Many car buyers ask if a bank statement is a valid way to provide proof of income.
While bank statements show a summary of all your financial transactions over a set amount of time, you can’t use a bank statement on its own as proof of income for a subprime auto loan.
Do I need bank statements for a car loan?
If you are using a dealership to provide financing for a vehicle and you’re asked to provide your bank statement, you should provide it. Usually, a dealer asks for your bank statement to verify income or your cash-on-hand.
Do you have to show proof of income when buying a car?
When you apply for a car loan, most lenders require proof of income. If you are unable to provide that evidence because you don’t have a job or are self-employed, your options are somewhat limited. However, it is still possible to buy a car even if you don’t have proof of income when you follow some specific steps.
How many pay stubs do you need to buy a car?
When you’re applying for your loan, you’ll want to take copies of your pay stubs from the last month, showing the total of what you’ve been paid year to date. You may also be able to use bank statements to show proof of income — be prepared with up to six months of statements.
What to bring with you when you buy a car?
What to Bring When Buying a Car
- Your driver’s license.
- Proof of insurance.
- Form of payment.
- Recent pay stubs.
- Credit score and history.
- Discount information.
- A list of references.
- Current certificate of title.