Can a Stay-at-Home Mom Buy a Car Without Her Husband?

Stay-at-home moms don't get paid in money for most, or all, of the work they do. For many women, this works fine because they enjoy spending time with their children more than they would enjoy the financial benefits of an outside job. However, if a stay-at-home mom needs to purchase a vehicle, she may run into problems because of her lack of independent income. However, she might be able to get a loan on her own if the family can afford a large down payment and larger monthly payments on the vehicle.


Higher Down Payment

If you have good credit and a substantial down payment, you might be able to get a car loan even though you do not have proof of income. Borrowers who do not have proof of income, such as stay-at-home moms who depend on their husbands' income, represent a greater risk to creditors because there is no proof that they can afford to make monthly payments. Thus, lenders require a larger down payment to help minimize their losses in the event they must repossess the vehicle.

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Higher Interest Rates

In addition to higher down payments, borrowers who do not have an independent source of income may have to pay higher interest rates. Lenders use the same logic to justify these rates as they do to justify higher down payments. If you do not have a source of income, paying higher interest rates helps protect the lender against potential loss if you fail to make your payments on time.



If a lender approves your vehicle loan, read the loan paperwork carefully before signing. Ask the lender to clarify anything you do not understand and make sure that the paperwork states clearly that you are approved for the loan. Cars Direct says that scammers sometimes provide fake loan paperwork to people without income to bilk them out of sizable down payments. In addition, a loan agreement is a legally binding document, so you should never sign unless you understand exactly what you must pay each month to avoid repossession.



Since getting a loan with no income is more expensive than getting a loan if you are working, you may want to get someone to co-sign your loan. If you do not want to ask your husband to co-sign your loan, you can ask another relative or friend who has good credit. Remember that your co-signer is equally responsible for the loan, so be extra careful to make all your payments on time.