If you aren’t currently employed, you may be wondering how you can get an auto loan. Financing may be difficult to come by, but don’t give up hope – difficult doesn’t mean impossible.

Terminology varies around the world, even when you're talking about car loans. Take the phrase “low doc” car loan. This isn't something we're accustomed to in the US, but in Australia, it refers to getting a car loan without income documentation. This is something which can be very difficult to do if you have bad credit.

How banks and lenders verify your income is fairly simple, they ask for proof and run your information through an e-verification system. But it’s important you make sure you’re able to qualify before you head to your bank or car dealer.

Many credit-challenged car buyers want to know how their additional sources of income, such as Social Security or disability, will affect their application.

You can determine if you meet an important requirement for a bad credit auto loan by understanding the way lenders calculate your payment to income ratio.

If your credit is less than ideal, most lenders (those who will accept bad credit borrowers) will want to see no more than 50% of your income going towards debt every month, and this includes your potential car payment.

If you've recently started a new job, but you have bad credit, getting approved for an auto loan becomes a bit trickier. Subprime lenders have general requirements they like to stick to, but they also understand that everybody's situation is different.

Even if you're a freelancer with a fluctuating income, no steady employer and bad credit, it's still possible to get approved for a car loan.

Car buyers with problem credit that are self employed should be aware of the problems they may encounter when applying for a car loan.

Having bad credit doesn't mean you won't be able to get a new car when you really need one. If you have a good job and a steady incmoe you can be approved for auto financing.