Looks like this must be a "touchy" subject 
Well thanks for the input anyway.
Heh, wasn't that it was a touchy subject, it's that I really have not much of an idea.
The two usual ways of verifying income are:
- Last two paychecks (W2)
- Tax returns
You stated that the money you receive isn't taxed, is it at least listed on the tax return in any shape, form, or fashion? If so, just drag down your last two years and that should be more than sufficient (it is for a mortgage, it should be for an auto loan).
Beyond that, about the only thing I could suggest is getting a letter and various other documentation from the institution which distributes your disability money.
I apologize that I don't have better information for you, it's just a situation I have zero experience with either directly or second-hand; however, there's got to be some way to accomplish it as your situation cannot possibly be unique and if it's been done before, it can be done again.
Actually, what you probably should do: instead of going to a dealer, see about talking directly to the big auto lenders (Toyota Financial Services, GM, etc.) as they're far more likely to have direct experience to be able to help you than we can on this forum, and probably more than the F&I guy at the local dealership too. Since lenders are the ones that actually underwrite the loan, and they deal with a lot more customers as an institution than any dealership, they'll be better able to help you with exact specifics towards your situation and you just need to meet the standards they require. It's probably the same across all of them anyway and likely the quickest path to getting things moving forward for you.
Hello again and thanks to everyone, wow 
Capital one is the lender who is carrying my current loan. They turned down the latest request just like everyone else. Back when I got this original loan I was starting from a different place credit wise. My credit was fair at the time, this was JUST before the new credit standards kicked in which kicked my scores back down. I think at the time I was in the mid 500's and Tons of old crap had fallen off my reports. I also had no credit cards at the time so Cap 1 grabbed me up. I was just deciding I wanted to turn things around and strengthen my credit and I felt the car would be a great way to do so, and I also got some credit cards along the way.
My disability payments are paid out by my employer as part of a settlement.
The lenders are asking about my income, but they are perplexed by the amount not the validity. My net is the same as my gross since there is no tax taken out, but I think they are just not able to get passed the usual formula and thus they insist there must be money being subtracted from the final number and there is not. So then they say I do not have enough "room" for the new potential car payment.
I have given up for now, thankfully I am not in a position where I MUST get a car right now, the one I have would be considered very nice by most, I just want a newer model. Again after a nice chat with the finance mngr it was clear paying down my credit cards will make a big difference there and even better my scores will be just that much higher as well. This has all taught me a lot so that's still a perk.
Thanks again to ALL of you for sharing your input/ opinions on this.
@MJNTX wrote:Hello again and thanks to everyone, wow
Capital one is the lender who is carrying my current loan. They turned down the latest request just like everyone else. Back when I got this original loan I was starting from a different place credit wise. My credit was fair at the time, this was JUST before the new credit standards kicked in which kicked my scores back down. I think at the time I was in the mid 500's and Tons of old crap had fallen off my reports. I also had no credit cards at the time so Cap 1 grabbed me up. I was just deciding I wanted to turn things around and strengthen my credit and I felt the car would be a great way to do so, and I also got some credit cards along the way.
My disability payments are paid out by my employer as part of a settlement.
The lenders are asking about my income, but they are perplexed by the amount not the validity. My net is the same as my gross since there is no tax taken out, but I think they are just not able to get passed the usual formula and thus they insist there must be money being subtracted from the final number and there is not. So then they say I do not have enough "room" for the new potential car payment.
I have given up for now, thankfully I am not in a position where I MUST get a car right now, the one I have would be considered very nice by most, I just want a newer model. Again after a nice chat with the finance mngr it was clear paying down my credit cards will make a big difference there and even better my scores will be just that much higher as well. This has all taught me a lot so that's still a perk.
I think if you were not so afraid to tell them, that you would find someone to work with you. Pay down your credit cards and such and then just be honest. I have been on permanent disibility since the end of 2005, and while i have not gotten a new car loan, i did refinance my house and have gotten around 73k in credit lines over 5 credit cards extended to me. I have always when asked told them i am totally disabled, and that i can show proof of income, that it is non-taxable and that i do not file tax returns. By the way, are you just getting the money from the emplyer or from ss disibilty as well?