Looking to finance a new car but am self employed

oblivion_flux

I've been looking to finance a new car after some ongoing car troubles with our current one. It would be myself and my partner as we share the car.

I've been self employed for just over a year, my partner is in full time employment. I currently have a loan with first direct that's about half way through so I gave them a call to restructure it but they've said as I'm now self employed, they want 3 years self employment history before going ahead which was a bit of a shock!

My partner has her half of the car payment in cash (she's very clever with her money and is in a well paying job, much more than I earn). I have a good income and my total credit at the moment is a loan, a credit card with a small balance and another card that has zero balance (emergency only).

We were wondering if we were to opt for a finance deal on a used car at a dealer, would they have as stringent requirements for finance as first direct did? Bearing in mind that we'd effectively have 50% deposit on a car. Alternatively should I look at another bank for a loan?

Rafter

Suggest if the loan is in joint names and given your partners earnings and lack of debt that you should be fine.

3 years is pretty usual for self employment to be honest - so you are better off letting your current FD loan run to term.

Car dealers might have access to loans with less stringent requirements - but you will end up paying for it through higher interest rates than FD are offering - even though the loan might be secured on the car and you are putting down a large deposit.

R.