Documents I Need To Take Out Used Car Finance
Making a finance application is a simple and easy to navigate process, however if this is your first time completing an application, there are some things to consider, especially the specific documents you will need.
Having the documents you need ready when you apply will make the whole application process smoother and speedier, meaning you can expect to receive a decision quicker. To help you, we have put together a checklist of documents you will need for your car finance application.
1) Proof of identity
First of all, you’ll need to provide either a photo of a valid driver’s licence or passport, depending on the lender, to prove your identity. A driving licence is the most common document that finance lenders will accept as proof. If you need to apply for, upgrade or replace a licence, you can find all the information on how to do this on the gov.uk website.
2) Proof of income
The next piece of information a finance lender will require from you is your proof of income. Generally, you’ll need to provide a minimum of 3 month’s worth of payslips or bank statements, to show you have a regular income and that you can afford to make monthly repayments on your car.
If you’re receiving benefits,this is counted towards your income, as long as you can prove that half of your earnings are from some form of employment.
3) Previous addresses
Finance lenders will want proof of your current address and potentially proof of your past addresses too. Usually you have to provide your address history from over the past 3 years. This is all to see if your address history is erratic, so you move from place to place, as this can be a cause for concern for some lenders.
Other things to consider:
When you apply for car finance,one of the first things lenders want to find out about is your credit history. This is to get an idea of your financial history, if you paid debts on time and if you’re currently in a good and healthy financial position.
This is all to determine whether you’re a reliable candidate to lend the money too and that you’ll be responsible with paying it back on time.
Typically, the better your credit score/ credit rating is, the more likely you are to be approved by a lender for car finance.
If there are problems with your documents
After your documents are sent through to the finance company, they’ll review them. If there’s any problems with your documentation, such as they can’t verify certain information you’ll either find:
- The finance company will request extra information from the dealership and you
- Your application is rejected outright. This usually only occurs when your information doesn’t match up. Bear in mind that a rejection is pretty final so make sure the information you provide is accurate.