Only a few vehicle purchases can be made without a car loan. The loan interest is cheap when it comes to vehicle financing, since the vehicle itself serves as loan security. However, banks typically require proof of income so that they can assess the ability to repay the car loan. The salary statement usually serves as such, the self-employed and freelancers usually submit the last tax assessment.
Why do car buyers want to take out the loan without proof of income?
In most cases, the reason for a desired car loan without proof of income is that the vehicle buyer acquires income from different sources in addition to his main earnings and has already had the experience in previous loan applications that financial institutions often do not take additional income into account in the household bill.
If the loan applicant calculates his monthly income himself, he takes into account all incoming payments. If the income documents are not submitted, the bank cannot change this invoice by subsequently ignoring income components. Customers are careful not to deliberately misrepresent their income levels when applying for a car loan without proof of income so that the lender cannot terminate the loan for deliberate misleading purposes.
When can car loans be taken out without proof of income?
If vehicle buyers opt for an older used car with a correspondingly low purchase price, there is a possibility at a commercial bank to obtain the necessary car loan without proof of income. However, there is a greater chance of lending without submitting income receipts when borrowing from the dealer, since the car bank, as part of the manufacturing group, is also interested in selling the car.
In many cases, the latter is ready to grant the car loan without proof of income if the customer can make a down payment of around a third of the vehicle price and at the same time has Credit Bureau information without negative entries. The special payment can be made from existing financial assets or partly through the sale of a used car. As a rule, the payment of the down payment by taking up an additional loan is not recognized, especially as this results from the Credit Bureau information.
On the other hand, it is possible to use existing credit lines such as a disposition loan or a credit line, since the Credit Bureau is only given the grant and not the actual drawdown. The credit default risk is manageable for the car bank, as it insists on the security transfer of the car and uses it if the repayment is incorrect.