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Thread: financing a car?? any help please..

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    Featured Member babybambi08's Avatar
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    Default financing a car?? any help please..

    ok I went to go get my car yesterday.. My boss had gave me a legal document that stated that I made 3000 dollars a month. Which is correct. But I dont have any credit so they said that I would have to have a co-signer or have a pay check that had taxes taken out... I dont have anyone that could co-sign. He said that If I could produce just one paycheck stating that I made about 3000 a month with taxes taken out I would be about to get the car!!

    So I know should get a DBA- which I am because this car is going to be just for work...

    I cant really afford to get a LCC right now, not sure about all that anyways.. but I know about DBA..

    After I get the DBA, and get a tax ID number should I maybe try to get a car with my tax ID?? can you do that or should I just make my self a paycheck? and If I just need to make a paycheck how do I do that?? I dont want to buy a soft ware.. my computer is older and Its slow as it is.. I dont have excel and adobe which is what what they require (the one that I have seen).

    anyone done any of this?


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    Default Re: financing a car?? any help please..

    anyone?


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    Default Re: financing a car?? any help please..

    I wouldn't forge a paycheck stub. Some dealerships call your place of employment (a few of them did for me) and if it comes back that you aren't employed by the company from that stub, you could face charges.

    The dealership that I ended up going through called my club and faxed some paper work to the owner and he filled it out and I got the car. I had no credit or co-signer. Try asking if there is something like that they could do for you.

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    Default Re: financing a car?? any help please..

    Well Its not fraud.. Its pretty much me being a owner of a company and paying myself.. DBA means doing business as..


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    Default Re: financing a car?? any help please..

    Oh, well then in that case...I don't know, sorry.

    I would still check with dealerships to see if there is any paper work that can filled out by employers and sent back. It wouldn't hurt to ask and if you don't feel comfortable asking the dealership that you are buying you car from then ask around to others that way you don't back yourself into a corner when they tell you know then you turn around and do a DBA. Just an idea

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    Featured Member babybambi08's Avatar
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    Default Re: financing a car?? any help please..

    well we already did the paper work from my employeer but its not enough because I dont have any credit.. Im just going to have to find another place that will finance me


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    Banned Melonie's Avatar
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    Default Re: financing a car?? any help please..

    with the new 'income verification' requirements, a DBA alone is not necessarily going to solve your problem. The lender is going to want to see some sort of documented income and/or tax history.

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    Featured Member babybambi08's Avatar
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    Default Re: financing a car?? any help please..

    well I put all my money in my bank account the next day after work.. so I have my bank statements


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    God/dess Zofia's Avatar
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    Default Re: financing a car?? any help please..

    Quote Originally Posted by babybambi08 View Post
    well I put all my money in my bank account the next day after work.. so I have my bank statements
    Excellent first step! Well done.

    Do you have a schedule C for last year?

    XOXO
    Z

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    Default Re: financing a car?? any help please..

    what is that?


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    Default Re: financing a car?? any help please..

    ^^^ the 'independent contractor' business income page from last year's tax return. Again, the lenders are looking for 'official verification' of your income.

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    Default Re: financing a car?? any help please..

    I just started dancing this year =/ I was waitressing.. I never waitressed before and I didnt know that the club only add the tips you get from credit cards.. I tip out 15% to the bartenders and I thought they wrote that down or something.. so It looked like I only made 4000!!!!!!!! I was so pissed when I got my tax return..


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    Default Re: financing a car?? any help please..

    ^^^ well, as far as the credit approval officer at the lending instution is concerned, you DID only earn $4000 last year if that's what you tax return says you earned. And a $4000 'official' income is not sufficient to cover making a car payment on top of paying basic living expenses. This is why you were asked to provide a cosigner ( whose credit rating actually allows the loan approval, and who is legally liable for making your loan payments ) or more recent documentation of 'official' income via a pay stub.

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    Default Re: financing a car?? any help please..

    Quote Originally Posted by babybambi08 View Post
    what is that?
    Businesses have their own tax returns. If your business, stripping in this case, is not a corporation, partnership or LLC, then you report your business income or loss on schedule C of the form 1040. You also report your business expenses. Here is a link to the schedule.

    HTH
    Z

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    Default Re: financing a car?? any help please..

    ^^^ Sofia is of course correct about the mechanism of reporting dancing income to the IRS, but the essential point is being missed. In this day and age, with new regulations in place for lender creditworthiness evaluations and income verification, the fact that you may really have a $36,000 annual income means nothing. What matters to every financial institution is your 'officially reported' income ... which in this case was only $4000.

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    Default Re: financing a car?? any help please..

    ya it sucks I really made about 15k last year.. that was just waitressing...I didnt have to work as much as I do now because I had a roommate... but I have been dancing for about 5weeks.. and I have already saved 2000 dollars.. I bought this computer.. that was 1000, plus I bought clothes,ect.. but the last few (3-4) weeks I have been making 1000 dollars on average.. I am just going to save EVERY penny the next 4 weeks and hopfully I will have about 5000 for my car.. and If they cant finance me with half of the cost of the car.. I dont want their business..


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    Default Re: financing a car?? any help please..

