June 9, 2023
refinance auto loan with bad credit

Buying a new car can be an exciting experience. To avoid any complications or confusion when getting your dream car, though, you need to ensure that you have everything you need to make the exchange successful and fast. Here are the documents you should carry with you to the car dealership.

Your proof of identity

The car dealership, bank, or credit card union will need a way to prove that you are who you say you are. Therefore, before heading out to buy a car, ensure that you have valid proof of identity. The acceptable ones include your passport, a state ID, a valid driver’s license, and other government-issued identifications.

Documents that prove where you live

You may also need to provide a document showing or proving that you live where you say you do. Different car dealerships require different forms of proof of residency, so it may help to ask beforehand which documents you need to carry with you. Some of the acceptable ones include your insurance statement or policy, property tax bill, utility bills, credit card bills, rental agreement or your current mortgage document.

Proof of car insurance coverage

The law requires that the car dealership confirm you have insurance before selling you a car. Similarly, if a lender is financing your vehicle, the dealership will also require that you provide insurance documents. Since insurance premiums differ for every car, consult first with your insurance company to get the appropriate quote for the car you’re considering.

After buying the car, send the details of the car to your insurance company so that it can issue you a policy. Those details include the Vehicle Identification Number, the car trim, model, make, and mileage.

Proof of income

Your source of income is something that you may have to provide to your car dealership or lender, particularly your lender. Your lender wants to ascertain that you can actually pay back the money you owe. Some even go to the extent of contacting your employer to verify that you get a steady income stream.

That said, carry documents that prove that you’re bringing in the money when going to the car dealership. Some of the papers that can suffice include your recent bank statements or pay stubs.

To conclude, remember to shop around different car dealerships to find a dealership with the best deals on cars. And to be financially safe, always stay within your budget by avoiding impulsive buying.