What paperwork will I need to apply for car finance?

If you’re thinking of getting your next vehicle on finance, here’s what paperwork you’ll need.

Applying for anything related to finance, like loans or credit cards, can feel daunting. In this blog, we'll let you know what you’ll need to provide and why.

What do you need to finance a car?

What you’ll need to send to us might vary slightly between lenders, we’ll let you know what we require when we get to that stage of the application process.

So, what do you need to finance a car? Have a read to find out, so you can gather information before you start the application process - it’ll be so much quicker if you do.

1. Identification

The first document you’ll need is photographic proof of identity. This can be in the form of a driving license (provisional or full) or passport. If you’re not in possession of your license, don’t worry; we can request a DVLA mandate to confirm your license status. However, in this instance, we will require a copy of your passport.

We may also need a picture of you posing with your identification document. This is a basic anti-fraud measure, to make sure that you are the person shown in the photo. It should look like this.

2. Proof of address

When completing your car finance application, you may be asked for proof of residency (especially if you’re not registered on the electoral roll). To prove your address, you’ll need to show us a gas, electric, water, or council tax bill from within the last 60 days.

3. Proof of earnings

In recent times, lenders have become more efficient in verifying a customer’s earnings. However, they may still require evidence, as well as proof of any additional income.

For instance, it’s helpful for your lender to know if you receive benefits (i.e. Universal Credit or Tax Credits) or pension payments. If you’re currently out of work, we also work with lenders who offer car finance for unemployed drivers.

Employed

If you are employed and applying for finance, you may need to provide your payslips for the last two months. You’ll need to take a photo of the document on a flat surface, so we can see and read all the details on it.

Self-employed

If you’re self-employed and applying for car finance, you may need to provide evidence of your earnings via either:

1. Open banking

Open banking is a secure way for our lenders to verify your income and expenditure. All you have to do is open your online banking portal, select the account your pay goes into, and give permission to share with the lender. They can then efficiently calculate your affordability.

2. Bank statement

In cases where open banking isn’t possible, our lenders may ask you to provide your bank statements for the previous 60-90 days. Your statements will need to show your name, account number, sort code, and all transactions.

Why do you need to see proof of income when I’m applying for car finance?

We need to see how you manage your money to make sure you can afford the finance you’re asking for. This is called an affordability check, and is put in place to protect you from getting into financial difficulty.

And that’s about it. If you have these documents to hand, you’ve pretty much covered all the bases for a car loan application. In the meantime, explore our available car finance options, or check out our helpful collection of guides for even more insight into the application process.