Auto loans and related activities: what you need to know


It seems like everyone has a sideline these days, or maybe several. Side activities are a great source of additional income, but if you need a car loan you must also have a regular full-time job, otherwise you might not qualify.

Auto and employment loans

Most lenders who work with borrowers with poor credit require that you have a minimum income of around $ 1,500 to $ 2,500 from a single source of income. Subprime lenders generally prefer the W2 job, which you must prove with computer-generated check stubs showing cumulative income for the year.

If you rely on side activities or odd jobs to pay the bills, you will likely only be able to use your most stable source of income to qualify for a car loan. Even if you are only working several part-time jobs, you are going to run into this problem.

However, as long as you can get the minimum amount eligible for a job, your extra jobs can help show that you can comfortably pay off your loan.

Side Hustles and DTI

Your debt-to-income ratio, or DTI, tells a lender how much of your pre-tax income is used by your regular bills, such as loans and credit cards. This is where a side crush can really come in handy. Once you qualify for a car loan, your lender must assess the amount of a car loan they need to approve you for. To do this, they need to make sure that you don’t go bankrupt just by paying for a car.

So, to make sure you have enough disposable income, they calculate how much of your income has already been used. The trick here is that while only stable income is acceptable for loan qualification, all your income is combined to get your gross monthly income for a DTI calculation.

Additional income and down payments

Another great way to lend a helping hand is to turn that extra cash into a down payment. If you are a borrower with bad credit, you will likely need to make a down payment of at least $ 1,000 or 10% of the sale price of a vehicle.

The amount of the down payment varies depending on the lender and the situation, but you should know that paying as much as possible is one of the easiest ways to save money on your car loan.

Ready to put your extra work to work?

If you’re ready to take out your next car loan, we want to help. TO Auto Express Credit we know what it’s like to have a bad credit in your path, but we also know that it doesn’t stop you from getting a car loan. We can help you find the right dealer for the job who has signed up with lenders to work with unique credit situations.

Simply complete our quick and free auto loan application form and we’ll get to work connecting you with a local dealership.

About Galen A. Williams

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