The dream of owning a car is often just a dream for many people. The concrete plan to actually buy the desired vehicle ends on the price tag. Banks offer special car loans in different amounts to enable people not to have to do without their own car, but often enough people do not get such loans because they lack income. Those affected start looking for a car loan without proof of income.
The car loan without proof of income: The difference between proof of salary and proof of income
Your own credit rating is decisive for the answer to the question of whether you can get a loan or not. The majority of people prove their creditworthiness through their salary. Many banks, therefore, do not require proof of income, but proof of salary, but in this way they already exclude the huge professional group of the self-employed.
In addition, as an employee, you can also generate other income that can be important for lending. These include, for example, the people who have a living space that they rent. If a bank demands proof of income, it wants to see everything that people use to make their money. Proof of salary is therefore part of the proof of income.
The problem with a car loan without proof of income
Now you want to take out a car loan without proof of income. This means that you do not want to inform the bank about your own income, which usually means one thing: these are too low to actually justify the lending. You also cannot argue that you urgently need a car loan to get a vehicle because otherwise you will not be able to get a job or lose your job, because even in this case the bank will counteract that, unfortunately, you cannot understand this without proof of income can and has to refuse to lend for this reason.
The car loan without proof of income: These ways are open to you
In principle, a car loan is not different from any other loan, there are. Its allocation depends largely on the sufficient creditworthiness of a borrower. If this is not available, which can be assumed from the lack of proof of income, there is another way to convince. Most of the time, the banks themselves show you suitable ways to do this. The common suggestion from financial institutions is to ask someone else to sign the loan application with you.
What the bank actually asks for in this case is to call in a guarantor, who should be prepared, if possible, to do what the actual applicant refuses to do, namely to prove via his income that he can also repay the loan installments. In addition to or instead of the guarantor, you can also offer collateral.
The first security for a car loan is the car that you buy yourself. Some banks require that the vehicle letter be deposited with them, which means that the bank actually remains the owner of the vehicle. You only issue the vehicle registration document when all the borrowed money and the agreed interest have been repaid.