What To Bring To Dealership When Buying A Car​?

What Documents Should You Bring to the Dealership?

With any car loan from any lender, you'll be required to furnish documents such as proof of insurance and a valid driver's license. When getting a bad credit auto loan, you'll be required to bring a few additional documents.

If you are wondering why, it is because a lender is taking on a higher risk when funding a subprime auto loan. By requiring extra documentation, the lender is just taking extra care to make sure that the loan is going to be successful for all parties involved.

In the car business, the necessary documents are known as stipulations, or "stips" for short. Here is a list of the documentation that subprime lenders require that you bring with you when you first go to meet the finance manager at the dealership:

• Your valid driver's license – Not expired, revoked or suspended, and lists your current address, and issued by the state you live in.
• Proof of insurance – Make sure to include your agent's name and phone number, but don't add a new car to your auto insurance policy until you have been approved.
• Proof of residency – All you need here is a recent utility bill (water, electric, etc.) with your name on it to verify that you live at the address you provide.
• Proof of employment – You'll need to show a computerized pay stub with your year-to-date earnings on it. It also has to be from within the past 30 days. If you are self-employed, then you need to be prepared to bring up to two years of professionally prepared tax returns.
• A list of personal references – Typically, the finance manager at the dealer wants a list of five to eight references. This can be anybody who knows you on a personal level like a friend, a relative, or a coworker. Provide the name, address, and phone number of each person. However, none of the references can be listed under the same address. Make sure that you get their permission first because they may be contacted by the lender.
• Phone number verification – The phone number that you provide on the application has to be working and in your name. While you can provide your cell phone number, you can't do so if it is a prepaid one.

There are also a few circumstances that require you to bring further documentation.

• If you plan on trading in a vehicle, make sure to bring the title with you.
• If you have completed a bankruptcy, make sure to have the discharge papers with you.
• If you're in an open Chapter 13 bankruptcy, make sure to bring the appropriate paperwork after you have received an Authorization to Incur Additional Debt from the court.

What to Bring if You’re Trading in Your Car?

If you're trading in a vehicle, you need to be sure and bring in the proper documents for that car. This includes the vehicle title, current registration, and any service records you have. If you still have a loan on your current car, bring in the account number for the loan.

You should also take care to make sure that your trade-in is in good condition, and has been detailed in preparation for sale. Remove all personal items and make sure the vehicle is ready to stay at the dealership.

The Benefits of Being Prepared When Buying a Car

If you have all of these documents with you when you first meet with the finance manager at the dealership, the loan process can go smoothly. They'll have all of the information their lending partners usually require and they can transmit it over right away. In turn, that allows the loan decision to be made as soon as possible.

Not only will it eliminate the need for you to return to the dealer multiple times, being prepared also puts you in a favorable light. You'll be seen as responsible and extra committed to the purchase, which can only help your case.

Learn More About Purchasing a New Car

Just as having all of the documents ready allows the loan process to be as efficient as possible, applying with Auto Credit Express can make finding a dealership just as easy. If you have less than perfect credit, we can match you with one in your area that is ready and able to get you back on the road in no time.