First car financing/employment question

[EnderZaMan]

Hey guys,

I had a question.

I'll be financing a car within the next 2-3 months, just building up a large deposit.

I work as an Independent Contractor for an American company. I have a signed contract which gets renewed every year.

I believe I will have to finance in person so I can explain my working situation completely.
Since when I do financing online, they request company details, and it doesn't usually allow me to enter American company details, such as address and phone number.
Also, I don't receive a payslip, as those are for employees. I do have a pay stub that summarizes the pay cycle (I get paid fortnightly.)


I was wondering, am I classified as Contractor or Self-Employeed in this situation?

I want the best possible chances to get financing and a lower rate. But I also don't want to give wrong information.

I already have a clothing account and credit card which I have been building up from November. I am in a favorable score.

 

[Greg C]

Hey guys,

I had a question.

I'll be financing a car within the next 2-3 months, just building up a large deposit.

I work as an Independent Contractor for an American company. I have a signed contract which gets renewed every year.

I believe I will have to finance in person so I can explain my working situation completely.
Since when I do financing online, they request company details, and it doesn't usually allow me to enter American company details, such as address and phone number.
Also, I don't receive a payslip, as those are for employees. I do have a pay stub that summarizes the pay cycle (I get paid fortnightly.)


I was wondering, am I classified as Contractor or Self-Employeed in this situation?

I want the best possible chances to get financing and a lower rate. But I also don't want to give wrong information.

I already have a clothing account and credit card which I have been building up from November. I am in a favorable score.

If I was doing your assessment for a vehicle as a starting point would probably be self employed, due to the nature of how your cash flow comes in

With that being said this is quite a simple and direct question

You seem to have applied for a vehicle before with similar.
What did you present to the bank as proof of income?
an ITA34 tax assessment? Bank statements?

I would be a betting person that you would need to actually speak to someoene to do the application on your behalf to not only understand your application but put in the proof of income

They will take a slightly more negative view so I will be most interested in finding out what you do eventually get in terms of a rate. I wouldnt put you below prime +2 but hey I may be wrong

Good luck with the application

 

[DrJohnZoidberg]

You're self-employed for their perspective. This does make things a little more difficult.

How long have you been with the company? They'll just want to see steady income on your bank statements.

 

[EnderZaMan]

If I was doing your assessment for a vehicle as a starting point would probably be self employed, due to the nature of how your cash flow comes in

With that being said this is quite a simple and direct question

You seem to have applied for a vehicle before with similar.
What did you present to the bank as proof of income?
an ITA34 tax assessment? Bank statements?

I would be a betting person that you would need to actually speak to someoene to do the application on your behalf to not only understand your application but put in the proof of income

They will take a slightly more negative view so I will be most interested in finding out what you do eventually get in terms of a rate. I wouldnt put you below prime +2 but hey I may be wrong

Good luck with the application

I started with Markhams, which allowed me to put myself as a contractor, I gave them my contract, as well as bank statements and they, were happy.

Red flag incoming........ I am still yet to register for tax, but that will happen sometime this month.

As for the credit card, as long as I had a credit record they were more than happy to accept my application.

The next step is the car I guess, but I need to make sure I provide the correct information as this is a larger application.

You're self-employed for their perspective. This does make things a little more difficult.

How long have you been with the company? They'll just want to see steady income on your bank statements.

I've been with them for around 9 months, not too long, but my contract is set to be renewed.
I believe I should go with self-employed too as my income fluctuated near to zero as I was traveling for a month or two during those 9 months.

 

[Private Assist]

Based on your current situation, it would be simpler to apply as Self employed.
The bank will only finance you for a year at most due to your contract only being valid for that long. Also due to you not having any payslips, the bank wont have sufficient information to validate your income.

Load yourself as Self employed, provide 6 months bank statements and the bank will take the average.

As per your interest rate, this will not be affected by the type, location or name of your employer.
Your interest rate will Vary depending on your credit scoring, affordability, vehicle and other personal information.

laying down a deposit will also decrease risk in the background scoring of the application which can lead to a Lower interest rate and approval.

We Assist with vehicle Finance applications in unusual cases such as Non-SA citizens, Uber finance and similar ones to yours.

We will gladly submit, motivate and negotiate your finance application. (no need for Face-to-Face).
Visit: www.privateassist.co.za or contact 0729098793

regards,

Private Assist Team