Low Doc Car Loans: A Car Finance Solution for the Self-employedApplying for car finance can be tough when you are self-employed or an entrepreneur. Usually car financiers require two years of tax returns before they will even look at your application, but this becomes problematic when you’ve only been in business a short time. Even if you are in a good financial situation, you may be seen as a risk by a lender if you don’t have all the right financial paperwork.
Thankfully, low doc car loans make things a lot easier for those who are unable to prove stable income over the past couple of years, without all the usual red tape.
If you need a new car for work purposes but aren’t able to gather all the documents that you would need to present for a regular car loan, then a low doc car loan could be the solution.
What is a Low Doc Car Loan?
A low doc car loan is a flexible solution for contractors, freelancers, or small business owners who hold an ABN but do not have a steady income. It allows you to get finance for a car that you are going to be using for more than 50% business use, with repayment terms of up to seven years at fixed interest rates.
Since you don’t need all the usual financial reports to get your car loan approved, you can spend less time stressing over documents and more time concentrating on the day to day running of your business.
What documents do you need?
- Declaration of income
- Application form
- Proof of identification
- ABN / ACN
- Trust Deed or Partnership agreement (if applicable)
For speedier approval, you can provide a deposit for the loan or use an asset as security. Lenders may also ask for a credit check and employment history.
Important to know
- It is really worth considering your ability to pay back the loan before applying. This would normally be assessed when applying for a regular loan, but without all the information required to do so, it’s up to you to decide what you can and can not afford.
- Sometimes lenders will impose restrictions on repayment terms. Even if you’ve had a great financial month, you may not be able to pay more on your loan.
- Since low doc car loans carry a lot more risk to the lender, higher interest rates and fees are sometimes charged. At Auto Car Loans, we try to keep things as low as possible, and we do have some low doc products with very competitive rates.
How can you apply?
Our team at Auto Car Loans can answer any questions you have about low doc car loans and assess your eligibility. Please feel free to contact us today on 1300 301 051 and we’ll happily get your application under way.
DISCLAIMER : The thoughts and opinions conveyed on this website are those of the authors only and are of a general nature. This does not constitute financial or general advice to you from Auto Loans Group. You should seek your own independent advice from a professional which is specific to your circumstances before considering any of the items referred to in this article, including finance, insurance, and car buying.