questions & answers

Question: Can I purchase a new car using my husbands income to qualify for the loan without his name being on the loan application ? The dealership is calling it family income and says I can do it. I think it's illegal maybe even fraud and really don't want to do it. Is it illegal for the dealer to encourage me to use his income for my benefit without his knowledge?

Answer:

There is a couple different ways to look at this. Arizona is a community property state, meaning, once you say “I DO,” anything (monetary included) is part of the community. Simplest way to describe is; technically it’s not your money or his money, it’s the communities. With that being said, let’s look at a “worst case scenario.” If you go through with this purchase and don’t tell your husband and later get a divorce, he would have a good argument that he is not responsible for this debt. This could be considered “Marital waste.” It would be up to your husband to claim this and a judge to rule on it, but it’s possible. Technically, it’s not illegal. The Credit Card Accountability Responsibility and Disclosure Act of 2009, with 2013 amendment, states applicants; if you are over 21 years old, you may list any income you have “reasonable expectation of access.” This goes for a spouse’s income or boyfriend/girlfriend/partner’s income, if you share income/assets. It sounds to me like, you are not comfortable with this dealer. I would suggest you check with the Better Business Bureau and see how this dealer is rated. If you are still uncomfortable, I would suggest seeking out another more reputable dealership.

https://www.ftc.gov/sites/default/files/documents/statutes/credit-card-accountability-responsibility-and-disclosure-act-2009-credit-card-act/credit-card-pub-l-111-24_0.pdf