Question for the SP's..or anyone else who may know..

[MmmMilena]

Hey ladies!

I have a question.. it may seem silly, but I would really like some info. I am thinking of financing a new car. Now, how would this happen when I go to apply and you have to fill in employment information and earnings.. and then they have to do a credit check. Is it at all possible to finance a car (or anything for that matter..condo etc) while working only as an SP (no "legit" employment)?

I appreciate any information! ]

Milena

 

[tboy]

Hey ladies!

I have a question.. it may seem silly, but I would really like some info. I am thinking of financing a new car. Now, how would this happen when I go to apply and you have to fill in employment information and earnings.. and then they have to do a credit check. Is it at all possible to finance a car (or anything for that matter..condo etc) while working only as an SP (no "legit" employment)?

I appreciate any information! ]

Milena

Well, you have many options as to what you denote as your source of income. First off you are "self employed" and should be treated no differently than I was when I recently leased a vehicle (I'm a carpenter).

As a matter of fact, I don't recall them asking me what I did, just how much I made doing it. I remember when I refinanced my mortgage they asked for my last year's income tax summary sheet (the one rev can sends you after you've filed). They may ask this of you.

This is where it gets a bit tricky. As self employed people we tend to underrate our earnings for income tax purposes but when it comes to loans, mortgages etc, this can bite us in the ass.

More importantly than all that is the fact that have you ever borrowed before? For any reason? A prior history of borrowing and paying off a loan with no late payments etc will go far in insuring you get this one.

 

[K Douglas]

Hey ladies!

I have a question.. it may seem silly, but I would really like some info. I am thinking of financing a new car. Now, how would this happen when I go to apply and you have to fill in employment information and earnings.. and then they have to do a credit check. Is it at all possible to finance a car (or anything for that matter..condo etc) while working only as an SP (no "legit" employment)?

I appreciate any information! ]

Milena

Most financing companies will require proof of income - a paystub, financial statements or a notice of assessment. Of course they will also do a credit check on you. Now if you're really stuck you could always offer your services in exchange for approval jk
If you don't pass any of these criteria you could always go to the smaller dealers that do their own financing who will give anyone with a pulse some form of credit. Expect to pay higher rates however. Good luck in any regard!

 

[Boyscout352]

To qualify for a loan, or finance a car you do not necessarly have to be employed. Although proof of steady employment does help alot. There are other factors involved not just employment. You can even put down 'student'. Even if you have a good credit history of borrowing and paying back on time, also helps.

You have to financially demonstrate that you are capable of paying back the loan. For example, having enough money in your account, or declare any other liquid assets you own (stocks, bonds, trust fund, etc) to act as leverage, in case you default on the loan.

You do not necessarly have to finance through the dealer. You can also get a car loan from the bank, or if you qualify, get a line of credit. I won't go into details about interest rates, or financing companies, but as long as you are able to qualify for a loan or fianancing, and make the payments on time, it helps in the future if you decide get another loan, mortgage...

 

[Wyman]

Hey ladies!

I have a question.. it may seem silly, but I would really like some info. I am thinking of financing a new car. Now, how would this happen when I go to apply and you have to fill in employment information and earnings.. and then they have to do a credit check. Is it at all possible to finance a car (or anything for that matter..condo etc) while working only as an SP (no "legit" employment)?

I appreciate any information! ]

Milena

I am no accountant but being self employed wouldn't leasing be a better option couldn't you can expense the payments ?

 

[tboy]

I am no accountant but being self employed wouldn't leasing be a better option couldn't you can expense the payments ?

Well, if you purchase a vehicle you are allowed to write off or expense 20% of the value of the vehicle per year up to a max of 5 yrs. The difference with leasing is that you can expense the entire lease payment immediately.

Although you have to be careful and track your mileage because on the Rev Can form there is an area where you have to list the amount of personal/business use and have to maintain records to proove this amount. They work on a percentage basis ie: if you drove 800 km for business and 200 km for personal you only get to expense 80% of the vehicle costs (btw this includes interest, insurance, fuel, maintenance etc).

 

[Damondean]

There are some low end car dealers out on St. Clair West who will sell you a car even with iffy credit histories and let you pay weekly. The car is equipped with a device that requires a code every month. If no payments are made, no code and you can't use the car. Of course, insurance is a whole separate issue . . you might look into zip.cars.com or carshare.com. They are rental companies that have cars parked in various neighbourhoods. Once you sign up, you don't have to go through the paperwork every time. You rent by the hour.

Many people who have never owned cars are not aware of just expensive a proposition that is.

 

[hoser1970]

Hey ladies!

I have a question.. it may seem silly, but I would really like some info. I am thinking of financing a new car. Now, how would this happen when I go to apply and you have to fill in employment information and earnings.. and then they have to do a credit check. Is it at all possible to finance a car (or anything for that matter..condo etc) while working only as an SP (no "legit" employment)?

I appreciate any information! ]

Milena

It depends...do you declare your income for tax purposes? If not, then you will likely be unable to claim a monthly income figure from your main source of employment. If you declare it, you will be asked to provide confirmation.

If you cannot use this, as someone else mentioned, you may still be able to qualify provided you could demonstrate some other way in which you would be able to repay the loan (ie. funds in a bank account, etc), but in all likelihood, if you already had the money in a bank account, why would you want to finance the purchase?

Despite what one poster mentioned, in the majority (95%) of the cases, if you cannot demonstrate you have sufficient income to cover the monthly payments (plus your other expenses) you will not qualify from any mainstream lender (this includes banks, car finance companies such as gmac, etc). All this leaves you are the "alternative" lenders who will charge you a significantly higher interest rate to compensate for the additional level of risk they are assuming.

 

[goodtime]

Either way you look at it, owning a car is expensive. This for me will be my first car and I am 21, so insurance is sky high. I have already contacted brokers and got varying insurance rates for the same car! You would be suprised how big a difference there can be between one broker and another.

For reduced rates, try "occassional use" category, if driving for the rare trips (low km). Where your mailing addr also affects the rate. Lower premium outside of GTA, less stolen cars & accidents for lower rates.

To compare online rates, try
http://www.kanetix.ca/auto-insurance

 

[DoingWhatIDoBest]

Right now I am in the boat as you are. However I am stashing money away to pay for the car in full. I am also doing research on the costs related to owning a car.

Kacy, just watch it though. If you purchase a car in full, stay away from Regular dealerships if it's a large purchase. Got a story about one girl I knew who walked in to buy a Mercedes and left in handcuffs because she was paying in cash and the dealership called the cops. Keep to private sellers or small used car dealerships. If you go high end and large dealership, pay a down payment and finance the rest even if you have the whole amount. They will tell you how much they will need down to qualify (high) but no red flags will be raised as much.

 

[goodtime]

To counter money-laundering, there is a law to disclose cash transactions over $30K, may be lower now with recent counter-terrror agreements.

Way around that is break it up into installments. Not uncommon for new immigrants without N. America credit history to make large purchase this way.