Most car finance dealers and companies are not fond of offering auto loans to people with no job, but if you locate the proper lender there are ways qualify for financing.
First, one must understand that having some sort of employment is very crucial when applying for bad credit auto financing, as it’s the only way to signify you can afford to repay your loan. However, despite this being an important factor a person can produce an income and have no proof of a job in certain situations.
Income Over Employment
It may sound backwards, but it’s the cold-hard truth. Many people are self employed, receiving disability benefits, used Social Security income to qualify for car loans, collecting retirement, or are trying to use a 1099 to a obtain financing. Each of these things are a justifiable income that certain auto finance companies are willing to accept in place of proof of employment.
The borrower must also show that their income is consistent and currently able to satisfy any current debt that they might have, along with their no job vehicle loan payments. Therefore, it’s important to have any bank statements or check stubs available when you complete you auto finance application and meet with the dealer.
Other Needs for No Employment Car Loans
Aside from having a reliable income it’s also important that borrower has the proper credit score and auto insurance when they apply for a no employment car loan. The better a person’s credit is the more likely they are to approved for a loan, and the same goes for having auto insurance.
However, since there are a number of consumers with subprime credit ratings who may not be able to show proof of employment with auto financing, it may be a good idea to have a co-signer in place. By using a co-signer it can allow for their income and credit status to be the fuel that will drive you car loan and make it more likely for you to be approved.