Problems with financing?

Question

I'm trying to finance a car from carmax, but they want a recent paystub and my boss has been paying us cash only the past month.

if I get him to write me a check and give them his information so they can varify, can that counter me not having a paystub?

Answer 1

Ask your boss for a W2. If your boss and you are breaking the law and not paying income and social security taxes then that's another problem. See what happens when you break the law and force the rest of us to pay more income tax due to tax cheats such as yourself? If you're not a tax cheat, just get the W2.

Answer 2

A paystub will not only show how much your paycheck is, it will show a lender what your year-to-date income is for 2008.

Your lender is simply trying to document their loan file with proof of your income.  And they want to see that the income is ongoing, not just a one time shot.

Having your employer write you a check will not really establish proof of your ongoing income, unless it comes with year-to-date numbers as well.  Simply getting one check written out to you is not proof that this source of income has been ongoing for any length of time.

Lenders have to document their files to show evidence of their borrowers' income.   Lenders are examined on at least an annual basis by federal and/or state regulators, and one of the things they can get cited for is making loans to individuals who can not document their income.

I won't even go into the legalities of what could very well be tax fraud on the part of your employer.

You MIGHT be able to get a loan from a finance company, who's more likely to lend strictly on the value of the vehicle in relation to the loan amount.  But a bank will not (at least they shouldn't) make a vehicle loan to you without having proof of the income level you've established.