To obtain a car loan to finance your new car, you must bring a certain number of supporting documents to the lender when buying a car. These documents to be provided will allow the bank or broker who helps you in your approach to assessing your personal and financial situation in order to offer you a tailor-made offer.
Among the supporting documents requested by all the credit organizations in order to grant you a car loan, we find both supporting documents of your identity but also supporting documents of your income. Depending on the scenario, and in particular, if you buy a new car or from a professional, other parts may be requested.
What you need to bring when buying a car
Any of the following should suffice; driver’s license, identity card, passport, resident card.
Proof of address
Showing proof of residency with a water bill, internet bill, gas bill, landline phone bill and etc.
Social Security Number Or Tax Identification Number
To confirm your identity dealerships will typically need one of these.
Form Of Payment
You will need to bring your form of payment for the agreed down payment in cash check or etc.
Recent Pay Stubs
If you are getting a loan from a dealership be ready to show at least 3 months of pay stubs or bank statements. If you don’t have any income then check out our blog on how to get a car loan without a job or different ways to show income for a loan.
A List Of References
If you don’t have stellar credit dealerships will want a list of references. At 500 Below Cars, we require at least five references.
Vehicle Purchase Information
If you have negotiated a deal with one of the salesmen or women be sure to bring the discount documentation.
Why do you have to provide so many documents for a car loan?
When you apply for a car loan to buy a car, the amount requested can sometimes be very small. Some households sometimes borrow $20,000, $30,000 or even $40,000 to buy a car, while some others settle for less than $10,000.
Are you surprised that you have to provide so many supporting documents when borrowing a small sum? Do you find it paradoxical to have to provide as many supporting documents by borrowing $5,000, $10,000, or more than $30,000? This is not surprising.
IMPORTANT: The law requires banks and specialized credit organizations to check the creditworthiness of borrowers. They must, therefore, protect themselves against any increased risk of over-indebtedness, and limit the risks of non-reimbursement.
This is why financial institutions ask for several supporting documents in order to assess your level of risk. At the same time, banks also consult files made available to them. They can, in particular, take note of payment incidents or even of your filing if this is the case.
All these steps make it possible to verify the solidity of your file. A car loan will be authorized once these precautions have been taken. This is why we are at an advantage since we offer in-house financing and take on this risk ourselves. Schedule an appointment with us today to see how we can help you!