What counts as proof of income for a car loan?

I want to get a car loan, but the lender told me I need a bunch of documents to proceed. One of them was proof of income. How do I show proof of income?

Answer
Proof of income is one of the many documents you need to successfully qualify for a car loan. But don’t worry! You have several options to prove you’re rolling in dough, including:
  • Pay stubs
  • Tax returns
  • W-2s
  • 1099s if you’re self-employed, a freelancer, or an independent contractor
  • Bank statements
The past three to six months of pay stubs are the most readily accepted proof of income, but the others should still work, depending on your employment situation.
If you’re a freelancer, independent contractor, or self-employed, the car loan process is a bit more involved, as your income may fluctuate. Prepare yourself for this situation by having proof of up to a year or so of income. You may even want to put together a profit-loss statement to more adequately represent your finances.
Since you’re getting a car loan, you also need to think about insurance. By using the Jerry app, you can sign up in less than a minute, compare quotes from reputable insurers, and find the best price for your coverage needs.
Eric Schad
Answered on Nov 15, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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