If you’ve ever gone to a car dealership and tried to get a vehicle you know that they typically require proof of income. This is usually in the form of a pay stub but some dealerships may require tax returns or bank statements. So do car dealerships need pay stubs?
The answer is typically yes but there may be some exceptions. Some dealerships may be willing to work with you if you can provide alternative documentation of income such as a tax return. Additionally if you’re paying cash for the vehicle the dealership may not require proof of income.
If you’re planning on financing a vehicle through the dealership however you will almost certainly need to provide proof of income in the form of a pay stub. The reason for this is that the dealership needs to know that you’re able to make the monthly payments on the vehicle.
So if you’re looking to purchase a vehicle from a dealership be sure to bring along your most recent pay stub. And if you’re self-employed or have other income sources be prepared to provide documentation of that income as well.
Do car dealerships need pay stubs?
No car dealerships do not need pay stubs.
Why don’t car dealerships need pay stubs?
Car dealerships do not need pay stubs because they are not considered to be lending institutions.
What are lending institutions?
Lending institutions are businesses that lend money to consumers and businesses.
What do car dealerships do?
Car dealerships sell cars.
Do all businesses need pay stubs?
No not all businesses need pay stubs.
Why do some businesses need pay stubs?
Some businesses such as lending institutions need pay stubs in order to verify income.
What is income?
Income is money that is earned from employment investments or other sources.
How do businesses verify income?
Businesses can verify income by requesting pay stubs tax returns or other documentation.
Why is it important for businesses to verify income?
It is important for businesses to verify income in order to make sure that borrowers can repay their loans.
Do all businesses verify income?
No not all businesses verify income.
Why don’t all businesses verify income?
Some businesses such as car dealerships do not need to verify income because they are not lending institutions.
Do car dealerships need to verify income?
No car dealerships do not need to verify income.
Why don’t car dealerships need to verify income?
Car dealerships do not need to verify income because they are not lending institutions.
What does it mean if a business is not a lending institution?
If a business is not a lending institution it does not need to verify income.
Do all businesses need to verify income?
No not all businesses need to verify income.
