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
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. “
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