No Income Verification Car Loans: Ways to Get a Car Loan With No Job

Kelly Boyer Sagert

Updated January 4, 2022

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.

If you’re unemployed, you may wonder if it’s possible to get a car loan with no income. This post will walk you through that scenario as well as ones in which verifying your income is the challenge to finding a loan that fits your financial situation.

Can I Get a Car Loan With No Income?

First, there is a difference between a car loan with no income and a no-income-verification car loan. They definitely don’t mean the same thing. The first is suggesting that you have no income while the second seems to say that it will be difficult to verify your income. Plus, having “no income” can mean that you have no income coming in from paid employment (but you may have income from other sources) or it could mean literally no income at all. In general, lenders want to minimize their risk by approving loans where the borrowers will pay what they owe on their car loans and not approving ones where the consumers won’t have the capacity to make that happen. How each lender defines “income” and what’s considered to be enough can vary significantly by the financial institution. To help, in this post, we’ll explore nuances of what a car loan with no income really means and what your options might be.If you’re wondering how to get a car loan with no proof of income whatsoever, then you may have more success at a local dealership that both sells and finances its vehicles. When you go that route, you’ll make payments directly to the dealership rather than go through another financial institution.Be aware: These types of loans typically come with higher interest rates and fees. The repayment term and warranties may be shorter and repossession may happen more quickly if you can’t meet your monthly obligation. Next up are other ways to consider when you want to get a no proof of income car loan from a financial institution.

Getting a Car Loan With No Proof of Income

Because lenders want reassurance that you’ll be able to pay back a car loan, if you have no proof of income, you may need to go one of these routes to get your loan approval:

Cosigner
Cash Out Refinance
Leverage Good Credit Scores
Other Income Sources

Here is more information about each of these strategies.

Cosigner

When you have limited income or can’t prove your income, a cosigner might be the right solution to get a car loan approval. A cosigner is someone who agrees to share the responsibility of paying the car loan and, if the cosigner’s financial and credit scores are acceptable to the lender, this may lead to loan approval even when you can’t verify your own income.

Cash Out Refinance

If you already own a car and want to tap into its equity to get cash for another purpose—medical bills, perhaps, or home repairs—then this is a cash out refinance. Overall, car values are higher now than they’ve been, which means that you may have more equity available in your vehicle to cash out than you realize. You could also combine these two strategies and use a refinance cosigner.

Good Credit Score

Lenders look at two main factors when deciding whether to approve a car loan: income (which, for the purposes of this post, is problematic) and credit scores. So, if one of the two main factors—a person’s credit history—is acceptable to a lender, this may help to overcome some of the challenges with the other factor: income.

Other Income Sources

Perhaps when you say you have “no income,” you’re referring to job-related income. And, although individual lenders have their own requirements for their car loans, there are other forms of income that they’ll likely consider. These can include retirement/pension income as well as disability and Social Security income—and money from investments, including rental properties. If you’re self-employed, even part time, you can often use this income to qualify. You can list child support and alimony, too, although you aren’t required to disclose these types of maintenance support income.If you aren’t sure whether you’ll meet the guidelines for a particular lender, then requesting an auto loan preapproval can help. In this process, the lender will let you know what general kind of offer they’re likely to make, including the amount they’d be willing to finance. This is a conditional offer but preapproval estimates can still provide helpful benchmarks for you as you seek to get an auto loan.

How to Refinance a Car

Here are tips if you want to know how to refinance an auto loan. Ahead of time, you’ll want to find out if they offer no income verification car loans; whether you meet their requirements, including with credit scores; and what the refinance costs might be. Also check to see if your current lender charges a prepayment penalty. If so, is refinancing still worthwhile?Refinancing using the same lender can be easier because that lender will likely already have information about your vehicle and your current loan, including the payoff amount. Just because it’s easier to use the same lender, though, doesn’t necessarily mean it’s the best deal for you. By shopping around, you may be able to find a better one. If so, it’s not that much extra work to provide vehicle and current loan information to your new lender. Some people refinance to obtain lower car payments. If that’s your goal, then check to make sure that the interest rate and term available will allow you to accomplish this and that fees charged won’t cut too much into savings.

Where to Get a Car Loan With No Income

When you’re looking for a no proof of income car loan, you may need to use one or more of the strategies discussed in this post.

The Process to Get a Car Loan With No Income Verification

Here, in general, is how auto loans work. After choosing a vehicle and a lender, you fill out an application. The lender will want to see IDs to verify your identity and proof of your address (as well as previous addresses if you haven’t lived in your current one for long). You’ll provide information about your employment (or current lack of employment/previous employers), income information, and details about your debts. The more information that you have gathered ahead of time, the easier the process will be. As far as how to get a car loan with no proof of income, talk to your lender of choice about the strategies listed in this post, from getting a cosigner to finding ways to verify income that doesn’t come from a job. Not all lenders will be open to making this type of loan and those that are will have different requirements and processes.

The Takeaway

There can be significant differences between getting a car loan with no income whatsoever and getting a no income verification car loan—with each person’s financial situation driving the situation. Someone might get loan approval when they aren’t currently employed if the person has other income sources. There’s also getting a cosigner. This can be true when buying a car and when refinancing one. To find out what car loan refinancing options are available to you, you can fill out an application at Lantern by SoFi.

Photo credit: iStock/Orachon PaksuthipholThe tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.SOLC112204

About the Author

Kelly Boyer Sagert

Kelly Boyer Sagert is an Emmy Award-nominated writer with decades of professional writing experience. As she was getting her writing career off the ground, she spent several years working at a savings and loan institution, working in the following departments: savings, loans, IRAs, and auditing. She has published thousands of pieces online and in print.

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