# Car financing income verification



## EaglesFan (Mar 10, 2015)

I know absolutely nothing about car financing, I've always bought cars cash in the past. I plan to make this move in 2 months but I want to plan ahead.

I'm planning to buy a used 2016 rental car with about 40k miles. With taxes and other stuff included it will probably come to about $11k. I plan to pay $3k down and take a 48 month loan. My credit score right now is about 690. I have no delinquencies but I do have a relatively high credit card utilization cause of some stuff that happened in the past. I've been paying it down. I've also only ever had 1 credit account in my life and that's my credit card but it's been open more than 10 years.

Having said that I'm self employed (mostly NON Lyft/Uber but I do that too) but my income is hard to prove. I've also read that banks don't want to see that you might use the car for uber/lyft since that depreciates it and makes it less valuable as collateral. So my question is are they likely to ask for proof of income? Would I be able to get a no proof of income loan? Would the rates be decent? What would be the best route to take?

Thanks


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## jgiun1 (Oct 16, 2017)

EaglesFan said:


> I know absolutely nothing about car financing, I've always bought cars cash in the past. I plan to make this move in 2 months but I want to plan ahead.
> 
> I'm planning to buy a used 2016 rental car with about 40k miles. With taxes and other stuff included it will probably come to about $11k. I plan to pay $3k down and take a 48 month loan. My credit score right now is about 690. I have no delinquencies but I do have a relatively high credit card utilization cause of some stuff that happened in the past. I've been paying it down. I've also only ever had 1 credit account in my life and that's my credit card but it's been open more than 10 years.
> 
> ...


The only way your getting no proof of income loan is with nearly perfect credit, 100% flawless.
I went to several dealers and it was hard to get a loan, not lying. I got advice from a friend who's a business owner (has three cars financed currently with perfect credit and no income verification). He said on application, put self employed driver and not Lyft/Uber in any shape or form to any part of the application you fill out. This is kinda where it gets weird....I did that exactly, wrote self employed driver and handed over four months of bank statements and boom, approved in fifteen minutes.

The part that's weird....on all the bank statements, it will show by name lyft and uber for deposit. The dealerships will print them up and go through every single deposit item and highlight the driving deposits before sending over to the banks.

I don't know how listing self employed driver on application and still having to show deposited money with four months from bank statements from lyft and uber's name right on the deposits made a difference, but it did.

****Just make sure you have four straight months of bank verified statements before even going to dealer.****

Good luck....many of the big auto dealers didn't want to deal with the income verify crap work associated with self employed driving and banks are strict for the depreciation factor.

I went to a small dealer, and drove off in two hours of basically got approved for anything I wanted on the lot. I'm not going to lie, it will be hard, but it can be done, but you need to find the right dealership with the right list of banks they work with that deal with full time rideshare income.

I suggest calling first, ask salesman about speaking to finance department for rideshare approval.


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## fennec2009 (Dec 18, 2017)

You could try CarMax. I had one of my parents co-sign my loan and I have an extremely high credit score, so not exactly the same situation, but I brought in all my bank statements and settlements from my three IC positions and they looked at absolutely none of it. Just took our word as far as our incomes and got approved almost instantly by their in house financing at 3.45% APR. I figured maybe it was my high credit score...but I don’t think they even ran my credit until after I gave them my income, and still they never asked for any proof.


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## EaglesFan (Mar 10, 2015)

Thanks for the replies.

*Jgiun:* When you said it's real hard to get a no income verification car loan was that true also though if you put a lot down and pay it off quickly, in addition to having a good but not perfect credit score (690). I was thinking of putting $3k down on $11k loan and paying it off in 48 months. I only Lyft about 10 hours a week (most of my income comes from other sources but they are really hard to document) so I'd probably never be underwater on this loan so I would think that would make it very low risk for a bank. But I figured it's not a good idea to mention Lyft income (which is the easiest income to verify) cause they'll assume I'm going to massively depreciate the car in no time.

