Can I Fake Proof of Income for an Auto Loan?

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Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.

, - December 14, 2018

Faking proof of income to get an auto loan is illegal. This is considered fraud, and if you decide to use an online paystub generator, know that lenders can verify if it’s false and you could be subject to legal action if you lie on an auto loan application.

You may not need to fake your income to get an auto loan. There are many different types of lenders that can assist you in the car buying process, no matter if it’s under the table income, tip income, or if you’re a regular W-2 employee and have low income.

Consequences of Falsely Reporting Income

When you create a fake pay stub and submit it to a dealer or lender, you’re committing fraud. Fraud is the “wrongful or criminal deception intended to result in financial or personal gain,” according to According to FreeAdvice Legal, there are three main types of fraud:

  1. Consumer fraud – Credit card fraud, telemarketing scams, check fraud, etc.
  2. Employee fraud – An employee accepts bribes, sells trade secrets, or embezzles funds, etc.
  3. Fraud committed against a governmental institution or business – Insurance fraud, tax fraud, counterfeiting, healthcare fraud, etc.

Depending on the severity of the fraud committed, it can be considered both a criminal and a civil offense. As for the penalties, FreeAdvice Legal states:

“Criminal penalties vary widely depending on several factors including the type of fraud and the amount of money involved, but can range from suspended sentences, and probation and fines to prison sentences of up to fifteen years. Generally, however, fraud is a felony charge with a potential sentence of six months to five years.”

How Lenders Spot Fake Pay Stubs

If you’re required to show proof of income, the lender is going to verify that the information is correct. You can count on the fact that they’re going to contact your place of employment and verify that you work there. If you’re self-employed or an independent contractor, your tax returns are your proof of income.

In addition to contacting the the buyer’s employer or personal references, auto lenders can do three things to further verify your income to prevent fraud:

  • They do the math – If the job title doesn’t seem to match the income listed, they do the math and compare. Fake pay stubs are more than likely going to have inconsistent numbers and deductions since they’re created by the person committing fraud.
  • Confirm with 4506-T – If a lender is especially suspicious about a pay stub, they can ask a potential borrower to sign a 4506-T (form for requesting a copy of tax returns). This gets sent to the IRS and, by checking the tax return, lenders can verify the income listed on the potential borrower’s loan application.
  • Check their bank statements – A lender may ask to see bank statements and compare deposits against the stated income to look for any inconsistencies.

Remember, if you choose the right lender to work with, you don’t have to fake your proof of income. Bad credit car buyers with low income should be looking to finance through a subprime lender or buy here pay here dealer. Both specialize in bad credit auto financing, and are willing to work with you and your income situation. However, if you’re concerned about proving your income for an auto loan, your best bet is to work with a buy here pay here dealer. They don’t care where your income comes from – as long as you have the cash, they’re willing to work with you.

Finding these special finance dealerships isn’t the easiest thing to do, and we understand the stress that comes with it. Luckily, we can help you out and connect you to a local dealer that can assist you, no matter your income situation.

The Bottom Line

Don’t commit fraud of any type. It’s illegal, and you’re going to get caught and turned down for a car loan if you try to create a fake pay stub. You don’t need to commit fraud to get approved for an auto loan – what you need is the right lender to work with. If you need help finding a dealership that has the lending resources you need, let CarsDirect help.

We work with a nationwide network of special finance dealers that are experts at helping people in unique situations get the financing they need. Simply fill out our free and easy car loan request form, and we'll get to work matching you with a dealership in your area today!


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Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.

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