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Thread: Can they find out?

  1. #1
    Veteran Member SexeJaz's Avatar
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    Default Can they find out?

    I have a question, How did you guys go about financing a brand new car without them finding out you dance for a living or what not? I mean can they find out if you lie, cause i know they ask where you work and how much you make but, to get a new car financed dose it matter what they know!
    (besides credit)?

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    God/dess Emily's Avatar
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    Default Re: Can they find out?

    The last car I bought, they didn't ask me at all where I worked. If anyone does ask, I say I'm self-employed and leave it at that. All I got was a credit check.

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    Banned Melonie's Avatar
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    Default Re: Can they find out?

    If you have a good credit rating and a fairly sizeable down payment ready, most lenders are not going to ask too many detailed questions. As Emily suggests, simply putting 'self-employed' on the loan application is usually sufficient.

    However, be aware that when your brand new car is registered with your state motor vehicle agency in order to get the registration and license plates, that the motor vehicle agency will also forward information about the sale to state tax authorities and to the IRS. This info will include your name, address and SS#, as well as the value of the car, the amount paid vs financed, who financed it etc. It is surmised that IRS computers check this info in regard to your financial expenditure plus assumption of monthly payments against your previous tax returns. Needless to say, if you reported $20,000 in net income last year but just put $5,000 down plus assumed $500 a month in new car payments, the IRS is going to wonder where your 'extra money' is coming from.

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    God/dess Bunny's Avatar
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    Default Re: Can they find out?

    I was told by a loan officer to NEVER tell anyone on a loan application you make any more than you will claim on your tax return. Other than that, if your credit is decent they could care less how you make your money. I don't think I've ever had a finance company actually verify my employment. In fact, I even financed a car at a great interest rate when my credit was great and technically didn't even make enough to make the payments.

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    God/dess VenusGoddess's Avatar
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    Default Re: Can they find out?

    Quote Originally Posted by Bunny
    I was told by a loan officer to NEVER tell anyone on a loan application you make any more than you will claim on your tax return. Other than that, if your credit is decent they could care less how you make your money. I don't think I've ever had a finance company actually verify my employment. In fact, I even financed a car at a great interest rate when my credit was great and technically didn't even make enough to make the payments.
    Not only that, but you NEVER agree to put down a huge chunk of change and then assume big payments if you are a "student" and have only claimed to make less than $25,000 a year.

    On a loan application you can say you are in whatever line of work you want. However, I would strongly suggest that you "pick a profession" that is not licensed. So...you would never say that you are self-employed as a caterer. Why? Because as a caterer you would need a Caterer's License for Food Prep. Most lenders will not ask what your specific "self-employment" status is...they will ask for bank statements to verify that you have enough in savings...etc...the best word to ever use is "consultant" for something.

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    Banned Melonie's Avatar
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    Default Re: Can they find out?

    In fact, I even financed a car at a great interest rate when my credit was great and technically didn't even make enough to make the payments.
    In past years this didn't matter much, since in the pre-computer network world about the only way that the IRS and state tax people had to 'cross-check' income versus expenditures was to sic several IRS agents on the case to track down financial info. While this was often done against organized crime figures, drug dealers, big corporations etc. the costs involved to the IRS were such that it simply wasn't worth it for them to pursue "average" taxpayers. But today is a different story, with the financial data from the bank savings and checking accounts, loans, investment accounts, credit card transactions, home mortgages, car loans etc. of "average" taxpayers now being only an e-mail away for the IRS.

    The IRS has also enacted a lot of automatic reporting requirements i.e. large cash transactions, state home property deed registrations, state motor vehicle registrations etc. where the IRS doesn't even have to request financial info it is sent to them automatically. Thus you are exactly right that you do NOT want to go on record in any way (i.e. a loan application which will automatically filter through to your credit report which is instantly available to the IRS) with a stated income amount which does not jive with the amount of income you reported to the IRS.

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    Veteran Member SexeJaz's Avatar
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    Default Re: Can they find out?

    Thanks alot for the input guys!!!

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