What Is Acceptable Proof Of Income In Puslinch?

What Is Acceptable Proof Of Income In Puslinch?

Posted on May 14, 2021

Proof of income is a key requirement for any Puslinch car loan and something we ask all clients to prepare for. But what exactly is acceptable proof of income? Are there rules around what can be used and what cannot be used? Why do you even need to prove income if you provide bank statements?

Let’s find out!

Let’s start at the beginning.

Why you need proof of income for a car loan

You need acceptable proof of income for the same reasons you need proof of ID, of your address and of your savings. The lender doesn’t know you. We don’t know you. While we would love to take you on your word, finance doesn’t work that way.

Much of it is for your benefit.

Lenders need to satisfy themselves that you can comfortably afford to pay the car loan. This is to help you maintain the loan without getting into trouble and to lower the risk for the lender.

You could potentially say anything on a car loan application. Asking for you to prove it maintains the integrity of the system and stops you getting yourself into financial trouble.

What can you use as proof of income?

What you use as proof of income depends entirely on your employment status.

If you’re employed, a pay stub, salary slip, online pay statement or other formal statement of salary should suffice.

Lenders will want to see originals wherever possible but if you get yours online and not on paper, a printout will do as long as it is backed up with your job offer letter or other formal notice of earnings.

If you’re self employed, a contractor or seasonal worker, you’ll need more. You will need any documentary evidence of income such as freelance contracts or work contracts. You will also need your latest tax return to use as proof.

Some lenders will also want to see your business bank account or personal account statements that shows your income. Essentially, you’ll need as much evidence as you can gather to demonstrate your income.

If you get your income from elsewhere, like investments, rent income or something else, any formal proof of that will also work.

Some lenders will accept formal declarations from accountants of income. If you don’t have much documentary evidence showing what you earn, a formal declaration from your accountant outlining your average annual income may work.

Some lenders will accept them and some won’t.

What cannot be used as proof of income?

You cannot use any unofficial documents to demonstrate income. For example, if you get a handwritten note for a day’s work or have to make your own pay slip, they won’t usually work.

Neither will invoices if you’re self employed. That isn’t proof of income as you could create your own invoices out of thin air.

It’s important to be able to prove your income for all kinds of reasons. It’s an accepted part of the car loan process and something we all spend a lot of our time managing.

If you need help with proof of income or applying for that Puslinch car loan, contact one of our team for help.

Contact Unique Chrysler for help, advice and competitive Puslinch car finance and leasing.

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