The classic way to convince a bank of the need for a car loan is to say that you need the vehicle to get a job or keep your current job. Financial institutions usually have to bow to this argument, otherwise they would endanger the creditworthiness of their customers. But of course the financial institutions require proof of salary to see what the car is really needed for. But what if you want a car loan without proof of salary? See web-documentation.com for a write-up
Which documents actually act as proof of salary?
Banks are not only requesting three different forms of proof, not just for car loans, but for all types of loans, which, together with the Credit Bureau entry, should give them an idea of the customer’s creditworthiness: These include copies of the latest salary slips. Most of the time a bank asks for the last three copies, a voluntary self-declaration has to be filled in and a copied copy of the employment contract has to be submitted.
It applies to all self-employed that they have to submit the latest income tax assessments and the current business evaluation. The salary can be determined from all these documents. So if you want a car loan without proof of salary, you are basically just signaling that the bank is willing to check your Credit Bureau entry. Of course, this is not enough for financial institutions.
A car loan without proof of salary: the conditions of the banks
Many financial institutions are fundamentally prepared to grant a car loan without proof of salary, but of course not without securing themselves fundamentally. If a borrower refuses to prove his creditworthiness (because the income statements ultimately do nothing else), the bank will require that the borrower secure the borrowed money in another way. First of all, this means that the bank remains the owner of the new vehicle and probably also keeps the vehicle registration document until the loan has been repaid in full. You also have to prove that you have assets that can be attached and monetized if necessary to repay the loan.
Household appliances or real estate are suitable for this. If you do not want this, you have to try to find a person with the greatest possible liquidity who signs the loan agreement with him and uses it as a guarantor. This scenario occurs especially when young adults want to buy their first car without a job. Then the parents usually sign. Of course, without a proof of salary, the car loan is not as high as it could be if you had proof of your wages.
The suitable loan offers can be found on the Internet if the house bank is not willing to grant a corresponding loan. You can either go directly to the banks’ websites and find out about the loan terms or search for independent loan comparisons that provide you with the details of the various auto loans and their advantages.