Auto Loan Question

[fxtrader]

I'm thinking about purchasing a car within a month or so..I'm currently unemployed but am searching for a new job. My FICO scores are around 700, on time payments, nothing negative, only revolving credit lines so far. Oldest card is three years.

Do dealers/lenders normally request income verification? My father can cosign but he's had a recent bankruptcy (2-3 years ago). Is a "buy here pay here" option the best way to go?

[TRC_WA]

Mine requested employment info as part of the credit app which is obviously the norm.

They didn't call to verify my employment though... I know because I bought the car at 9pm when my employer was closed and drove it off the lot that same night.

I would avoid the buy here pay here places... high interest.  I'd also wait till I secured employment before buying the car.. .but that's just me.

[fxtrader]

Thanks for the reply. What I wanted to know is if they requested payroll docs, bank statements, etc to verify employment/income. I've read conflicting responses online to this..some requested..some didn't. I just wanted to get some clarification. 

[IamB2]

I would also avoid Buy Here Pay here places. 

As it relates to getting a car without a job, it is a really tough option. How can you prove to the dealer/finance company that you are able to make your payments? It is true that the dealership does not verify employment on the spot, but most contracts require that you come back and re-sign the paperwork, and if needed return the car if some information does not match or can not be verified... so I wouldn't just put something on paper. 

As for involving your dad as a co-signer, that may not be the best option either. He has a bankruptcy that is pretty recent. The best option, in my opinion, find a job and then get a loan. Your scores and profile (with no negatives) seems to be fine as it relates to getting an auto loan... Of course the amount of balance you carry on your other revolving cards can impact your DTI too.. so you want to keep an eye on that.

Best of luck to you

[TRC_WA]

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@fxtrader wrote:

Thanks for the reply. What I wanted to know is if they requested payroll docs, bank statements, etc to verify employment/income. I've read conflicting responses online to this..some requested..some didn't. I just wanted to get some clarification. 

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I went to 2 dealerships.

The first requested paystubs in addition to my employment info... and also told me I had to put $7k down to close the deal.

The second was the one I mentioned in my first post... they seemed much more interested in selling a car... and they did.  I got the same car... for $0 down.  Gotta love car salesmen...

[fxtrader]

Thanks. My util is around 30%. My cousin is car shopping at Lexus, BMW, Infiniti later today..I'll tag along and see what info they request.  

[vertekal]

I bought a car at a reputable Mazda dealer, and another at a shady looking used car lot. Both required pay stubs. My g/f is self employed, so they wanted to look at her recent bank deposits.