re: Dealer financing a new car - show proof of income or just credit score?

I could make the argument that if I wanted borrow for a $50k car, I'd be better off not putting anything down and would still have those funds if something were to happen and I needed to pay off my remaining balance.

In your scenario, a typical down payment would probably be around $5k (maybe $10k) which means my loan balance would be around $38,400, If the car is worth $39k when totaled out I am ahead $600. But, if I put nothing down, I would have to come our of pocket $4,400 and had that money sitting in my account for 8 months.

Your whole post doesn’t make any sense if you even value the car as an asset. I’d argue it’s a consumable. I have about $18,000 worth of equity I could have rolled over but chose not to because essentially it’s an interest free loan.

In the case of totaling, I bought gap insurance for $300. In that sense that’s less than the interest I would earn over 18 months with the market since that’s the break point of right side up.

You can’t look at vehicles like you would a mortgage. Sinking addt’l money upfront into a rapidly depreciating asset at 0% seems like wasted money to me. The money is better to be wasted and expended over time and than have your money working elsewhere.

This is all assuming you can afford the no money down note per month.

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FYI, have a friend that is self-employed and all they requested for his mortgage was a couple of year's tax returns and to obtain a tax transcript (which they do for W-2 people anyway). They didn't care what his 1099 and proof of income (cancelled checks) said; only mattered what he reported as income to the IRS.

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I'm self employed and have purchased 2 cars this year from different dealerships. Both needed a credit app with stated income only. Credit score over 800

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You can’t look at vehicles like you would a mortgage. Sinking addt’l money upfront into a rapidly depreciating asset at 0% seems like wasted money to me. The money is better to be wasted and expended over time and than have your money working elsewhere.

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Here in lies the problem though, the assumption is this money saved on the down payment is "working for you" elsewhere. Probably like 98% of people are not disciplined to have that, it just goes wasted spent on something else. Again why so many people in this country are upside down on cars to begin with.

Just a rule of thumb I use, to each their own there. I'd rather not be upside on anything, or have to purchase extra insurance to cover myself for being upside down. If I got the cash to remain solvent on a fast depreciating asset, I'm putting it there rather than getting a potential big bill to get out the loan if it gets totaled or buying extra insurance I otherwise wouldnt need.

I get where you are coming from, that advice just typically doesnt work for the vast majority of people by far. Making the assumption people will always just invest the money more than rate you pay is a dangerous game to play. More specifically as a side point what worries me about the vast amount of borrowed money in the market now as it stands because everyone has it all figured out and if I can borrow at 2-3% why not invest it for 8-12% "easy" then find their accounts blown up months or a year later

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Credit score. They don't give a frick about your income as they can repo it

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Typically proof of income is only required for most lenders at 649 or below.

That depends on the bank. Since you are self employed, the bank might have a stipulation where you have to provide POI. Bank statements or prior year tax return should suffice.