Not everyone has a nine-to-five job. For those that don’t, how do you get into an auto loan without income verification? Well, the truth is, it may not be the easiest task to tackle, but here’s what we know.

Income and Auto Loans

No Income Verification Car LoansWhen you apply for a car loan, it’s likely that one of the first things a lender is going to require is proof of income, and they’re going to verify it. Since you’re financing, you have to repay the loan, and need proof that tells the lender you’re able to do just that. Without any verifiable income, you’re very unlikely to get approved for an auto loan.

However, there are many unconventional ways that people earn income. Many borrowers earn their income through freelance work, rental properties, or are on permanent disability. Proving these income sources isn’t as easy as bringing a check stub, though.

Most times, with a non-W2 income source, you’re likely to need two or three years of tax returns to verify and prove your income. Bank statements don’t usually do the trick, since these don’t prove where the money is coming from or that it’s been reported and taxed.

For long-term sources of awarded income, such as permanent disability or alimony, expect to need an award letter that proves you’re going to receive that income for the entire duration of the loan.

What if I Have No Income?

No matter what auto lender you choose to go with, they’re going to require some form of verifiable income. Depending on the lender, they may only accept certain types of income.

If you don’t bring in any sort of income, then your other option is to bring someone else onto the car loan application, making it a joint auto loan. Joint car loans have co-borrowers that both share equal responsibilities for the vehicle and the loan.

If you have no income, but your spouse or life partner does, they may be able to help you meet income requirements. Co-borrowers are almost always spouses or life partners, since it’s typically required that you prove you both have access to each other’s assets and income.

If you’re approved, then you both get your names on the car title and both of your credit scores and reports are impacted by the activity on the loan.

OK, but What About My Credit Score?

Having enough verified income is just one part of getting approved for an auto loan. Another large chunk is meeting credit score standards. Most traditional car lenders tend to prefer borrowers with good credit scores.

However, there are lenders willing to assist borrowers with credit challenges.

Subprime auto lenders consider your ability, stability, and willingness to pay when you apply for financing. This means taking a good look at your work and income security, residency stability, and more, as well as require a down payment. Down payments increase your odds of getting approved, since they lower the finance amount and lower the chance of default.

Finding the Right Car Dealer

Finding bad credit dealerships isn’t always easy, but we want to help. Here at Auto Credit Express, we’ve created an expansive network of dealers that assist bad credit borrowers.

Get the ball rolling on your next car loan right now by filling out our auto loan request form. We’ll get to work looking for a dealership in your area, completely free of charge and with no obligation.