Applying for A Car Loan? Keep These Documents Handy

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The right way to get car financing is to prepare. There are several simple but important documents needed before you can qualify for the best deal. Every lender wants to know that they’re lending to someone trustworthy. A step towards establishing that trust is by ensuring that you carry in all the necessary paperwork when you ask for a loan. Here’s a list of the documents that you will need.

Income Proof

Lenders need to know that the person they’re lending to is actively earning a regular income. Self-employed individuals can show tax returns and bank statements as proof. About two to five years of tax history and bank statements from the past three months should suffice.

Residence Proof

The lender needs to verify the address on the car loan application. To do this, you can bring a utility bill or any other business correspondence that arrives in your name at your address. Also, carry a valid driver’s license.

Insurance Proof

The lender needs to see proof that you have adequate insurance before they can sanction the loan. If you’ve already purchased insurance, carry the paperwork to the meeting. If you haven’t, understand the details of the coverage you need to buy.


You need a photo ID with your signature on it, a current utility bill in your name that has the same address as the ID, and bank statements from the last two months. You could carry a passport, a government-issued card like a Medicare ID, stock certificates, home titles, or titles to other vehicles too.

Financial History

Lenders will want to study your current and past finances. This includes your current debt-to-income ratio or the percentage of your monthly gross income that goes towards paying debts, including credit history and credit score. They’ll need your basic information and consent to access this data.

Vehicle Information

For used car loans, get details like VIN, make, model, original title, and any liens on it.

Trade-In Documentation

Carry the title and registration papers of the car you’ll be trading in. Also, carry other documents that can help determine the worth of the trade-in car. Its value will impact the financing you receive.

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