How Self-Employed Car Financing Works

Self-Employed Vehicle Financing

Being self-employed does not prevent you from getting vehicle financing. However, the documentation requirements may be different from those for traditional employees. Participating dealers understand non-traditional income and can review your situation accordingly.

What You May Need

When applying for vehicle financing as a self-employed applicant, participating dealers may request:

• Notice of Assessment (NOA) — Your most recent tax return showing declared income
• Business financial statements — If you operate an incorporated business
• Bank statements — Business and/or personal bank statements showing income deposits
• Business registration — Proof of your business registration or articles of incorporation
• T1 and T2 tax returns — Personal and corporate tax returns for the past 1-2 years

How Income Is Assessed

Self-employed income can fluctuate from month to month. Lenders typically look at your average income over the past 1-2 years rather than a single month. If your income has been growing, some lenders may consider the upward trend.

Tips for Self-Employed Applicants

• Keep your finances organized — Clear separation between business and personal finances helps
• Prepare your documents in advance — Having your NOA and bank statements ready speeds up the process
• Consider a co-applicant — A co-applicant with traditional employment may strengthen your application
• Be realistic about your budget — Factor in the variability of self-employed income when choosing a vehicle

Applying Through YourApproval.ca

Complete our secure online application with your employment and income information. If you have a co-applicant, you can include their information in the application. The application takes approximately 2 minutes.

We do not guarantee approval. Our role is to connect you with dealers who can review your individual situation.