Are you ready to buy a new car? Before you can buy a car you will need to prove that you can pay for it. This means that you will need to show proof of income.
Showing proof of income can be straightforward if you are a salaried worker. If you are not then things can get a bit more tricky.
However, it is not impossible. Take a look at how you can show proof of income whether you are a salaried worker or not.
Proving Income for Salaried Workers
If you are a salaried worker then you will need to get an employment letter and a few of your last pay stubs to prove your employment. Your employer may use a payroll check template to show your earnings, the hours you worked, and the amount you were paid.
The template may also show your year-to-date payments and deductions, all of this information will give a lot of information about the state of your finances. Bear in mind too that they are also likely to take a look at your credit score to determine your eligibility for getting the car.
Non-Salaried Work
Even if you are a salaried worker you may have a side hustle that helps to balance your income. You can use proof of this extra money to help you get a car. If you are self-employed you can also prove your income to get a car.
You can do so by showing your contracts or by showing your bank deposit history. Letters from those you have worked with will also help to prove your income.
If you are getting income from rentals, child support, legal settlements, and social security gather these documents because they are also vital to showing proof of income.
Tax Documents
Your tax documents are an excellent way to prove your income since they are considered to be legal documents. However, you may run into issues retrieving these documents if you did not keep copies.
You can use last year’s tax return, this document will contain all your sources of income. Your wage and tax statement are also important, this means you will need your W-2 form from all your employers so that you can prove your income.
Get Your Dream Car
Now that you know exactly how to show proof of income it is time to get your dream car. If you can provide more than one proof of income document then you should do so.
The more documents you have the more air-tight your case will be. If you had trouble retrieving the documents that you needed it is a good idea to keep a folder of all your pay stubs, tax documents, and bank statements in order to have proof of income readily available the next time you need it.
If you would like more informative tips please visit the how-to section of the website.
