The car buying process can often seem tedious, but you can help reduce some of that stress by being completely prepared when visiting the dealership. This is especially important for people with lower credit, as subprime lenders require more paperwork than traditional lenders. Plan on bringing all the proper documentation the first time around, so you don’t have to make extra trips.
Visiting the Dealer
When you visit a dealership to finance a car with bad credit, you'll fill out a loan application, which the finance manager will submit to their lenders for approval. Once a lender has approved your application, the finance manager will pass on the necessary documents you’ve provided.
All dealers require certain basic documentation, such as a valid driver’s license and proof of insurance. But a subprime lender requires more documentation, including:
- Proof of income – Provide your most recent computer-printed check stub, showing taxable year-to-date income. For people with direct deposit, a copy of your check stubs should be available through your employer.
- Proof of residence – A recent utility bill, such as water or electric, in your name will prove your residency.
- Personal references – These lenders usually require six to eight references, complete with names, addresses, and phone numbers. These can be co-workers, friends or family members – as long as they don’t live at the address listed on the credit application.
- Proof of a working telephone – This must be the number you provided on your application. It must be working and in your name. If it’s a cell phone, the plan must be from a national carrier. Prepaid phones won’t cut it.
The process will go more smoothly if you have all the required paperwork on your initial visit.
Prepare for Special Circumstances
There are many situations that could arise which would require additional paperwork. Being prepared for any situation is important to having the best car buying experience possible. Make sure none of these situations catch you off guard:
- Trading in a vehicle – If you plan on trading in your current car to cover all or part of your down payment, make sure to bring the title. If your vehicle isn’t paid off, bring your current lien holder information.
- Recent bankruptcy – You won’t be able to move forward without bringing along your discharge paperwork.
- Open bankruptcy – If you're currently in a Chapter 13 bankruptcy, you should've already submitted a sample buyer's order from your dealer to the court for approval. Coming back to the dealership, you'll need to provide your Order to Incur Additional Debt to continue the buying process.
Finding the Right Dealership
Being prepared is important when you're in the process of buying a car, and so is working with the right dealership. Not all dealerships have lenders that are capable of working with unique credit situations. When you’re facing bad credit, the goal is to find a special finance dealer that can help.
At Auto Credit Express, we can help you meet that goal. We work with an extensive network of special finance dealers who can work with people who have bad credit, no credit, or even bankruptcy. Get started today by filling out our no-obligation, free online auto loan request form now!