by "LJ909" (lj909)
Published 04/06/2017 at 14:51
by "LJ909" (lj909)
Published 04/06/2017 at 14:51
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STARS: 1
Could that be whats causing a rise in the number of delinquent auto loans? Dealers not caring that people are really more broke than they appear to be? Recently I’ve encountered people that have gone stated income when they bought their cars. 2 of them pretty close to me.
My coworker bought her car a few weeks ago and said they just took her word for it when asked about her income. She found it odd even though she was honest. It wasn’t until a few weeks later that the bank had come calling for her to verify her income.
Another was my girls sister. Now shes in a situation where she cant really provide proof of income: she works at a weed shop and gets paid cash. Has and has never had any kind of proof of the money she makes. Yet she was able to drive off the lot last October with a brand new 2016 Civic. Has stated income made a come back? Its one of the things that got housing in trouble last decade so I hope not. The car loan bubble is already big enough.
"Ash78, voting early and often" (ash78)
04/06/2017 at 14:57, STARS: 2
Stated income has always been a problem, not just in housing — cars “started it” a long time ago and housing actually followed the trend. A car is a shitty investment for the bank in general, and a low-dollar, higher-volume transaction than a house. These are generally called “low-doc” loans because they close quicker and easier. It’s pretty silly to me.
"Mercedes Streeter" (smart)
04/06/2017 at 14:57, STARS: 0
To be honest I got my new smart without having to prove a single bit of income. In fact, I was unemployed at the time I got the new smart. So long as I had the down payment and valid insurance, they didn’t care how I was going to pay for it.
When I got my first smart, I had to prove for a whole month of income...I can totally believe dealerships (and subsequently, banks) are getting desperate enough not to care where the money’s coming from.
"ITA97, now with more Jag @ opposite-lock.com" (ita97)
04/06/2017 at 15:00, STARS: 1
The only loan I’ve ever had income verified for was the mortgage on the house. I’ve never been asked to provide proof of income on any auto loan, personal loan or credit card account since 2003.
"DipodomysDeserti" (dipodomysdeserti)
04/06/2017 at 15:04, STARS: 3
she works at a weed shop and gets paid cash.
Even if she gets paid cash employers are required to keep accurate records of employee income. How else would they issue her W2 at the end of the year. Unless by “weed shop” you mean an illegal one.
"Nibbles" (nibbles)
04/06/2017 at 15:07, STARS: 2
Yep, stated income on our new truck
Doesn’t matter because I was honest
Butt there you have it
"Wobbles the Mind" (wobblesthemind)
04/06/2017 at 15:13, STARS: 1
Either you are paying cash or the one who agreed to finance you is paying cash. Either way I cant see how any situation would be the dealer’s concern and not your (and your loan provider’s) problem.
Besides, most people get upset when a salesperson ignores them, let alone denies a sell and provides unsolicited financial advice instead.
"benjrblant" (benjblant)
04/06/2017 at 15:22, STARS: 1
I’d like to buy your Chrion because I make $700,000,000 per week.
No, you don’t need proof.
"benjrblant" (benjblant)
04/06/2017 at 15:24, STARS: 4
Please tell me this illegal weed shop is in a laundromat.
"Your boy, BJR" (jerseyshoreben)
04/06/2017 at 15:25, STARS: 0
I know for a fact the dealership I worked at got loans approved that they knew for a fact would end up repo’d. Anything to make that goal. Fuckin’ scumbags.
"MPA" (MPA)
04/06/2017 at 15:31, STARS: 2
I can’tremember the last time I had to provide proof of my income for buying a car.
"LJ909" (lj909)
04/06/2017 at 15:31, STARS: 0
Thats crazy. Especially considering that you wouldnt have gotten approved if you had gotten a house or something.
"LJ909" (lj909)
04/06/2017 at 15:32, STARS: 0
Shows a problem in the industry. Putting people in things they cant afford.
"LJ909" (lj909)
04/06/2017 at 15:33, STARS: 0
They are required yes but that doesn’t mean they do. They don’t do what they are supposed too.
"LJ909" (lj909)
04/06/2017 at 15:36, STARS: 1
That goes on a lot. Its just fucking up the industry and economy.
"DipodomysDeserti" (dipodomysdeserti)
04/06/2017 at 15:47, STARS: 0
That’s some weird looking weed, man.
Oh, shit, that wasn’t weed...
"benjrblant" (benjblant)
04/06/2017 at 15:49, STARS: 1
You get what you get. Move along now.
