5 Things You'll Need to Qualify for an Auto Loan
Unless you're ready to pay for a car with cash, getting an auto loan is a must. But just what do you need to qualify for one? Let's take a look.
- Proof of identity. To ensure that you are who you say you are, your lender will likely require you to submit a photo ID (with your signature on it), like a driver's license or passport, and may also require you to provide them with an original of your current utility bill or bank statement.
- Proof of income. Before you can qualify for an auto loan, lenders want to know that you have an income that allows you to reliably cover your debts. In order to prove this, you may need to provide your lender with pay stubs or bank statements – and they may contact your employer to verify that you have a job.
- Proof of insurance. Before getting an auto loan, your lender will need proof that you have an insurance policy for your vehicle. If you already have full-coverage auto insurance, the lender may simply need to verify this information before granting your loan. If you don't have full-coverage auto insurance, you may need to call your agent/agency from the dealership and arrange for insurance while you're at the dealership.
- Proof of residence. In order to qualify for an auto loan, your lender will need to know how to bill you – so they can be repaid. In order to do this, they'll need to verify your residence. Your driver's license and utility bill or bank statement (also used as proof of identity) can generally cover this requirement.
- Trade-in vehicle paperwork. If you're trading in your car for a new or used vehicle, before getting an auto loan you'll need to prove that your trade-in belongs to you. In order to do this, you'll need the title and registration, as well as any information on your lienholder (if applicable).