If you have been shopping around for a new car, chances are you’ve considered financing your car with a car loan.
A majority of automotive sales are funded through financing as most consumers do not have the cash ready to purchase a car right then and there.
One of the most common questions we receive from users regards the income requirements for an auto loan.
Minimum Income for an Auto Loan
Depending on your location, most lenders like to see a monthly pre-tax income of $1,500 or more, which translates to $375 per week.
Again, this can vary depending on your state. A lender in Oklahoma is likely to have a lower income requirement than a lender in New York City.
Sources of Income for an Auto Loan
In a day and age were good paying jobs are scarce, many consumers have turned to a second job or even a side gig to help with additional income.
However, auto lenders only take 1 source of income, not multiple.
This means that if you have a regular job with an income of $1,200 per month and a side gig that pays you $400 per month, you cannot combine the two together for your monthly income.
There is a chance some lenders may allow this, but only for buyers who have prime credit.
If you have a less than perfect credit score, chances are your lender will ask you to list your largest source of income.
To confirm that the amount of income you listed is accurate, a lender will ask you for all pay stubs issued within the last 30 days from your employer.
Other Requirements for an Auto Loan
Auto lenders also have other various requirements for buyers who have less than perfect credit scores. Besides proving your income, a lender may ask for a list of references to contact.
These references do not have to live in the same state or area as you.
All you need to provide your lender is their name, address, and phone number.
Depending on your credit score, you may be asked to provide just 3 references or in some cases 12.
Lenders also ask for a utility bill in your name that has been addressed to your home.
This is because lenders will also need to verify your address is correct.
If you are looking to buy a new car but have less than perfect credit, CrediReady can help. Our nationwide network of trusted dealers and verified lenders work with buyers in all credit situations. Take a moment to fill out our free no-obligation loan inquiry form and start shopping for your dream car today!