Most auto loan providers require proof of a borrower's income, address and employment to ultimately approve a car loan. Even if you plan to finance at a dealership, expect to provide the same information, as the dealer is required to follow any lender requirements. Having your information and documents ready can speed up the application and approval process.
License and Insurance
Expect to provide your driver's license or other valid proof of identity to your lender, such as a passport or military identification. Collision coverage is also necessary to complete your auto loan, so find a provider before you apply. It can take time to shop for a competitive price or you may find that you need a down payment to initiate your policy if you aren't currently insured. Once your auto loan obtains its final approval, you'll provide your lender with proof of insurance coverage that lists your lien holder as the policy's loss-payee.
Income and Employment Information
To complete your credit application, you'll have to provide your gross annual income and employer's information. Bring your most recent pay stub with you so your lender can determine your actual year-to-date income. Talk to your auto loan provider if you've recently changed jobs or received a raise in pay as most lenders only use your year-to-date income; some lenders don't recognize future income changes when a raise applies. Obtain your employer's name, address and contact information so the lender can verify employment.
Proof of Address or Identity
You may have to provide your Social Security card or birth certificate to your lender to finalize your loan. This usually occurs when a discrepancy is reported to the credit bureaus, such as the misspelling of your name or an alternative Social Security number is reported. If your address is relatively new or is shown incorrectly on your credit report, you may also have to prove your address. Bring your social security card with you and a recent utility bill, just in case. Provide a recent utility bill from your electric, water, cable or phone company, which should document your name and current address.
Other Information
If you're pursuing a loan outside of a dealership, bring your vehicle information with you. Expect to provide the vehicle's identification number (VIN), year, make, model, exact mileage and the car's features, which affect loan approval amount. Note features such as a sunroof, advanced audio system, navigation, DVD player, leather, alloy wheels or other vehicle accessories that add value. Many auto loan providers also require the name and addresses of three to five references, so obtain reference information before you apply for your loan. Otherwise, you may find that friends or relatives aren't available to offer the information when you need it, which can increase your loan approval time.
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