Income Verification When Buying A Car

If you are using a dealership to provide financing for a vehicle and you re asked to provide your bank statement you should provide it.

Income verification when buying a car. Usually a dealer asks for your bank statement to verify income or your cash on hand. The verification process is actually done by the lender and doesn t take long to complete. To prove your income in this case you need to provide your award letter from social security but you still may not qualify for an auto loan due to the fact that this income isn t garnishable. Another common question car buyers ask is how lenders verify your income and employment status.

But buying a car without proof of income can be accomplished through lenders that take other financial factors into consideration and proper preparation. Auto finance companies will require one of two types of paperwork to verify income. Additionally these lenders also require that at least a part of your income must be garnishable which ssi ssd and other tax fee sources of income typically aren t. Lenders use an e verify system to make sure that you re actually an employee of the place you listed as your employer on the application.

If your income varies by the month or year you can verify your income through business records the internal revenue service or online sources. When you apply for a car loan most lenders require proof of income. Make sure that you bring the appropriate documents with you to the car dealer when making a purchase. You can however provide your bank statement without providing too much of your personal information.

W2 earners should bring recent pay stubs or direct deposit statements while the self employed should bring two years of tax returns. If you are unable to provide that evidence because you don t have a job or are self employed your options are somewhat limited. Not all lenders will require proof of income but you re more likely to need it if you have a new job or have multiple sources of income. Method 1 of 5.

However it is still possible to buy a car even if you don t have proof of income when you follow some specific steps. Unless you can pay for a car in full you will need to get a car loan and most lenders will ask for employment verification.