What to Bring to the Dealership when Buying a Car
Buying a car is an equally daunting and exciting experience. It involves a lot of steps as well as paperwork. You need to keep certain items and documents in order while opting for a car. No matter what your credit situation is, there are certain regulations to be followed while buying a car. If you have good credit, you might have an upper hand when it comes to buying a car. In case you have bad credit, you need to bring some additional documents and papers to get approved for a car loan.
Things to Keep in Mind Before Going to the Dealership
Before going to the dealership, check your credit card details. Check your credit reports and scores. You can also try to get a pre-approved loan from your local bank. Some people also like to trade in their old car to reduce the price of the new one. In that case, make sure to contact the lender to get a payoff quote. A payoff quote shows the due balance of the loan with an additional 10 days of accrued interest. It might also include any additional charge you owe to the lender. After having the payoff amount, lenders allow around 10 days or so to receive the payment.
What Papers Should You Bring to the Dealership?
Some of the following documents are mandatory when you are going to a car dealership. While a few extra documents might be required if you have bad credit, with good credit, you would be able to usually get by these three documents:
- Driver’s License – A valid driver’s license is essential when you are going to the dealership. The address should match with the one provided on your application for loans and invoices.
- Proof of Insurance – Having insurance for your vehicle is essential. When you are going to the dealership, make sure that your insurance company knows about your new vehicle. Apart from that, if you do not have full coverage of your current vehicle, it is important to bring the documents and proof to show that you have full coverage of your new car.
- Trade-in Information – If you are planning to trade in your old car in exchange for a new one, make sure that you have all the required documents sorted in order. The title and registration of your old vehicle should also be proven if you are planning to use the same plates on your new car.
Although the aforementioned documents would suffice if you had a good credit score, you might require some extra paperwork to make up for your bad credit score. In that case, you might need 4 additional documents:
- Proof of Income – You should provide a copy of your paystub with year-to-date earnings. If you are a freelancer or self-employed, you should present your bank statements as well as copies of your recent tax returns.
- Residency Proof – A recent utility bill can act as proof of your residency.
- References – You should also provide around 4 to 6 references, complete with their names, addresses, and contact information. None of these references should be a resident at your address.
Connect with us
Recent Blog Entries
Categories
