How Many Pay Stubs Do I Need for a Car Loan?
Chris is Head of Content for FindTheBestCarPrice and is based out of Philadelphia, PA. As a seasoned automotive industry analyst and car enthusiast, he ensures the highest level of quality across all our content and curates our picks for the best deals each month.
Chris studied information systems and marketing at Drexel University and writes about a wide range of topics ranging from car buying tips to troubleshooting common mechanical issues.
When he’s not thinking about cars, he likes to stay in with his dog and make an “attempt” to finish a crossword puzzle (he’s not quite at the Saturday/Sunday level…yet). As a former cheesemonger, Chris still has a “sharp” passion for all things cheese, and his fridge is always loaded with it!
Chris also has a passion for things that go fast, and drones are no exception. He spends some of his time writing for Dronesourced.
Many car buyers look to finance their new car purchase.
But you won’t easily get approved for a car loan unless you meet all requirements, which includes providing your pay stubs. But how many pay stubs do I need for car financing?
Most times, you need at least two months' pay stubs. Some lenders may request more than two pay stubs, but “two” is usually the standard.
But as I've learned from firsthand experience, you don't always need pay stubs to prove you have enough income for the loan.
In this article, I break down the different requirements for a car loan application and dive deeper into how many pay stubs you need for a car loan.
Key Takeaways
- Many financing companies require at least two pay stubs for car loan applications.
- Pay stubs help serve as proof of income and adequate funds.
- You may also need to provide additional financial documents, like tax returns, credit card statements, or bank statements.
- Every lender has different requirements, so be sure to ask ahead of time.
Table of Contents
- Key Takeaways
- Car Loan Requirements
- How Many Pay Stubs Do I Need for a Car?
- Do You Need Pay Stubs To Get a Car Loan?
- Why are Pay Stubs Important for Car Financing?
- Does Showing Pay Stubs Increase My Chances for Getting a Car Loan?
- Keeping Accurate Records is Important
- Final Verdict
- Best Car Deals by Category
- Frequently Asked Questions
Car Loan Requirements
Car lenders ultimately want to ensure that you can pay back the loan. Pay stubs are not the only documents that qualify you for a car loan or financing plan. Therefore, they often require the following information:
- Proof of steady income (pay stubs are one option for this)
- Bank statements from the last 1-2 years
- Tax returns from the last 1-2 years
- Credit card statements or financial aid applications
- A valid driver's license
- Proof of residency
How Many Pay Stubs Do I Need for a Car?
The standard number of pay stubs requested for a car loan is two months.
But, every lender has its terms and requirements – no two different lenders have the same terms. That said, the number of pay stubs you may need to submit depends on the car finance issuer or lender.
What if I'm Self-Employed?
If you’re self-employed or own a business, you must provide your pay stubs or other relatable finance documents about your business or firm.
The pay stubs confirm your eligibility for the car financing plan you’re about to take for your new car.
Do You Need Pay Stubs To Get a Car Loan?
Maybe, but most often, yes you need pay stubs to get vehicle financing.
Many lenders request this document before funding your new car purchase.
But, if you have a strong credit score, some lenders would process your car financing request without asking you to submit a pay stub.
If you’ve worked with an employer for two years or more, some lenders won’t need you to submit a pay stub.
Why are Pay Stubs Important for Car Financing?
Pay stubs are important because they are used to verify your income information on tax returns and other financial documents.
They include helpful details like:
- Gross income
- Net income
- Employment details
- Pay periods
- Deducations
Whether you work as a full or part-time staff with an employer, you may need to submit at least one pay stub each for the employers you work for.
Car Loans Require Proof of Income
If you don’t have a pay stub to submit, some lenders may accept other documents, such as:
- employment letters
- bank statements
- recent tax returns
Does Showing Pay Stubs Increase My Chances for Getting a Car Loan?
It might.
Some people submit their pay stubs when trying to finance a car (even if the lender didn’t request such documents).
It can actually boosts your chances of getting approved for a loan faster.
Keeping Accurate Records is Important
As a general rule, always keep track of financial records (including pay stubs). Even if you do not plan to buy a car soon, accurate records will simplify the process in the future.
Stay organized by sticking to a file system to store pay stubs and other relevant documents. Additionally, you should review this information yourself to monitor your income so you can accurately plan for purchases like a new car.
Final Verdict
Many lenders require at least two pay stubs for car financing, but they may also request credit card statements, bank statements, or other proof of income.
However, each lender has its own requirements. Be sure to communicate with your prospective lenders to know exactly which documents you need.
Streamline the process by keeping good records of your finances.
If you're planning to buy a new car, check out our ultimate guide on buying a new car!
