A car loan differs from ordinary consumer loans not only in the purpose limitation, but also in the credit protection associated with the transfer of ownership of the financed vehicle. However, financial institutions typically require proof of salary to be presented prior to approval of a vehicle loan so that they can be certain of the applicant’s ability to repay the loan properly.
A car loan without proof of salary makes sense if the vehicle buyer receives a strongly fluctuating salary, the amount of which is sufficient for the timely payment of the loan installments. Fluctuating income is not only achieved by freelancers and the self-employed, but also increasingly by employees with flexible employment contracts, which, depending on the order situation, work more than the minimum weekly hours promised in the contract. Regardless of not having to provide proof of salary, the lender asks the average monthly income, to which an honest answer is essential.
To buy a cheap used car, the vehicle buyer can take out an ordinary instant credit without proof of salary instead of a special car loan. This credit is not tied to the purpose of the vehicle purchase, so that the vehicle is not assigned as security. Some credit institutions offer the option of obtaining a typical car loan without proof of salary if the buyer finances at least a third of the purchase price as a down payment.
This amount must not come from another borrowing, which can be determined from the Credit Bureau information. Taking out a car loan without a salary slip from an independent commercial bank offers the vehicle buyer the opportunity to negotiate an attractive discount on the list price as a cash payer in the dealership.
It is easier for the manufacturer’s car bank to grant a car loan without proof of salary to the dealer than an independent commercial bank, as it belongs to the group and is interested in selling the vehicles. The best chance of getting a car loan without proof of salary from the manufacturer’s bank is if the vehicle buyer chooses a model with weak sales.
The corresponding wagons offer the additional advantage of financing at extremely low loan interest rates, even zero percent financing is possible in many cases. Granting a car loan without proof of salary by making a large down payment is also easier in a car dealership than in a neutral commercial bank, since this can also be done in the form of returning a used car.