What you Need for Car Finance

Setting up a car finance agreement requires a strict collection of processes to ensure the contract is setup properly, and is watertight.

With this in mind, when purchasing a car on finance, it's important to know there are specific documents and pieces of paperwork required.

What documents do I need for car finance?

When you apply for financing to buy a car, you'll need to give the finance company a variety of information, documents, and evidence so they can evaluate your application.

In terms of documentation and paperwork, here is the minimum of what is required:

Proof of identity

Your full name (as well as your previous name, if it has changed), date of birth, marital status, residential status, and a history of all of your addresses for the preceding three years or more should be provided.

Proof of address

To ensure you live where you claim to, the majority of lenders will want up to two proofs of address. These are typically utility bills such as gas, electricity or council tax dated within the last three months, and you must be listed as the recipient. Bank statements may also be considered. There are specialist Military finance available for those who move around a lot.

Driving Licence

At this point of the application process, you will not require a full driving licence, and a provisional will do the trick.

However, when it comes to the full credit check, you may find it harder to get accepted without a full licence - additionally, you will need a full licence if you plan to drive the car on your own.

Employment history

You will be required to provide your employment location, title, and monthly salary. This should contain the complete address of each employer over a minimum of the past three years. You will need to present accounts or other documentation as proof of income if you are self-employed.

If you're unemployed, you could still be able to apply for car finance, but your chances of getting approved might be lower. You'll also still need to provide evidence of your yearly income.

Proof of income

The majority of lenders will want to see three months' worth of payslips or bank statements as proof of your income. This will demonstrate to them your ability to make your monthly payments.

You will need to provide additional documentation, such as tax return information, to support your income claims if the majority of your income is cash and does not appear on your bank statements.

Bank details

The bank account information for the account you plan to use for monthly payments must be submitted. Together with your account number, you'll need the sort code and address of the branch.

Without the above in place or avialable to you, your application will stall until you can gather the minimum level of paperwork and documentation.