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Can You Use Your Spouse’s Income on an Auto Loan Application?

You can only use your personal, verifiable income to secure an individual auto loan. The reasoning is pretty easy to understand:  you cannot obligate another person’s income. Since you can’t do that, the lender would have no recourse to recover unpaid funds from the other person.  Most lenders require a minimum monthly income of $1500 a month, before taxes.

Have sufficient income?  Apply today for the loan you need.

Options for Those with Insufficient Individual Income

What do you do if your income is insufficient to secure the car loan you want or need? You have a few options. If you are married, you can have your spouse apply for a joint auto loan with you. If you do not have a spouse, your only recourse may be finding a co-signer for your loan. In either event, the income of the other individual will be considered for the loan. They will also have to agree to the loan terms and agree to be liable for the loan if you fail to pay. As you can see, this can make many people wary of co-signing a loan.  The responsibilities are nearly as significant as those of the primary borrower.

If you do not have an income that is high enough to secure the auto loan you want, you may want to reconsider buying that particular vehicle. You should never take on an auto loan that will tie up more than 10 percent of your total income after taxes. This is the amount that most lenders use as a guideline to define your ability to repay a loan. A larger percentage of your income would endanger your ability to stay up on maintenance, repairs, fuel, and insurance premiums. That means that a large repair bill may tempt you to miss a payment to cover it. If the bill is too large, you may skip the repair and stop paying for a vehicle that doesn’t run anyway.

Found a co-signer?  Ready to get started?  Apply here.

About the Author

The author has many years of experience in automotive finance and insurance. However, each consumer's situation is unique. It is best to contact a finance specialist for further assistance.
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