Self-Employed Car Finance

Q: What documents do I need to apply for car finance if I’m self-employed?

Most lenders will ask for:Proof of identity and address.Bank statements (usually three months’ worth).SA302 forms or tax year overviews.Business accounts (if available).

What’s your monthly budget?

Rates from 9.9% APR. Representative APR 13.9%. We are a credit broker, not a lender.

Representative example: Borrowing £7,500 over 60 months with a representative APR of 13.9%, flat rate of 7.25% and deposit of £0.00, the amount payable is £170.98 per month, with a total cost of £2758.68 and a total amount payable of £10,258.80.

Make your car finance work for you, too

Being self-employed doesn’t mean you can’t get car finance. Whether you’re a sole trader, freelancer or small business owner, we can help you find a tailored finance plan to help you spread the cost of a car.

Can you get car finance if you’re self-employed?

You might’ve heard it’s tough to get car finance when you work for yourself, but in reality, self-employed people can get car finance just like anyone else. Lenders will want reassurance that you can afford the repayments, so they’ll often ask for extra evidence of income, but as long as you can show proof of a steady income stream, you should get the green light to find an affordable finance plan.

How does self-employed car finance work?

The self-employed application process is more or less the same as it is for employed applicants. In most instances, you’ll just need to show a few more documents to get things over the line:

Pick from our new range or thousands of in-stock used options.

We offer a variety of personal and business options for self-employed customers.

This is where the extra checks come in – you’ll typically need to show documents like your recent bank statements, SA302 forms and tax year overviews.

Choose the deposit amount, contract length and mileage allowance (if relevant) that work for you.

Choose how much you pay up front, then enjoy steady monthly rates for the duration of your deal.

Types of self-employed car finance

You’ve got a range of personal and business options available to you when financing as a self-employed person, including:

Personal contract purchase (PCP)

Hire purchase (HP)

Similar to PCP but structured to take ownership of the vehicle (rather than have the option to) at the end of the deal.
Choose a contract length and upfront deposit amount.
Fixed monthly payments for the duration of the deal.
Own the car at the end of the deal with no large balloon payment to pay like with PCP.

Conditional sale (CS)

Very similar to hire purchase, but with no additional fees or admin requirements to own the vehicle.
Choose a contract length and upfront deposit amount.
Fixed monthly payments for the duration of the deal.
Ownership of the vehicle is transferred upon the final monthly payment.

Business contract hire (BCH)

If you need help figuring out the right plan, want to weigh up business versus personal car finance, or have any other questions about next steps, just get in touch.

The benefits of car finance for self-employed drivers

Financing comes with several advantages for self-employed applicants:

You can finance a car without tying up large sums of money in the contract, letting you free up cash flow for other priorities.

Customisable deposit options and a fixed monthly payment structure help you to keep your spending steady.

Flexible contract terms keep you in control of the important elements of your deal.

No-deposit options allow you to get your car today and not pay anything for 30 days.

You’ll have access to a complete range of new models and thousands of quality used vehicles.

There are potential tax benefits for VAT-registered businesses, should you go for a business finance deal.

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

Getting self-employed car finance with bad credit can be challenging, as lenders tend to look for evidence of stability when considering applications. However, bad credit and zero deposit finance is what we specialise in, and we’ve helped thousands of people – self-employed or otherwise – find affordable finance deals over the years.

We work with a panel of lenders that offer the best chances of approval for bad credit applicants, so whatever you’re worried about – be it past financial struggles like CCJs, IVAs or bankruptcy, or a previous car finance issue like a refused application or negative equity – we’re in a great position to help.

The best place to start is our two-minute, no-impact eligibility check.

Why choose Hippo for self-employed car finance?

We’re one of the market’s leading bad credit specialists, and have helped thousands of customers with poor credit find a deal that works for them.

No-deposit options are available across our entire range, meaning you don’t need to pay anything for 30 days if you’d rather spread the cost.

You can find out in as little as 30 minutes** if you’re likely to be approved for credit with our free soft credit check.

New, used, bespoke – whatever you need, we can help you find it.

Every customer gets a dedicated account manager to guide them through their finance journey.

Get any brand new car delivered to your door for free.

Take a look at why we’re rated ‘Excellent’ on Trustpilot.

Get the right car for the job today

Finding finance when you’re self-employed doesn’t have to be difficult. Between an amazing choice of cars, a complete range of flexible finance options and dedicated support for every applicant, no matter their budget or financial background, we can help you find a self-employed car finance deal that works today.

The journey starts with our fast, free, no-impact eligibility check. It takes two minutes to complete and will let you know if you’re likely to get finance with one of our lenders without affecting your credit score.*

Self-employed FAQs

What documents do I need to apply for car finance if I’m self-employed?

Most lenders will ask for:

Proof of identity and address.
Bank statements (usually three months’ worth).
SA302 forms or tax year overviews.
Business accounts (if available).

Can I get car finance without three years of accounts?

It’s certainly possible. Some lenders will request extended proof of your financial history, but others will consider applicants with just one year of accounts. It depends on the lender, your credit profile and the stability of your income.

Will being self-employed affect the type of finance I can get?

Not usually. Major finance options like PCP, HP and conditional sale are all available to self-employed drivers – as well as business finance agreements in some cases. The difference in self-employed car financing lies in how lenders assess your income rather than in the availability of the finance products themselves.

Can I finance a car through my business if I’m self-employed?

Absolutely. It’s pretty standard for self-employed people to finance vehicles through their business. VAT-registered businesses can benefit from tax breaks, too, depending on how the car is used.

What if my income varies month to month?

This is common for self-employed workers, so it’s not something to be too worried about. Lenders usually assess affordability based on your average income over a set period, using documents like your bank statements and tax returns to get a reasonable overview of your finances.