cancel
Showing results for 
Search instead for 
Did you mean: 

Auto loan without job-related proof of income?

tag
Anonymous
Not applicable

Auto loan without job-related proof of income?

Hello,

 

I purchased a new vehicle a few days ago, dealer approved me for credit via RBFCU, I made a deposit of about 1/3rd the price of the vehicle, we signed contract etc and I took possession of the car. Today, my loan got denied by RBFCU because using household income as my own wasn't OK with them and they wanted personal proof of income that I couldn't produce - I'm a stay at home mom and own a small business that turned profitable in 2016 (so 2015 tax return doesn't look great to them). My FiCO score is around 730. Do you know of other places I could obtain auto financing that would allow me to rely on household income or other sources of income? Or that doesn't ask for verification of income? My spouse has a credit score in the 800s but needs to apply for a home equity loan to start a business in the near future, so we can't risk having him as my co-borrower.

 

Please let me know what you suggest my options are at this point. I would really prefer not to have to do the walk of shame back to the dealership when I have great credit and have enough money to pay for the loan.  

 

Message 1 of 13
12 REPLIES 12
Anonymous
Not applicable

Re: Auto loan without job-related proof of income?

FWIW, just tried getting "prequalified" with Capital One and got rejected, despite my excellent credit. Did my RBFCU approval-then-rejection give me the plague? Or should I have waited? 

Message 2 of 13
MakeItAMudLight
Frequent Contributor

Re: Auto loan without job-related proof of income?

What kind of vehicle is it?  And what was the loan amount?

Message 3 of 13
UncleB
Credit Mentor

Re: Auto loan without job-related proof of income?

I'm sure plenty of others here will chime in with their thoughts and experiences, but over the years I've never been asked to provide POI except for one time, and that's when I used Capital One's "Blank Check" program years ago.  Before they would issue the check, they made me fax over pay stubs, and even that was relatively painless.

 

In your case I'm thinking you had an issue because you went with a CU, which are known to be more 'picky' about verifying things (sometimes even with a credit card application).  I suspect if your dealer financing had been with a traditional bank or through Ford, Nissan, etc. it would have been "sign and drive".  Think about it like this... how many people go car shopping with a pay stub in their pocket?  Even more so, if POI were regularly required, it would be a fantastic way to get a salesman off your back, i.e. "there's no point in doing paperwork today, Mr. Salesman, I don't have my paystubs with me...".  Obviously the dealership wants to make the transaction as 'smooth' as possible, and they really want to sell you the car... which is why verification usually isn't an issue for someone with good credit.

 

In this case, the last thing the dealership wants is the car back... they really, really want you to keep it.  If it were me, I would call them up and tell them you're having problems with your RBFCU financing and you're going to be unable to provide the documents they require (the reason shouldn't matter).  If you're shy you can just say that you didn't appreciate the way they handled your loan and the converation went 'south' and now they want verification, which you aren't willing to provide.  if it were me, I would ask the dealership if rather than return the vehicle - which I'm perfectly fine with after this debacle, by the way - is there another lender they can run my paper through.  I suspect there will be other options (especially with your strong credit score), and since they already have your information on hand the phone call should be all that is needed to start the process. 

 

If there is pushback, I would respond by asking them how long it will take to process a refund of your down payment (or a similar statement to let them know there's a chance you're bringing the car back)... at this point they will likely be more than willing to do whatever it takes to make the deal work.  They know if you 'walk' you'll be able to go to any dealership you want, and with your credit score financing with a 'traditional' lender (non-CU) won't be a problem - at all.  You also now have a paper copy of their 'best offer' to use at another dealership, which will likely be more than happy to match or slightly beat.  Smiley Wink

 

I'm sorry you're having this issue, since buying a car is stressful on the best of days.  Please let us know how it goes!  Smiley Happy

Message 4 of 13
Anonymous
Not applicable

Re: Auto loan without job-related proof of income?

Thank you so much for your reply and encouragement! Your diagnosis was spot on- going with a CU was the key mistake we made. I phoned the dealership a couple of days ago to let them know what happened and an hour later, they got me approved with a traditional bank. I just had to go over there to sign new paperwork. Hopefully I won't run into any more surprises this time around... but lesson learned for the future! It's too bad for the interest rate (1.8% at RBFCU, 3.29% with Chase) but I can hopefully refi at the end of the year with a nicer looking 2016 business tax return. 

Message 5 of 13
Anonymous
Not applicable

Re: Auto loan without job-related proof of income?

It's a very glamorous swagger wagon (I refuse to use the "m-word" because I still think I'm cool.) Loan amount was around $25K

Message 6 of 13
UncleB
Credit Mentor

Re: Auto loan without job-related proof of income?

I'm super-glad to hear it all worked out!  That's not a bad rate... you still did well!  Smiley Wink

 

Oh, and huge congrats on the new ride!  Smiley Very Happy

Message 7 of 13
SouthJamaica
Mega Contributor

Re: Auto loan without job-related proof of income?


@Anonymous wrote:

Hello,

 

I purchased a new vehicle a few days ago, dealer approved me for credit via RBFCU, I made a deposit of about 1/3rd the price of the vehicle, we signed contract etc and I took possession of the car. Today, my loan got denied by RBFCU because using household income as my own wasn't OK with them and they wanted personal proof of income that I couldn't produce - I'm a stay at home mom and own a small business that turned profitable in 2016 (so 2015 tax return doesn't look great to them). My FiCO score is around 730. Do you know of other places I could obtain auto financing that would allow me to rely on household income or other sources of income? Or that doesn't ask for verification of income? My spouse has a credit score in the 800s but needs to apply for a home equity loan to start a business in the near future, so we can't risk having him as my co-borrower.

 

Please let me know what you suggest my options are at this point. I would really prefer not to have to do the walk of shame back to the dealership when I have great credit and have enough money to pay for the loan.  

 


Personally I think you should go to a different dealer.

 

If a dealer can't get someone like you financing, then it's not a good dealer.

 

The majority of lenders would let you use household income and would not require income verification. But even income verification shouldn't be a problem in the event it was asked for, since you have your tax returns.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 8 of 13
SouthJamaica
Mega Contributor

Re: Auto loan without job-related proof of income?


@Anonymous wrote:

Thank you so much for your reply and encouragement! Your diagnosis was spot on- going with a CU was the key mistake we made. I phoned the dealership a couple of days ago to let them know what happened and an hour later, they got me approved with a traditional bank. I just had to go over there to sign new paperwork. Hopefully I won't run into any more surprises this time around... but lesson learned for the future! It's too bad for the interest rate (1.8% at RBFCU, 3.29% with Chase) but I can hopefully refi at the end of the year with a nicer looking 2016 business tax return. 


Nice going.

 

Don't worry about the rate, it's fine.

 

Just pay the loan down ahead of time, if possible, so your credit score can rebound.

 

 


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 9 of 13
Anonymous
Not applicable

Re: Auto loan without job-related proof of income?

I'm suprise the loaning CU actually asked for POI. The only time I was asked for POI was when my score was in the 450 range and from capital one. Few months ago I got a loan from a patelco credit union for 96k with a 690 ish score and wasn't ask for POI. Also did a loan for 59k those Acura financial and wasn't ask. Another 38.5k through Toyota financial and wasn't ask and another 38.5k through Sheffield and wasn't ask

Message 10 of 13
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.