The questions never strike me, but a quite few have asked me these...
- Can you still get a loan? You're unemployed
- Why are you still looking at cars at these price range? You're unemployed.
Firstly, I'm not unemployed, I'm self employed.
Secondly, while I may not have a stable flow of income, I still have sufficient income to support my current lifestyle and commitments, otherwise I won't be able to sustain for the last 1-2 years.
Still, applying for a loan is quite different. It was so much more simpler then, being a salaried worker, where all you need are last 6 months pay slips and bank account statements to prove your steady income flow.
Being self employed, especially smaller business with lesser transactions, 6 months bank statements may not be enough to prove that there are have sufficient income flow to service the loan. Basically, the bank will evaluate your overall financial status eg other loans, credit cards, property ownership and/or rental income if any, etc.
I had to submit prove of my company registration, company account statements, personal account statements, other relevant documents to prove that my other loan commitments are taken care of.
My loan was approved :)
So, what it means is, the criteria of getting a loan doesn't solely depend on one's employment status. More importantly, we should maintain healthy repayment habits. I.e. Pay loan repayments on time, clear credit cards bills every month and on time, etc.
*Touch wood* I'm still able to maintain those habits so far :)
As for, why I didn't opt for a more economical option eg a lower price range car? Hmm..I think I 'll have to address that in another post. It's complicated. Think..in between, comfort, safety, money and err...of course status and / or style.
It's a matter of which is more important. The accident is still very fresh in my memory. The loud and strong crash, the impact, the pain, the shock. I still jump at the slightest sound of honk or when a car comes too closely to my car. While many may argue that life and death are beyond our control, I don't mind spending more on a better car even if it means letting go of some other luxuries in life.
Yep, people has the misconception that if you are not employed by a corporation, company, etc means you are not employed. A HH once told me, you cannot be so choosy and so demanding on the salary package coz now you don't have a job and your bargaining power is weak!!!
ReplyDeleteBut I do agree that it's trickier when it comes to getting a loan. Glad that yours are all sorted out. Now waiting to ride in the new car :D