Auto Loan income verification

[Anonymous]

Purchased my 5th car from my local honda dealership, this is the first time I've been asked for my proof of income. Everytime I've been told to give my gross income included bonuses or overtime that I typically accrue, which I did this time as well. I went based right off my W2. I work in hospitality and get overtime 3-4 months out of the year, and pretty good bonuses trhoughout the year relative to the income. Currently it's March, so my recent paystub that they are asking for is only going to show my bsae pay. Is it OK for me to bring my W2 along with the most recent pay stub? That way I can show what my yearly income was, and that I am still working there? If this doesn't work what may happen?

[Anonymous]

I am always a bit suspicious when I see a dealer asking for proof of income on someone with good credit scores.  Makes me wonder if they are going to shop your loan to someone who they have a side deal with to mark up interest.  This is one reason I only buy when I have a preapproved loan through a credit union.  I would bring both the W2 and pay stubs if your debt to income level is tight.  Unless they are getting you a special interest deal through Honda I would apply at a credit union and bypass the dealer financing.  Of course if they tell you they are working with Honda Finance and that who is asking for it to give you .09% then that is different.  

[JGGM]

Do you (or will you) have multiple open auto loans? Also, one of your scores posted is in the 650s. Either of these could be reasons why they are asking for POI. I would bring in both W2 and recent pay stubb. Typically, we do not ask for POI unless it is a stipulation from the bank. 

[Raziel77]

I can’t emphasize enough on how important to have your own preapproval ready before buying a car from a dealer. Just adding that I don’t mind if a dealer will be shopping around for a better interest rate and I will take it any day if they were able to beat my preapproval. I wouldn’t consider it suspicious.

As for income verification part, I remember once I gave a generously high income figure to a Honda dealer “that was for a lease”, they asked me for documents and I submitted them. The documents showed lower income and I still got the car. As long as they think you can afford it, you will be fine despite the discrepancy between the current income and the expected one.