan to buy a car

Also use you - car loan or consumer loan to buy a car

If you want to buy a used – and therefore cheaper – car, consider getting a car loan or a consumer loan, depending on the amount you purchase. It is most advantageous to do this through online banking.

Car purchase loan

• Loan amount: USD 3,000 – 12,000

• Maturity: up to 5 years

• Monthly income: from 600 USD per month (from 800 USD with guarantor, if any)

• Fee: 100 USD

• Interest rate: from 8% (determined individually for each client)

Learn More About Auto Loans!

Consumer loan for car purchase

• Loan amount: 500-3000 USD

• Maturity: up to 5 years

• Monthly income: from 252 USD after tax

• Fee: 2% of the amount (minimum – 20 USD)

• Interest rate: from 16% (determined individually for each client)

Learn More About Consumer Credit For Buying A Car!

In both cases:

• registration of the car in the name of the car borrower (registration must be done within 30 days of signing the contract);

• possible early repayment of the loan without commission;

• Loan terms can be easily changed via Internet Banking.