How a Low Doc Car Loan Can Be Great For a Small Business Or The Self Employed
Not everyone has a steady income like regular employees. If you are a small business owner or self-employed individual, you might find it difficult to access certain financing options because of your irregular income each month.
For the people with an irregular stream of income who want to get a car for business or work purposes, a low doc car loan might just be the hero you’ve been waiting for to save the day.
What is a Low Doc Car Loan?
A Low Doc Car Loan is similar to most auto loans except that fewer financial documents are required. It is applicable to individuals who don’t have a regular income, like entrepreneurs, freelancers, contractors, and self-employed persons, who like to purchase a vehicle to be used more than 50% of the time for business or work. Loanable amounts are up to $100,000 and are payable up to seven years.
Lenders are at more risk to business loss when giving low doc car loans. That is why they give interest rates and fees that are much higher to compensate for the risk of lending to a financially unstable client.
How to apply for a Low Doc Car Loan?
Find a lender that offers competitive rates for a low doc car loan. You can visit the lender’s website or call a loan agent to initiate the application. You will need to fill out an application form and provide some personal and financial information like the following:
- Name, address, and proof of identification
- Business details (If the car is applied for a business)
- Assets, liabilities and other finances (for self-employed and freelancers)
- Car value and other details
- Proof of Insurance for the Car
Lenders will not ask for any proof of income but may require other documents to determine your true financial situation.
What to Consider before Applying for this Loan?
Since low doc car loans generally have higher interest rates, you must consider all your options first before applying for it. Firstly, make sure to shop around with different lenders to compare rates, fees, charges, and terms. Try to negotiate for the best loan deal, including the repayment options.
Secondly, check for certain restrictions that the lenders impose with the low doc car loan. For example, some lenders may only give a loan amount equal to the price of the car and no more than that. There are lenders that do not allow additional repayments, but some may permit lump sum payments. Ensure that the loan terms fit your financial capabilities.
Lastly, think about your personal financial situation before you apply for a low doc car loan. An irregular income can greatly affect your ability to make repayments. You must carefully consider the possibility that your other assets might be at risk if you fail to pay for the loan. Calculate for the monthly repayments and decide if this is something you can afford or not.
Low Doc Car Loan at Aussie Car Loans
Aussie Car Loans offers low doc car loan with flexible documentation and financial verification requirements for a more accessible car loan option for self-employed individuals and owners of small businesses.
Contact us now at 1 300 769 999 or submit an application to get started.