Whats the whole deal with proof of income. sometimes the Banks/CreditUnions/Dealerships require it, other times you dont even need it. They just run your score and ask for id and you're good to go. (And don't say buy used only. Heard it a thousand times already)
You are self-employed. Think about it. I could go to a bank, show ID, and ask for whatever I want. Without having to verify income, they can not prove to regulators you have the ability to pay back.
Most self-employed people use tax loopholes to the point of abuse. For example, say you are self employed but you reported that your business lost money last year. Oh, those sweet sweet tax funds that are headed your way.
However, now you need a loan. The bank looks it up and guess what? You have no proof of income. "But my business makes $500k/year!" Uh....not according to your tax forms bud.
I'm married to a financial officer for a credit union who has over 20 years experience with this kind of thing. I'm not saying you do that, but if you do....you can't get a loan.
Proof of Income = Proof to Regulators that you can repay the debt. It isn't the financial institution that says no, it's their boss that they have to answer to.
I think it has more to do with the vehicle than the buyer. If a dealership has no money in a car and the buyer puts down a thousand bucks, they agree to "co-sign" with the bank. Otherwise it might rely completely on the buyers credit. Buyer credit means nothing. Money makes the world go round and dealerships play with us. They just take our money in different ways.
@jimz
What if you offer to put down 40% on a 43k vehicle (after taxes and fees) and have good credit, above 730 on all scores. But no solid proof of income (cause I'm self employed)
I have always had credit ratings even if I never borrowed anything. I paid by utility bills, my rents, previous car payments. I went to utility companies, electric/water, and had them print out past payment histories. I had employers write personal references.
To be able to put almost 20,000 down on a car should mean you have banking records, unless you keep the money in your socks or under the mattress. You cannot deal with the business, self employed, and save money, without having credit worthy references.
If the bank and dealership do not want to work with you then perhaps that is saying much more about them than you so move on. Go to plan B.
I even used help from my ex-wives by reporting court record of alimony and child support. Any dollar spent has credit rating quality.