Some people are born to be self-employed. It can give you professional freedom, and allow you to take your own route in discovering the potential profitability of a passion or talent.
In the modern world, it’s also likely to add up to a lot of hours on the road visiting clients, assessing manufacturing centres or attending conferences. These miles are much easier to cover when you have the right vehicle for your business, however the difficulties of securing finance for a new car when self-employed are well documented.
Why do self-employed people struggle to obtain car finance?
In short, self-employed people often struggle to secure an adequate financial package with which to purchase a new car because finance companies are frightened of irregular income.
They’re looking for people with a steady, predictable income, regardless of whether yours has only been affected by a temporary financial situation, such as the purchasing of additional assets or securing of new premises. As a result, they will want to see payslips and/or account details stretching anywhere up to three years in advance of the request being submitted.
The irony is that a small business owner may have a harder time securing finance than their employees, while even self-employed people at the top of their industry can often find it difficult to secure the deal that they need.
HMRC: playing by the rules
Self-employed drivers need to be aware of the rules that HMRC has set out about claiming motoring expenses: “If a vehicle is used for both business and private purposes then the capital allowances and the total running expenses will be split in proportion to the business and private mileage. You will need to keep records of your total mileage and the number of miles travelled on business to calculate the correct split.”
The Inland Revenue is typically strict in terms of the records required to prove business use and general upkeep, so you’ll need to make sure that you keep all records relating to:
- Insurance costs
- Road tax rate
How Perrys do things differently
Though it might seem that there’s too many hoops to jump through before investing in a new vehicle, there is a simpler answer; come down to your local Perrys dealership and see what we can offer.
At Perrys, we approve 90% of finance applications for specialist cases, such as self-employment. Our services are highly flexible and require checks that are far less intrusive than the banks. We understand that everyone leads different lives and will take a consultative approach to finding the finance option that’s right for you.
We work with a whole range of the country’s top lenders, which enables us to find the best options for self-employed people, even if you’ve been refused finance elsewhere. We keep a close eye on who is providing the market with the best rates, and our status as a trusted national retailer means that we can get leading rates from banks including Santander, Barclays and Hitachi.
Perrys offer four main financial options to ensure that you can find a deal to match your circumstances. The options include:
- PCP Finance
- Lease Purchase
- Hire Purchase
- Personal Loans
We can also help you cover the cost of maintaining your car over time by dividing your payments into a manageable monthly sum as part of the Perrys Easy Drive Service Plan.
We always aim to be sure that we’ve put the right person with the right car at a realistic rate, so we’ll need to have a quick and non-invasive look at your credit score. We can find options for people with most types of credit score without needing to dig into your personal circumstances. Instead, we recognise the person behind the credit score, and will continue to work with you to resolve any financial concerns relating to the purchase of your new car.
How to get started
With Perrys, it’s easy to get set up and find out how we could help you secure the car finance that you need. Simply fill in our online application form and we’ll review your details and get back to you with a quote. Or, stop by your local Perrys dealership and we can discuss which finance option is right for you. Provided you meet the relevant criteria, you could be driving away on the same day.
The benefits of buying a car with Perrys when self-employed are clear. We can help you save money, avoid overly-intrusive checks and have you driving off the lot on the same day. So, why not start thinking about taking your business to the next level with a vehicle that enhances your brand?
For more information on the Perrys car financing or any of our new cars, contact the experts at your local Perrys dealership today.