How Many Pay Stubs Do I Need for a Car?

How Many Pay Stubs Do I Need for a Car

Many dealerships would want to get you to pick up a car financing plan. Well, car financing or car loan is one of the payment platforms embraced by quite a number of new car buyers.

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 lenders, banks, or dealerships that offer car loans would request at least two months' pay stubs. Some lenders may request more than two pay stubs, but “two” is usually the standard.

In this article, we’d analyze the different requirements for a car loan application, but with a major focus on pay stubs.

How Many Pay Stubs Do I Need for a Car?

Actually, every lender has its own 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. However, the standard number of pay stubs requested for a car loan is two months.

You have to submit the pay stubs from your employer; 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.

But generally, pay stubs are not the only documents that qualify you for a car loan or financing plan. Other documents to bring along may include a valid driver’s license, insurance card, trade documents, and proof of residency. You may not need all of these in most cases, anyway.

Pay stubs are more important because they are used to verify your income information on tax returns and other financial documents. 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.

Do You Need Pay Stubs To Get a Car Loan?

Most definitely, many lenders would request this document before they can fund your new car purchase. But, if you have a very 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 want you to submit a pay stub.

So, whether or not you need a pay stub for a car loan depends on quite different factors, especially the loan issuer. Furthermore, if you don’t have a pay stub to submit, some lenders may accept other documents, such as employment letters, bank statements, or recent tax returns, as proof of income.

Well, some people submit their pay stubs when trying to finance a car (even if the lender didn’t request such documents); it actually boosts one’s chances of getting approved for a loan faster. It’d be nice to say that you should compare car loan terms from different companies before settling with one and submitting the requirements.

Frequently Asked Questions

Are pay stubs really necessary for a car loan?

Well, it depends on the lender or bank; some lenders would insist on seeing at least two recent pay stubs before approving you for a car loan. Of course, there are other conditions that, if met, you won’t need to submit pay stubs before your car loan will be approved - it all differs and is largely dependent on the loan issuer.

Who gets denied a car loan?

Apparently, if you fail to submit all listed requirements, including your pay stubs, your application for a car loan won’t be approved. Also, you won't be approved for such loans if you have a poor credit score, irregular employment record, or other troubled financial documents. Anyone who satisfies all requirements from an issuer will definitely get their loan approved.

What can you submit in place of pay stubs?

If you don’t have pay stubs to submit, there are other documents you can submit, such as your bank statements from about three months before, or bring in your W-2 form. Feel free to ask the loan issuer what documents you could submit in place of pay stubs.