Car financing

sagowitz

sagowitz

Member
I am having trouble with financing a new car. I own a small business and work from home, so I am able to deduct thousands on my tax returns. I make a good amount of money, but on paper it looks like I make nothing because of this. When I go to finance a new car my credit is good, but they say I don't make enough money...when in reality, I make 10x more than my tax returns say. How do I get around this, like faking a tax return, only legal? Any ideas?
 
jakebtc

jakebtc

Member
put a big chunk down and they don't give a rats arse how much you make...
they look at it as $ in the bank lol
wether they have to come take the car later or you pay it off lmao but true
 
jakebtc

jakebtc

Member
Oh yeah they'll be eatin that up :)
even if you only put like 2 k down and had proof of income they'd love ya
 
phixer

phixer

Active Member
Understand, have your business appraised and use it as collateral for the loan of the vehicle. Not the smartest move because your vehicle is considered a consumable asset, but it will work if your business is valued enough to secure the loan.
You really need to talk to a lender and explain your situation in detail and bring in your tax statements to show how much you paid in and what your earnings were for the previous YR. There are thousands of others in your situation. I dont have any debt so I cant speak from personal experience but I think you would be wise to contact a small business association and ask them the same question.
I hope this works out for you. I assume that since you own your own business you do not receive an annual tax return? I mean you pay your taxes directly each QTR right? If so those records are your proof of income. You pay taxes on your earnings.
Best regards
 
scubadoo

scubadoo

Active Member
Originally Posted by Sagowitz
I am having trouble with financing a new car. I own a small business and work from home, so I am able to deduct thousands on my tax returns. I make a good amount of money, but on paper it looks like I make nothing because of this. When I go to finance a new car my credit is good, but they say I don't make enough money...when in reality, I make 10x more than my tax returns say. How do I get around this, like faking a tax return, only legal? Any ideas?
I find your post quite confusimg. many business expenditures involve a cash outlay. This is then subtracted from your gross income. You were paid dollars and spent dollars. What is left is your net income/profit. You are entitled to certain dedcutions such as the home office but how can this reduce your income down to the level you are describing? What type of deductions are you claiming that does not involve cash outlay? How is your NET profit 10 times greater than your tax return?
Your bottom line is what they look at...net income/profit or loss.
No, there is no such thing in the eyes of the IRS as a faked return that is legal.
 
ruaround

ruaround

Active Member
I fully agree with ScubaDoo... if eveyone could "write off" vehicles, computers and other fixture/assets as business expenses dont you think we all would??? for real if you are making 10 times more than what your "tax return" says then what does your 1099 or your W2 say??? I call BS!!! the IRS or ATF will catch up to your antics... and if you cant finance a 16k car then your tax return must say $800.00...
 
napalmrat

napalmrat

Member
to shed some light:
I work at a worldwide bank and am a loan officer.
the 2 main things a lender will look at is your overall credit rating, and your debt to income ratio (DTI) Federal guidelines do not like the DTI to be over 50%, so even if you lay out 50,000 on a 65,000 car, if the 15000 still owed exceeds your DTI of 50%, you will not be approved.
Also, Section 1014 of title 18 of the us code makes it a FEDERAL CRIME to make false statments, or reports, or willfully over value properties or securites for the purpose of inducing, or influnecing the action of a lender to extend a loan, punishable by up to 10 years in prison for each count, and they will nail you for as many as possible.
IMHO, get a business accountant to help you get your records straight for what you do make and keep it honest, it will catch up to you.
 
phixer

phixer

Active Member
Originally Posted by napalmrat
to shed some light:
I work at a worldwide bank and am a loan officer.
the 2 main things a lender will look at is your overall credit rating, and your debt to income ratio (DTI) Federal guidelines do not like the DTI to be over 50%, so even if you lay out 50,000 on a 65,000 car, if the 15000 still owed exceeds your DTI of 50%, you will not be approved.
Also, Section 1014 of title 18 of the us code makes it a FEDERAL CRIME to make false statments, or reports, or willfully over value properties or securites for the purpose of inducing, or influnecing the action of a lender to extend a loan, punishable by up to 10 years in prison for each count, and they will nail you for as many as possible.
IMHO, get a business accountant to help you get your records straight for what you do make and keep it honest, it will catch up to you.
Well there you have it.
 
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