*Fennec: *Yeah I've heard some places ask income but don't actually ask for proof if your credit score is decent and you make a decent down payment so maybe I'm worrying too much. Did they ask for your employment information or just how much you make?


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## jgiun1 (Oct 16, 2017)

You have to remember also... tax, title and registration that will probably drop your three grand down to about $1800-$1900. I only knew two people my whole life that got a no income loan for car and they both had flawless credit. That girl also mentioned she had a parent co-sign the loan for her because my guess, New credit for a loan. You can have perfect credit, like in her case, but never showing a car payment would be result of new credit and need of a co sign.

That's about what my malibu costs were in April 2017, like 8999 amd I also financed a warranty and put 1200 down for tax- title and registration. So I took 10,200 loan for twenty four months. But like I said above, they went through my bank statements with a magnifying glass and wasn't until I listed self employed driver on application, the loan went through. No banks wanted to touch a full time listed lyft-uber driver on application.
I honestly would call dealerships first before even wasting time going in. You can set up the financing before even wasting time going in.


There are car lots here that finance no credit or income and they are about 4-5 grand down and the cars aren't that new and have between 60-90k miles.... You'll have to settle for a car with about 60k miles 5 or 6 years old and will end up costing you the price of a model that's two-three years old.

Also the fact you said you bought cars in cash doesn't help. The lenders want to see previous car loans, even if you didn't pay it off.
Good luck, I was just telling you what I went through when my Taurus was totaled and I went on a week long car search with just money earned from rideshare with no pay stubs and W2 job to show, and it wasn't fun.


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## UberDez (Mar 28, 2017)

Best way to get a loan if you're doing full time Uber would have been to set up an LLC and business checking account , have all your deposits go to the business account as well as pay all of your Uber related expenses from the Business account , then cut yourself a check each week and deposit into your account. 
When you apply for a loan you simply say you're self employees and instead of income verification you provide a couple months of bank statements 

You're still probably gonna have to come up with 10 to 20% down if you have a credit score under 700 

I just refinanced my current auto loan and cut my rate substantially they didn't even ask for income verification , it was very simple saved me almost $100 a month and lowered my term as well


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## jgiun1 (Oct 16, 2017)

UberDezNutz said:


> Best way to get a loan if you're doing full time Uber would have been to set up an LLC and business checking account , have all your deposits go to the business account as well as pay all of your Uber related expenses from the Business account , then cut yourself a check each week and deposit into your account.
> When you apply for a loan you simply say you're self employees and instead of income verification you provide a couple months of bank statements
> 
> You're still probably gonna have to come up with 10 to 20% down if you have a credit score under 700
> ...


Very good idea there


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## fennec2009 (Dec 18, 2017)

EaglesFan said:


> Thanks for the replies.
> 
> *Jgiun:* When you said it's real hard to get a no income verification car loan was that true also though if you put a lot down and pay it off quickly, in addition to having a good but not perfect credit score (690). I was thinking of putting $3k down on $11k loan and paying it off in 48 months. I only Lyft about 10 hours a week (most of my income comes from other sources but they are really hard to document) so I'd probably never be underwater on this loan so I would think that would make it very low risk for a bank. But I figured it's not a good idea to mention Lyft income (which is the easiest income to verify) cause they'll assume I'm going to massively depreciate the car in no time.
> 
> *Fennec: *Yeah I've heard some places ask income but don't actually ask for proof if your credit score is decent and you make a decent down payment so maybe I'm worrying too much. Did they ask for your employment information or just how much you make?


They needed an employer name, since I technically am my own employer we put down "[my first name last name] Delivery Service" or something to that effect. Went through no problem. They didn't even ask for details on the companies I deliver for. I am not sure I even really needed a co-signer, but we didn't try without my dad for sake of time since I came in close to closing. I've never had a car loan before but I have 4 major credit cards, a couple store cards, mortgage and 2 lines of credit, all payments made on time. YMMV since your credit history is limited to just a credit card. I originally had only $1000 down on a $12500 car, but decided to return the first car and get a nicer one and put $3000 down on a $14000 car. No issues with either down payment. They rolled the TTL fees into the loan.

