How can I get a car loan if I'm paid under the table?

"I work for my family business. However, my dad pays me all cash. Now that I want a car loan, I don't have any pay stubs to show proof of income.

Can I still get a car loan if I'm paid under the table?"

Answer provided by
Eric Schad
Answered on May 26, 2021
“Although getting paid under the table is technically illegal, many small businesses do this to skirt taxes.
Because this is how you’re getting paid, and you can’t really prove any income, you’re not going to get approved for an auto loan.
You might also ask your family if they’ll pay you as an independent contractor (depending on the nature of the work), so you can show proof of income. Keep in mind that as an independent contractor, you not only have to pay income tax (state and federal) but also self-employment tax at 15.3%.
Ask yourself if it’s really worth it to go through all of that for a loan. A better plan is to save up money and buy a car with cash. If that doesn’t work, you might ask your parents to cosign on your car loan if they have good credit. “

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies