About 43 percent of adults in the United States have car loans. That equals over 100 million people.
However, not every person with a car loan has a traditional way to verify their income. The gig worker economy has exploded since the COVID-19 pandemic and these jobs do not have reliable ways of showing proof of income for car loan.
If this applies to you and you are in the market for a new car, keep reading.
This is a complete guide on everything you need to know about how to show proof of income for a car loan.
How Do Banks Verify Income for an Auto Loan?
In order to qualify for a car loan, a bank or other financial lender will need to verify your source of income. You can usually do this by providing at least one pay stub from your job.
If you have more than one job, show a pay stub from each job so you can qualify for a higher loan.
If you have accepted a new job and have not started working yet, you can usually provide an offer letter that states what your expected income will be.
How Do I Show Proof Of Income for Car Loan If I Am a Gig Worker?
Proving your income can be tricky if you are a gig worker and do not have a regular, steady source of income. You work unreliable hours and there is no guarantee of how much money you will make in a month. You may also work several different gig jobs all on different apps.
But if you have a car dealership asking for proof of income, there is no need to sweat. There is a way you can create your paystubs online today.
There are online programs that allow you to enter in your information of how much you have made across all your different gig jobs. It will then consolidate it into one easy paystub to show to a car dealership.
What If I Have No Income Verification?
Sometimes, a person will have no income but still, need a car loan to get a vehicle. This can include stay-at-home parents, students, the elderly, someone who has recently been fired, and more.
If you are getting financial assistance from the government, that could be considered as proof of income at a car dealership.
Another way to show proof of income for a car loan is to show that there have been regular payments deposited into your bank account over a set period of time.
Looking for More Financial Trends and Tips?
There are a variety of ways of showing proof of income for car loan and other types of loans. Just because you may not have traditional ways of showing a reliable income does not mean you cannot qualify for a car loan.
If you are looking for more insights and advice into the top financial trends, follow along for more articles.