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Do Car Dealerships Verify Income?

Do Car Dealerships Verify Income?

Yes, is the short answer to whether car dealerships verify income. Car dealerships are prospective lenders. Therefore, they want to know if you can make the payments for the car you purchase. All dealerships go through a verification process in which they check to make sure you have a reliable income and are stable enough with your income or employment to make timely payments. Many dealerships work with outside financing companies, and they need as much information as possible to get you approved for the loan you desire. Some dealerships have in-house financing, but they still go through the same process they would go through even if they didn’t offer it.

It’s best to visit the dealership of choice with your information ready to be presented. You will need to confirm your income, the time you spent with your current employer and your address. You don’t necessarily have to have income from a traditional employer, but you must show that you make a consistent income that does not vary. Finance specialists will review your income and calculate the amount you can afford to pay each month. The lender will consider other factors such as your payment history and credit score before it issues its final approval.

The main purpose of the income check is to ensure that you do not get into a loan that you will struggle to repay. The lenders want to protect themselves as well as their customers so that everyone is happy with the purchase.

When you visit the dealership, you should bring at least four pay stubs. If you do not have regular employment, you can bring a statement from your social security, government assistance or other income sources. The agents will consider all the information you give them and will make their decision based on that. By bringing in the proper documentation, you can speed up the application and secure decent loan terms.