When you approach a credit union, a bank, or a dealership to take an auto loan, they will ask you to provide proof of income. After all, they want to know if you can make the monthly payments regularly.
However, when you work as a freelancer or you are self-employed or you are a temporary worker, getting this document tends to be challenging. You may not be able to show stubs which indicate that you money regularly.
Although it is an important requirement, there are several ways you can work around this issue. Given below are some tips and tricks on how you can take an auto loan, despite not having income proof.
Ways to establish your ability to make loan repayments
A great way to show the lender that you receive income is to show your tax return copies. These documents are helpful because they give the vendor an estimate of how much you made over a certain period. Most lenders will have to provide your tax returns for the last two years. Also, don’t sweat it if the income appears to be lower, as lenders will go through gross value, not what is taxable.
If you have any contracts or invoices with you, there is a chance you can submit them. Make sure you collect all the reports which show how much you received over the last 12 months. However, it isn’t necessary that the lender will only accept this as proof of income. You can submit your bank statements, which indicate you receive income from other sources.
Tips for taking an auto loan without income proof
If you want to increase the possibility of getting an auto loan, despite not having income proof, you can always get a co-signer. When the individual signs the contract, he/she is giving a guarantee that you will repay the loan on time.
If you fail to pay, the co-signer will have to take responsibility to make the payments. Also, you can increase the size of the down payment, which brings down the amount you have to borrow from the lender.
You can always approach TakeTheDrive if you want to take an auto loan at incredible rates of interest!