Car finance is an excellent way to spread the cost of your new vehicle into manageable monthly payments. But to many unfamiliar with car finance or financing a purchase in general, you may be confused as to what you need to complete the deal.

The good news is that car finance is not as complicated as you might think. And, if you use an FCA approved provider like Creditplus, you will be talked through the journey step-by-step so you can focus on the most important thing – choosing your new car!

To help get you prepared for your car finance journey, there is some paperwork that you will have to provide during your application. Here’s what you need to include.

Proof of identity

The first thing you will need to do is to be able to prove your identity. Car finance providers are obviously concerned about giving out large sums of money to people, so will want to make sure you are who you say you are!

You can use your driving licence or your passport to prove your identity. A driving licence is preferred as it also shows you are eligible to drive the vehicle you are financing, making it less likely you would be financing for someone else. A provisional licence is not always accepted, so you may want to ask your provider whether they will accept or not.

Proof of address

You will also need to be able to provide your address details for at least the last three years. This is so the provider can check your traceability, and ensure that you haven’t had any black marks on your credit file that may not be linked to your current address.

If you are on the electoral register, then you should have your address history with that. If not, find the tenancy agreements or mortgage details from your previous addresses. If you have travelled to the UK from overseas, you will still be asked to provide your address information. It may be worth your time having these documents professionally translated and stamped.

Proof of income

Finally, you will have to be able to prove your income. If you are employed by a company, then you can use 3 months of payslips as evidence. You may also use bank statements, providing it's the account directly paid by your employer. If you cannot provide these documents, the finance company may call your employer to confirm you work there and for how long. However, they won’t provide any information about your application, so you will retain your privacy.

If you are self-employed, you can use bank statements. However you will need to ensure they clearly state how much money you have earned over at least the last 3 months. If you cannot prove the income over that time, you can submit bank statements for longer, especially relevant if your employment is seasonal.

And if you are on benefits, then you can use evidence of this to support your claims of income.

What about my credit file?

Your credit file is not a material document, rather than a history stored at the credit check agencies. So you won’t have to collect together all your documents. If there are any discrepancies, your finance provider will help talk you through them.

Ready to apply?

If you're ready to apply, and now know what paperwork is needed, then complete our short, 2-minute application and we'll be in touch to discuss your options.

Or if you want to find your perfect car first, use our car search to browse thousands of quality cars.

 

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