Does my income affect my car loan approval?

Yes. Lenders look at your income and your debt-to-income ratio, which compares monthly debt payments to gross monthly income, to judge whether you can handle a new payment. Some also apply a payment-to-income limit. Higher, stable, verifiable income improves approval odds and may help with your rate. Lenders may verify income with pay stubs, tax returns or bank statements, so report it accurately on your application.