Oh, and if you are looking to boost your credit, might take a bit longer than two months, but the highest jumps in my score have been when my lines of credit were paid off. Those were throughout Allstate Appliance (via Synchrony bank) and Best Buy for kitchen appliances. Score went down a little when I first opened them, but jumped up 20-30 points after I made the final payment. They were no interest if paid in full by X months so it didn't cost me anything extra. Just a thought if you are looking to purchase anything like electronics/appliances/etc soon.


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## jgiun1 (Oct 16, 2017)

fennec2009 said:


> They needed an employer name, since I technically am my own employer we put down "[my first name last name] Delivery Service" or something to that effect. Went through no problem. They didn't even ask for details on the companies I deliver for. I am not sure I even really needed a co-signer, but we didn't try without my dad for sake of time since I came in close to closing. I've never had a car loan before but I have 4 major credit cards, a couple store cards, mortgage and 2 lines of credit, all payments made on time. YMMV since your credit history is limited to just a credit card. I originally had only $1000 down on a $12500 car, but decided to return the first car and get a nicer one and put $3000 down on a $14000 car. No issues with either down payment. They rolled the TTL fees into the loan.
> 
> Oh, and if you are looking to boost your credit, might take a bit longer than two months, but the highest jumps in my score have been when my lines of credit were paid off. Those were throughout Allstate Appliance (via Synchrony bank) and Best Buy for kitchen appliances. Score went down a little when I first opened them, but jumped up 20-30 points after I made the final payment. They were no interest if paid in full by X months so it didn't cost me anything extra. Just a thought if you are looking to purchase anything like electronics/appliances/etc soon.


Nice, you know how to play the credit game for sure. For sure the key is never list Lyft or Uber on the application anywhere. Most car lenders like to see previous history of car payments. I probably financed and bought with cash about twenty five cars in my life and none ever as much of a challenge with W2 & pay stubs....lol

I see you from Cleveland, you ever visit Geneva on the lake?


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## fennec2009 (Dec 18, 2017)

jgiun1 said:


> Nice, you know how to play the credit game for sure. For sure the key is never list Lyft or Uber on the application anywhere. Most car lenders like to see previous history of car payments. I probably financed and bought with cash about twenty five cars in my life....lol
> 
> I see you from Cleveland, you ever visit Geneva on the lake?


Nope! always gone over to Marblehead/Kelley's Island instead of toward Geneva


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## Hagong (Jan 17, 2017)

EaglesFan said:


> I know absolutely nothing about car financing, I've always bought cars cash in the past. I plan to make this move in 2 months but I want to plan ahead.
> 
> I'm planning to buy a used 2016 rental car with about 40k miles. With taxes and other stuff included it will probably come to about $11k. I plan to pay $3k down and take a 48 month loan. My credit score right now is about 690. I have no delinquencies but I do have a relatively high credit card utilization cause of some stuff that happened in the past. I've been paying it down. I've also only ever had 1 credit account in my life and that's my credit card but it's been open more than 10 years.
> 
> ...


Go to a credit union for financing. Not a bank


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## Fauxknight (Aug 12, 2014)

Hagong said:


> Go to a credit union for financing. Not a bank


That does work, particularly if you have a history with the credit union. I was able to get a loan through my credit union at a good rate (like 2.35%) even with my total income not showing huge.

I went with Honda Financial on this most recent car though, got .9% which is better than the mid 2% range my credit union could do. At 795 I don't think they really cared much what I pulled in.


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## DEEP3R (Mar 20, 2017)

My girlfriend bought and financed her car at Carfax without income verification. Some lenders they deal with do not require it as well.


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