You can still get a car loan if you’re an independent contractor and have bad credit. But, because you’re a 1099 employee, you need to bring in additional documents to complete your auto loan application and prove that you meet the lender’s income requirements.
One may also ask, how do you buy a car if you are self-employed?
When you’re self-employed, you need to provide proof of income by bringing in copies of your most recent tax returns. As for how much you need to make, most subprime lenders ask for a minimum of $1,500 to $2,000 a month net income after expenses as reported on Schedule C of the federal income tax form.
- Tax returns and tax transcripts. In lieu of a W-2s or pay stubs, some lenders may request several years’ worth of tax returns or tax return transcripts to verify your income. …
- Bank statements. …
- Collateral. …
- A co-signer.
Moreover, what can I use as proof of self employment?
For proof of self-employment:
- state or Federal employer identification numbers,
- business licenses,
- tax returns or 1099s,
- business receipts, and.
- signed affidavits from persons verifying the individual’s self-employment.
What is the minimum income for a car loan?
Minimum Income Requirement: All lenders require you to make a certain amount every month. While it can vary, the typical monthly minimum income requirement many special finance lenders have is $1,500 to $2,000 before taxes are taken out.