    ^^^ not to rain on any parades, but there's an equal downside if you DO manage to get financed. As soon as the dealer registers the car title, the state motor vehicle agency is going to send an automatic report to the IRS of the buyer's name, address and SS# - the car's value and amount financed etc. IRS computers are then going to link up the SS# of the buyer of, for example, a $20k car who made a $10k down payment, with a tax return under the same SS# which shows that the person who just ponied up $10k in cash and took on $4,000 per year in car payments only declared $4k in total income last year !!!

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    Default Re: financing a car?? any help please..

    and your point is? people can make no money one year and next year buy a 20, 30k car... happens all the time.. most of the time people are in college.. the year is almost half over.... and people buy cars for people all the time and they dont have jobs.. my sister gets a new car all the time.. she never works.. and her dad buys them..


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    Default Re: financing a car?? any help please..

    If you can't get a loan through a car dealer, I suggest looking to other places for financing. Here's one site that offers automobile financing for people with no credit history and no cosigners:

    http://www.rapidcarloans.net/no_cosigner_car_loan.html

    Good luck!

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    Default Re: financing a car?? any help please..

    looks good.. I am going to see about rates soon..


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    Default Re: financing a car?? any help please..

    my sister gets a new car all the time.. she never works.. and her dad buys them..
    Obviously this is an entirely different story. My point was that IRS computers are going to try and correlate major expenditures with equally major declared incomes. When a young person is listed as a dependent on the tax return of a high income parent, the problem is solved.

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    Default Re: financing a car?? any help please..

    they can not and wont try to get any money from me.. my sister is not a dependent on his taxs.. she works about 6 months a year part time.. she got a brand new honda one year.. and a brand new acura two years later.. both in her name..

    And like I said millions of people get cars after college.. and there last tax return they didnt make anything..



    And again.. Im not waitressing anymore.. its a total different job.. Its almost like graduating from college or getting a promotion.
    The IRS cant tell anyone.. oh you us money... It would maybe be different if I only made 4000 and I was trying to get this car back in december.. but its a new year..


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    Default Re: financing a car?? any help please..

    Quote Originally Posted by babybambi08 View Post
    they can not and wont try to get any money from me.. my sister is not a dependent on his taxs.. she works about 6 months a year part time.. she got a brand new honda one year.. and a brand new acura two years later.. both in her name..

    And like I said millions of people get cars after college.. and there last tax return they didnt make anything..



    And again.. Im not waitressing anymore.. its a total different job.. Its almost like graduating from college or getting a promotion.
    The IRS cant tell anyone.. oh you us money... It would maybe be different if I only made 4000 and I was trying to get this car back in december.. but its a new year..
    You are quite right. Gifts happen all the time. I gave my BF a car for our anniversary this year. I can afford it, he lost his job which came with a truck, he needed wheels. No problem. And, I don't expect any audit arising from the gift either. Yes, I filed a gift tax return because the car was worth more than the tax limit. I have no problem burning through some of my lifetime credit for him.

    As a matter of fact, the IRS has zero control over how you spend money unless they have already filed a tax lien. The IRS cannot stop a transaction. If you can get a car financed, you can get it financed. To be honest, the IRS does not even want to stop your transactions. All they want is to collect the amount of taxes you owe on your income. To that end, they will sometimes match transactions to tax returns as a part of their effort to identify tax cheats. Transaction matching is not even their primary means of catching tax cheats. It is more often a means of confirming their primary means, unrelated audits and tips.

    The point though is, if you are seeking financing on your own for a car, you will have to prove your income. This is a change from the way things were done just twelve months ago. That has nothing to do with the IRS though. It has everything to do with the Federal Reserve and state banking regulators. All of whom have tightened record keeping standards for lending. You will also have to prove that your income is sufficient to pay for your purchase.

    The three Cs of banking are having a revival. Collateral, Creditworthiness, and Capability. That is, lenders are evaluating each loan for the following:
    1. Is there sufficient collateral to secure the loan in the event it goes bad. Now, it is all but impossible to get a mortgage without a 20% down payment.
    2. What is the creditworthiness of the customer. That is, is the customer going to repay the loan? Have they paid their loans before?
    3. Does the customer have the ability to repay the loan? That's why lenders require some proof of income.

    The three Cs of banking were common practice in years past. They formed the basis for our very safe and secure banking system for sixty years. Unfortunately in the first few years of this century, banking changed. "No doc" loans became common. Zero down payments became common. Balloon payments. Variable rates. Derivatives. Banking became very risky. Unfortunately, it became too risky and now we are paying the price. But, the silver lining is we are getting back to responsible banking practices. Sooner or later, restoring the three Cs to banking will fix the problem. Fix it far better than all the bailouts the government will throw at the problem.

    HTH
    Z

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    Default Re: financing a car?? any help please..

    well I am going to wait til my birthday.. middle of june.. this week I made 1300 so I have about 2000 saved up.. and If I keep up I want to make up at least 1000 a week.. I wont have my kids next week so Im going to start going to work at open and stay til I make 250 take home. So I should have about 4000 saved for a car..that should be enough for a car about 10k


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