If someone asked you, “what do I need to get a car loan?,” would you be able to answer the question? Buying a new vehicle can be exciting, that is until it’s time to finance the purchase. Whether you are car shopping now or plan to in the future, there are 7 things you should have so that you’re ready to get approved.
Know how much you can spend before you start looking for a car. This can save you a lot of hassle (and heartbreak) later. Write down your income and all bills and debts then determine how much you can comfortably spend on a vehicle. This will help you narrow down your options and make it much easier when you go to the dealership or look for a private seller.
You must have a source of income. You will be required to provide proof of income as well. The lender wants to know that you are capable of paying back the loan. Proof of income could be payslips, bank statements, and other financial documents.
The lender wants to know that you have insurance to cover the vehicle before they will finalise the transaction. Insurance can be purchased through the dealership or you can do it yourself ahead of time.
Proof of identity is required. This is any document that verifies you are who you say you are. If you are borrowing from a bank you already use, then this item may be skipped since they most likely already received identification from you before. Otherwise, you will need a photo ID with your signature.
Proof of Residence
Lenders also want to verify your home address. The most commonly used proof of residence are utility bills. This confirms the details the lender needs to contact you in case you stop paying the loan.
If you plan to trade in a vehicle to help cover the cost of a new one, you will be asked for trade-in documents. This item should include the title and registration papers as well as anything else that you have that proves you own the car you are trading in.
When you ask “what do I need to get a car loan?,” this is probably the most obvious thing on the list. Choosing a lender can be difficult, especially if you have less-than-perfect credit. Zoom Car Loans is available to help. Call us at 1300 138 273 to talk to a financing expert or visit our application page to complete a free online assessment.