How to Get an Auto Loan Without Proof of Employment

Posted by Sanjaykale on June 27th, 2016

How to Get an Auto Loan Without Proof of Employment. From a lender's perspective, if a buyer does not have proof of steady employment, he probably would default on a loan. Lenders do not favor writing loans that would be unlikely to be repaid. So getting an auto loan without proof of employment can be challenging. Yet, it is possible.

It's possible to get an auto loan even without proof of employment.

Things Needed

Driver's license

Proof of insurance

Proof of income

Step 1

Provide proof of income. If a borrower is self-employed, is a 1099 contract employee, is receiving disability benefits, or is collecting Social Security payments or retirement pay, income has to be proven. A loan applicant needs to be able to show access to a regular source of income. The sources can vary from trust funds to lawsuit settlements to retirement income, but the borrower must show stable and available income to justify the loan. Without any source of income, an auto loan is impossible. Income can be shown using paycheck stubs, income tax returns, or bank statements reflecting regular deposits from an agency issuing disability or settlement payments. Borrowers often are asked to bring in two years worth of documentation of income, to average out a monthly income estimate for loan underwriting.

Step 2

Check your credit. Lenders can feel somewhat anxious when extending credit to a borrower without proof of employment. However, they feel less anxious if that borrower has excellent credit. If the borrower can provide a satisfactory two-year credit history that shows no late payments, judgments, or collection accounts, the lender will consider that.

Step 3

Have insurance information ready. No dealer or lender will allow a borrower to waltz off a lot in a new car--or a used one--without proof of insurance. Vehicles can be added to a policy in a few moments, so as long as the borrower has his insurance information with him, insurance should be an easy hurdle to jump.

Step 4

Have a co-borrower on standby. If the income stated on the application does not meet the lender's standards, or if the borrower's credit is questionable, having a co-borrower can increase the chances of a loan approval. It helps if the co-borrower is employed, has stable income and good credit.


Consider paying for a car in cash. No proof of income or employment is required in a cash purchase.


Some lenders charge higher interest rates to unemployed buyers who are approved for a car loan.


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Joined: June 23rd, 2016
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