Do You Have to Show Proof of Income When Getting a Car Loan?

Dear Tony:

I am a nanny right now and my employers pay me under the table. I make approximately $37,000 a year. I currently have a 1998 Ford Mustang that is financed through Alaska Federal Credit Union and the balance is $4,800.00. I also have an account with Ford Motor Credit for $500.00. I want to trade my car in for a Subaru Forester.

My dad says that I will not be able to get a loan because I do not have verifiable income. Is this true? Should I not even attempt to do the trade in? The other thought is that I could get a temporary office job along with my Nanny job. Would that help? Your thoughts and advice would be much appreciated.

Thank you,

KERRI D.

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Hi Kerri,

In the majority of the cases when you get a car loan you don't have to show proof of income. When I was working as a Finance Manager I arranged hundreds of loans for people without them having to prove their income. One thing to remember however, if you allow the dealer to arrange financing do not give the dealership any money and do not surrender your trade until they can prove to you that your new car loan is approved by the lending institution. They have been known to make people believe their loan is approved when it isn't, and then the customer runs into problems two or three weeks later when they can't get a loan and their trade is long gone. So be careful.

Your best bet is to arrange your own financing right through the credit union where your trade is. If Ford Motor Credit approves you they're good to deal with too, but the approval has to be arranged by the dealer. Ask for a copy of the approval from Ford before you turn over your trade.

All my best...

Tony Iorio
http://www.insidercarsecrets.com/
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