"Funktheduck" (funktheduck)
04/06/2017 at 16:20, STARS: 0
The only proof of income I had to provide was stated and then I opened up my QuickBooks app (own my own business) and showed it to the salesman, not even the finance lady. I have really good credit so I guess that’s all they cared about
"Funktheduck" (funktheduck)
04/06/2017 at 16:32, STARS: 0
When I bought my Mazda I had bought my business only a few months earlier. So, I only had a rough idea of how much I’d be making (roughly double my gross from the previous year). I had been working with the same salesman since before the business purchase so he had an idea of what was going on.
I got pre approved by a credit union before going in and approved at the dealership by showing them the balance sheet on the QuickBooks app. I just pulled up the report for the year to date and from the date of my purchase to date. CU guy just punched in some numbers in his computer and sales dude just wrote some stuff down.
I honestly had no idea they worked any other way. I thought when they ran your credit they knew your income.
"Ash78, voting early and often" (ash78)
04/06/2017 at 16:35, STARS: 0
Common misconception about credit reports AND scores — neither one knows your income, only your usage of credit (usually in terms of ratios, not absolute numbers). But in many situations, a person with a good score doesn’t need to prove income at all. In fact, many people are offended by being asked for a W-2 because it’s often a sign of a riskier borrower. When I was criticizing Low-doc above, I should have clarified I meant for people in the subprime credit range. I mean, ideally we’d all have to prove income somehow, but a good credit score is usually a solid proxy for “you pay your bills.”
"garagemonkee" (monke)
04/06/2017 at 16:37, STARS: 2
It’s basically the same practice as houses 10 years ago, and this has been growing since the early 2010's. They even have auto-backed securities, because they’re not allowed to make mortgage-backed ones anymore (or they’re hard to sell).
Their thinking is that they can always just repo them, and repo-ing a car is a lot easier than foreclosing a house. Much fewer regulations.
"LJ909" (lj909)
04/06/2017 at 17:02, STARS: 0
Ive noticed that that good credit will often trump everything else. If they see a 790 Fico, nothing else really matters.
"Funktheduck" (funktheduck)
04/06/2017 at 17:04, STARS: 0
Yeah. I learned that’s not how credit scores worked after the fact. It’ll be paid off early anyway and besides the new mortgage (which I was deemed too risky to be added to) I’ll be debt free around the end of the year.
"Funktheduck" (funktheduck)
04/06/2017 at 17:08, STARS: 1
Yeah. I’m not near 790 but I’m definitely in the zone people like.
"E92M3" (E46M3)
04/06/2017 at 17:11, STARS: 1
I don’t know. I tried to get a car loan a while back with a 825 credit score, and they wouldn’t approve me because I had 2 mortgages. (Not really, I have mine, but my name was still on my ex-wifes mortgage). They said I would need enough income to cover both mortgages, and it only be 25% of my gross. I offered to bring them the divorce decree where it states she is responsible for that mortgage, but they still wouldn’t do it.
So, some dealers are doing their diligence
"LJ909" (lj909)
04/06/2017 at 17:16, STARS: 1
They were just idiots. I approve people with loans all the time that are a cosigned for a mortgage with proof that they aren’t responsible for paying it. If you brought proof they shouldn’t have included it in your debt to income ratio.
"NJAnon" (NJAnon)
04/06/2017 at 19:48, STARS: 1
“works at a weed shop.”
cmon lj909 you’re going to just leave us hanging with that? lol
"benchslap" (benchslap)
04/06/2017 at 20:49, STARS: 0
My SO just bought a car through BMWFS and they took his stated income (which was accurate). I’ve never had to prove income for a car loan.
"gmporschenut also a fan of hondas" (gmporschenut)
04/06/2017 at 21:53, STARS: 1
My cousin did accounting for a large dealership chain. I think the rise n 72 month loans was the dealerships way of making the numbers work. people who should have been looking at an economy car at most driving away in a 40+k suv with 84 month loan. people got a car and the dealership meet their numbers. I don’t have any faith in the market watching out.
as for your girls sister she should have a w2.
"E92M3" (E46M3)
04/06/2017 at 22:47, STARS: 0
Yeah, they basically said “have her refinance it to take your name off, and come back”.
It was weird. I showed them I had a years worth emergency fund set aside. Plus i was putting 25% down. So even if they did repo it next month they could sell it for more than the loan balance.
"LJ909" (lj909)
04/07/2017 at 00:21, STARS: 0
Stuff like that is why we’ve seen a rise in the average loan terms. The norm now is 72 months. I’ve seen 96 months some places.
"LJ909" (lj909)
04/07/2017 at 00:21, STARS: 0
Yea that’s weird. They just didn’t want to do business with you.