Do I need a deposit for self-employed car finance?

Not always. Some lenders offer no deposit options, though putting down a larger deposit can reduce monthly payments and improve affordability.

What finance types can self-employed drivers consider?

Hire Purchase (HP) – fixed monthly payments until you own the car, or Personal Contract Purchase (PCP) – lower monthly payments with the option to return, trade in, or buy at the end. The right choice depends on your budget and whether you want to own the car outright.

How can I improve my chances of approval?

Check your credit report for errors, register on the electoral roll, tidy up recurring outgoings, prepare clear proof of income, consider a larger deposit, and be open to sharing data through open banking.

What documents might I need without payslips?

Typically you’ll need recent bank statements, proof of address, ID, driving licence, and employment details. Some lenders may also invite you to share financial data via open banking.

Can I get self-employed car finance with bad credit?

Approval isn’t guaranteed, but some lenders specialise in helping applicants with imperfect credit, including those with defaults, CCJs, or on a DMP or DRO. Decisions depend on status, affordability, and recent financial conduct.

Why is it harder to get car finance when you’re self-employed?

Lenders may view self-employed income as less predictable, so they look more closely at affordability and evidence of earnings. Clear bank statements, up-to-date accounts, and a stable trading history can help.

Can I get car finance if i'm self-employed?

Written by Louise Haines Updated 19 Sep 2025

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There are lots of perks to being self-employed; flexible work schedules, picking and choosing the jobs you take, and being your own boss are just a few. But the trade-off for these freedoms can sometimes be financial uncertainty. Unlike a 9-5 worker, you may not have a set payday and your salary could change every month. This unpredictability can make it tough for self-employed people to get car finance.

At Car Finance 247, we don’t believe that choosing a different career path should stop you from finding and funding your next set of wheels. And if you’re looking for self-employed car finance, we could help! Here’s everything you need to know about getting car finance if you’re self employed.

Why is it hard to get car finance when you’re self-employed?

Getting car finance could be tough if you're self-employed. This could be because lenders see your income as unstable, which can make them cautious.

When you’re employed by a company and have a set salary, lenders may have a better idea of how much money you’ll have and when. Self-employment is a little more complicated; there are no guarantees. Sometimes, you may have months where you work daily and get paid on time. Other times, projects slow down, and you could find yourself chasing late payments. That uncertainty might make some lenders more wary.

That’s why we work with a panel of trusted lenders to try and help people with a range of employment circumstances find finance. This may include self-employed, temporary, and agency workers.

Can you get a car loan if self employed with bad credit?

If you’re self-employed with bad credit and need a car loan, we may still be able to find you a deal. We understand that the unpredictable nature of working for yourself might make it tough to stick to payment schedules sometimes. If this is your situation and you’ve missed payments in the past, it doesn’t have to be the end of the road for car finance.

We work with a trusted panel of lenders, including some that may offer bad credit car finance to self-employed people. Some of our lenders also specialise in helping people in more severe financial difficulties get on the road, including if you need car finance on a DMP, car finance with a DRO, car finance with a default or car finance with a CCJ.

While we can’t guarantee you’ll be accepted, we’ll do our best to match you with a lender who may be able to offer you a deal. Credit is subject to status.

The best way to finance a car for self employed people

While it might be more difficult to find car finance when you’re self-employed, that doesn’t always mean it’s impossible! We’ll do our best to try and find you the best car finance for self-employed people from our lenders. You could also take a few steps to try and improve your chances of getting approved.

Tips for applying for self employed car finance:

Check your credit score

Regularly checking your credit score could be a good habit to get into, especially when applying for car finance. This could help you get an idea of your financial information before you apply, and you can check your credit report for any mistakes or errors that could be affecting your score. It could be a good idea to improve your credit score where possible before applying.

Prepare proof of income

As a self-employed worker, you might not have payslips to provide as proof of income. It’s important to let your account manager know which items on your statements are related to work, especially if you have several employers. You might want to do a quick banking check: cancel non-essential subscriptions, review monthly direct debits, and consider closing joint accounts with people who have a poor credit history.

Register on the electoral roll

One of the quickest and easiest steps to take to try and improve your credit score could be to get on the electoral roll. It’s free and allows you to confirm your name and address online. Lenders check the electoral roll first when deciding if you qualify for car finance. Being listed could improve your chances.

Increase your deposit

If you have a deposit available, putting down a larger sum upfront may not only reduce the amount you need to borrow but also help make it easier to find a loan. Don’t have a deposit saved? Some of our lenders may offer no deposit car finance options for self employed people.

Consider open banking

When you apply with Car Finance 247, you may be invited to opt into open banking. This helps give lenders useful insight into your financial history. They can find more recent information than what's on your credit report. Open banking could help support your application by giving lenders a better picture of your ability to afford and pay back a car loan.

Details and documents needed for self-employed car finance

When applying for self-employed finance with Car Finance 247, you may be asked to provide some of the following details and documents:

Personal details including your full name, marital status, date of birth, and address history
Employment details and history
Estimated amount you’d like to borrow
Email address and phone number
Driving licence
Proof of address
Proof of income

How to prove your income if you’re self-employed

Proving your income can be more difficult when you’re self-employed. What proof is required will depend on the lender. Some lenders we work with might ask you to provide bank statements or invite you to use open banking, which can help lenders understand your incomings and outgoings.

If you plan to use your car for business or you’re a driving instructor or taxi driver, we could still help – just let your account manager know.

Applying for car finance without a payslip

At Car Finance 247, we understand that if you’re self-employed or own your own business, you might not receive a payslip. The good news is that you could still secure a car loan without a payslip. You may just need to show proof of income another way, such as providing bank statements or using open banking. Credit is subject to status and eligibility.

Types of car finance you can apply for when self employed

At Car Finance 247, we could help you explore two main types of car finance:

Hire Purchase (HP) – HP car finance is a loan that’s secured against your vehicle. You’ll pay fixed monthly repayments until you reach the end of the agreement and then you’ll own the vehicle.
Personal Contract Purchase (PCP) – With PCP car finance, you don’t have to own the vehicle at the end of your agreement. Instead, you can hand it back, trade it in as a deposit in a new deal or pay the balloon payment to buy it at the end of your contract.

The best choice for you will depend on a few factors, like if you want to keep the car, and what you prioritise financially as a self-employed person. For example, if you’d prefer lower monthly payments but to pay more overall, or larger payments monthly but a lower total cost.

Why come to us for car finance if you’re self-employed?

A helping hand

At Car Finance 247, used car finance is all about helping people improve their everyday lives. We believe that everybody deserves a feel-good car buying journey. We’ll use our experience to try and find the best deal from our wide panel of lenders. Because when it comes to finding car finance, we go the distance.

Dedicated account manager

You’ll have a dedicated account manager on hand to help guide you through the process from start to finish, so there’s nothing to worry about. They’ll do the hard work for you, whether that’s helping you find your next car or tailoring your finance deal to suit you.

Get the best deal for your circumstances

Whether you need a car for work, sorting out the school run or getting that big boot for the big shop, we’ll work to find you the best deal from our panel of lenders. And, we’ll try and tailor your quote to suit your self-employed finances, even if you have bad credit. Credit is subject to status.

Disclaimer: Car Finance 247 Limited is a credit broker, not a lender. We work with a panel of lenders and cannot guarantee you’ll be approved for car finance. All finance is subject to status and affordability checks. We do not provide financial advice. Always consider your own circumstances and read the terms and conditions carefully before applying for any form of credit.