A Quick Guide to the Documents Needed for a Car Loan
Buying a car is one of the most exciting purchases you’ll make in your lifetime. Yet, 87% of Americans dislike at least one aspect of shopping at a dealership.
One reason the car shopping process is draining is that it can take a long time. Fortunately, if you how to prepare beforehand, the whole process can be a lot easier.
We’re here to help you do just that. Keep reading to see an overview of the documents needed when looking at car finance Melbourne, so you know what to bring and how to get the best car loan from any institution whether that’s a dealer, bank, or broker.
As a result, you’ll be able to hit the road faster with your new wheels.
Before you can buy a car, you’ll need to be able to prove that you are who you say you are. That means you need to bring proof of identification with you, in the form of either a driver’s license, passport, or other government-issued ID.
In most cases, an ID that shows your picture and full name should be sufficient, but some lenders may require additional forms of identification.
Proof of Insurance
According to state laws, you must have car insurance before putting a car on a road. Lenders need to do their due diligence so they know they’re not selling a car to an uninsured driver.
Read Also: 3 Things To Consider When Buying a Car
So, bring proof of your insurance with you, to show that you can legally purchase and drive a vehicle. If you don’t have coverage before going car shopping, the lender at the dealership may be able to call an insurance provider to set you up with a policy, but you might end up with a higher rate than you would if you shopped around first.
Proof of Income
The fact of the matter is that no lender will approve you for a car loan if they don’t think you can afford the monthly payment. You’ll need to provide proof of income in the form of past pay stubs when you get to the dealership.
If you are self-employed, you can create and print your own pay stubs to show your average income. Just be sure to make check stubs first before applying for a car loan, so that the process is as easy as possible.
Proof of Residence
You should also be prepared to confirm your address as it’s written on the loan application. The best way to do this is to bring a legitimate piece of mail, such as a utility bill to show proof of your address.
A lease agreement, bank statement, or homeowner’s/renter’s insurance policy are also valid ways to show proof of residence.
Unsurprisingly, lenders are wary of approving loans for people with a history of poor credit.
While you don’t need to bring a credit report with you, be prepared for the lender to pull your credit and financial history before deciding whether to approve you for a loan.
Now You Know the Documents Needed for a Car Loan
After reviewing our list of the documents needed for a car loan, you’re ready to start the car shopping (and buying!) process. Now you’re one step closer to getting behind the wheel of your new ride.
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