A Guide to the Paperwork You Need to Prepare for Car Finance
By Motor Match • 24/01/2024
Are you planning on buying a car? With numerous car financing options available today, it can be challenging to choose the best.
If you plan to purchase a vehicle with car finance, there are critical documents you need to prepare. The paperwork involved may seem daunting, but it’s a necessary step. Therefore, to help you prepare for the car financing process, we present a comprehensive guide on the paperwork you’ll need to submit.
Personal Details
The first step in the car financing application process is to provide your personal details. The lender needs to know who you are, where you live, and how to contact you. Personal details include your full name, date of birth, and current address. Ensure that these details on all documents are consistent to avoid any confusion or delays during the application process.
Proof of Address
To secure car finance, you’ll need to provide evidence of your home address. A utility bill or council tax bill dated within the last three months is acceptable proof of address. Ensure that your name and address are visible on the bill. If you don’t have these documents, a bank statement or a mobile contract may suffice.
Proof of Income
The lender will want to know if you have a source of income to repay the car loan. Therefore, you will need to provide your most recent payslip showing your name, address, and proof of income. If you’re self-employed, you’ll need to provide your latest tax return. If you work salary plus commission, you may need to provide bank statements for the last three months as further proof.
Driving Licence
A copy of your driving licence, including your photograph and address, is another critical paperwork you need to provide. Ensure that the address on your licence is the same as your current address. A lender may reject your car finance application if they find a discrepancy in the information provided.
Bank Statement
Some car finance lenders may also require one to three months bank statements to prove your affordability and verify your income. Ensure that your personal details, including your name and address, are visible on the statement.
Buying a car is an exciting experience, but it comes with necessary paperwork that you need to prepare. A lender will use your personal details, proof of address, proof of income, driving licence, and bank statements to determine your eligibility for a car finance loan. Ensure that all the information you provide is accurate and consistent across all documents. This way, you’re one step closer to securing the used car financing option that suits your needs while avoiding unnecessary delays.
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