Question Of The Day: Can I Buy A Car If I Have No Reported Income?

Question: Can I finance a car if I have “no income”? 

Answer: There are many people out there who work hard every day to earn a good living, but never pay taxes. They take a hefty percentage of their income in cash and never report their earnings to the IRS, (aka getting paid “under the table.”) These folks are typically considered to be part of the “underground economy.”

All kinds of non-illicit workers can fall into this category, including nail technicians, hair stylists, waiters, and baby sitters. And just like members of the traditional economy, these workers need to get auto loans from time to time. You might think that dealerships would be quick to turn down members of this economy, but it turns out that they have as much of a chance of receiving financing as anyone else — anyone else with good credit, that is.

“If you are a credit-worthy person and you can prove that you have paid your auto bills and other bills without a problem, people don’t care where [the money] comes from,” says Gary Flom, president and CEO of multiple auto dealerships throughout New York, including Jaguar Land Rover Manhattan. “If you’re just starting out, then it matters, and they will take into consideration your income, credit status, etc.”