Claiming What I Make & Car Buying???
Ok so I was at the car dealership yesterday and my dad said he'd co-sign a loan for me because I don't have any credit. Well the sales man was telling me that if I make over $1800 a month I could sign for it myself but I have to have a paycheck stub. I didn't want to tell him I'm a stripper and I tried to ask about claiming tips and he said I can't claim tips, it has to be a pay stub.
So how do I claim what I make at the club and how does that work? How do I show what I make so I can buy a car? I have a day job but I don't make enough to qualify for the loan at the day job?
Shayden
Re:Claiming What I Make & Car Buying???
You're in a bit of a bind because you get paid in cash. Your best bet might be to show a bank statement with a history of deposits, or a tax return showing your self-employment income. If they will accept a tax return, they will probably only accept one with a paid preparer's signature. With TurboTax and other programs, its too easy to make up a dummy tax return.
Re:Claiming What I Make & Car Buying???
The point here is that the car salesman is complying with lending requirements from the banks or finance companies which are providing the loan. Banks want to see dependable regular income in the absence of assets/collateral. Dancing is at the bottom of the bankers' lists in regards to occuptions which provide a regular income with long terms stability, whereas an employee pay stub from a major corporation is at the top of the list.
A few options - #1 show 2 or 3 years worth of tax returns which prove you are able to earn money consistently. #2 put down a 50% down payment, which would mean that the bank would actually make a profit if you default on the loan versus losing money. #3 show that you have other assets (bank account, stocks, bonds) which have an equal or greater value than the price of the car which you can pledge as collateral.
Re:Claiming What I Make & Car Buying???
If you have good enough credit, you can get a stated income loan, which means they dont ask you to prove your income. Since you probably dont have alot of credit, and you are a first time buyer, your dad will have to co-sign or purchase the car in his name only. Then what you do is make your payments on time for 12 months, and keep all cancelled checks. Also, join a credit union, which has less strickt lending guidlines. After 12 months, bring the 12 cancelled checks IN YOUR NAME to the credit union or bank that you have the checking account in, and ask to refinance the loan in your name. The cancelled checks are your proof of payment, and you should be able to get a loan. keep your credit clen, because later, when you buy a house, you can get a stated loan and not have to prove your income. I know because I used to be a finance manager for car dealers, and now I am a mortgage broker. The most important piece of advice I can give you is MAKE YOUR PAYMENTS ON TIME!!!!!! your credit is your most valuable asset when you earn your living in cash. Good luck!
Re: Claiming What I Make & Car Buying???
what is a cancelled check? finance dummy here.....i just know what i got in the bank,thats all.
Re: Claiming What I Make & Car Buying???
oh btw.... i bought my first car, no co signer.... claiming my tips only,no problem. he didnt ask to see anything....i got it from a nissan dealership in florida.
Re: Claiming What I Make & Car Buying???
when you write a check it comes back to the bank after whoever you wrote it to cashed it or depoited it. That is a canceled check. I guess I'm old because I recall my banks sending me all my checks back with the statements but somewhere along the way they seem to have stopped doing that.