When we bought our house, we did a no doc mortgage because we are self employed. We are looking to purchase a new truck next year (our current one is going to be 16 years old!), but our income is hard to prove via traditional methods because we write off home business deductions (home office deduction) and our vehicle is used for business as well so it makes our bottom line look too low. I remember that our mortgage company took our bank statements for the past 2 years to see our cash flow/deposits. I'm wondering if they offer no doc car loans as well if the credit score if good enough. We're not buying until next year (considering a Nissan Titan), but I want to check around and see how hard it is to purchase a new one. This will be our first ever brand new vehicle. We've always purchased used and paid cash, so I'm kind of ignorant about auto financing. Any advice would be appreciated. I don't know if it will matter for the financing, but we are planning to put down 10K in cash on the vehicle to keep the payments low.
I don't think there is a no doc auto loan like there is for a mortage, however the stronger your credit then the less informaion you will have to probe. For example if you have a 680 and above (no negative) then you shouldnt have to prove income once you hit 700+ then you shouldnt have to prove anyting.
Call the local Nissan and ask a finance manager. Toyota Financial Services does not require income verification for Exp Auto Fico's of 660 or higher. As far as money down goes, motor corporations don't generally take this into consideration when the matter of proof of income is concerned. However, if you go with a 3rd party lender, they will overlook proof of income with a certain percentage down. I cannot stress enough that dealerships these days, because of the competitive nature, are becoming more transparent. By this I mean, you can call a finance manager, ask him what bureau they pull and what score you need to qualify without income verification, as this information is no longer a trade secret.
Okay now days people think fico is you score on all three reports. the way it breaks down is this fico- experian beacon- equifax emperica- trans union (I dont think i spelled that right) okay almost no banks use trans union for auto loans. There are a few that do (which ones I have no clue) but when some of the larger banks use it, its because they want to verify some of the information that was reported on the either experian and equifax. But rest assured 99% of the banks (that are big on auto loans and leases do not use trans union). there is a good chance that if you are on the west coast the banks will check equifax first if they even check experian. now bear in mind each bank is different and will change from state to state, region to region. On the east coast people will use experian mostly. My understanding is that each bank has a number of different programs based on customers credit profiles, and the region of the country. for example bank of america uses experian i think (I am 99% sure) but based on their guidelines if the dealership pulls equifax and they have a score over 730 not a first time buyer, a trade line (revolving) with at least a 5000 high limit and no derogs then the dealer can go ahead and submit the deal structure, credit app, and the credit report that they pulled. As long as the dealership did NOT pull experian (the report that boa uses) the loan will be approved regardless what boa sees when they pull experian. So experian will experian and simply look for one thing based on the program guidelines on the experian report and that will be the inquries. If they see the dealership pulled an experian. I know this is a bit much but and way off topic so I am going to stop right now. but I wouldnt be too worried about proving income unless your credit is completely screwed. d
Fico is your score on all 3 reports. An empirica or beacon is your FICO score, but a way to differentiate between the bureaus. They are still based on the Fico scoring model. An auto Fico is actually called a FICO II, which weighs auto history higher than any other factor. Transunion is used by Chase, Bank of America, BMW Financial, Mercedes/Daimler Financial (to name a few....) for auto loans on the West Coast.
2 years ago I applied for an auto loan via E-Loan, I was approved for a $30,000 auto loan with no income verification. My scores were in the low 600's. Last year, I went back to E-Loan and applied for auto refinancing to get a better rate. Again, I was approved and shaved 4 percent off my original rate. No income verification was required for the refinancing. Consider E-Loan as it's fast, simple and no hassle.
