Your personal preferences and financial circumstances will determine which of the available car finance options suits you best. After which, it’s simply a case of using an online car finance calculator to establish your budget, before contacting a reputable broker.
In all instances, however, it will be necessary to provide certain documents and details to get the process up and running. To ensure a smooth and simple application from start to finish, it pays to have the documentation and information you need prepared ahead of time.
So with this in mind, here’s a brief overview of what you will need to submit, in order for your car finance application to be processed:
First of all, you will need to provide various personal details regarding your age, location, employment status and so on. This will include your full postal address, whether you own your own home or rent, your employment status, how long you have been with your current employer and perhaps your income (depending on the lender). This information may then be used to carry out a credit check, though this is not always the case. If concerned about your credit history, consult with your lender directly before submitting your application.
Proof of Identity
Perhaps the most important document of all is formal proof of your identity. With the vast majority of lenders, this involves providing a scanned copy of both sides of your driving licence. There are some lenders that are happy to accept a passport, but it is usually mandatory to prove that you have a valid driving licence to qualify for car finance. If you intend to take a loan out for someone else and you personally do not have a driving licence, speak to your lender or broker for more information.
Proof of Address
Providing proof of your postal address typically means sending a copy of at least two recent utility bills, dated within the past three months. It is important that the name of the applicant appears on each of these utility bills, along with their full address as designated in their application accordingly. If someone else’s name (such as your partner) appears on your utility bills, you can request a bank statement by post to confirm your address.
Proof of Income
Last but not least, if your lender requires proof of income, this will usually mean providing either a copy of your bank statement or several recent payslips. They will typically want to see how much you have been paid over the past three months, so you will not be able to use any documents older than this. If you are self-employed, tax records may be accepted, though this varies significantly from one lender to the next.
If in any doubt, consult directly with your chosen lender to find out what forms of documentation they accept from applicants.