What to Bring When Buying a Car

The process of buying a car contains several critical steps. Before you take the final leap and step into the financing office, take a minute to consider how far you’ve come and what you’ve accomplished. Review the following new car purchase checklist to make sure you’ve got all your bases covered: 

• Determine your budget: Figure out how much you can afford, accounting for costs like sales tax, documentation fees, and dealership fees. 
• Check your credit score: You can request a free annual copy of your credit report without damaging your credit. Review your credit history and correct any errors before proceeding with a loan. A higher credit score will help you obtain a lower interest rate. 
• Find the best time to buy: Many people wait until it’s necessary to have a new car before they start looking. However, working a few months in advance to understand where you’re at can help you time your buy to your advantage. 
• Arrange financing: Shopping around for car loan rates is just as critical as finding the best price for the car you want. If you’re unsure what a preapproved car loan means or looks like, do some research before you contact anyone about cars you’re interested in. Preapprovals can often help you determine if buying a car is feasible. 
• Locate the right car: Find a vehicle that fits your budget, has low car insurance rates, meets your minimum qualifications, and sells for close to the fair market price. If you can find a vehicle that qualifies you for discounts or rebates, all the better. 
• Negotiate your best deal: Haggling a price down before offering your current vehicle as a trade-in can help you gain the upper hand in negotiations. Ask if you’re unsure what something refers to or why it’s included in your potential finance agreement. 
• Agree upon and finalize terms: Put down in writing the terms you’ve agreed to and finalize your car insurance policy. Give each component of the agreement another glance. If you have any final questions, now’s the time to bring them up. 

The next step in the process is rounding up the required paperwork and signing on the dotted line. Keep reading to learn precisely what documents you need when buying a car.  

It’s common to overlook what documents you need when buying a car, primarily because most people are concerned with how car loans work. Whether you purchase a car outright or finance the deal, you must bring various documents to complete the sale. Failure to bring these documents delays the delivery of your chosen vehicle.  

Dealerships typically require these documents for out-of-state buyers, though you may need additional information. If you purchase a car through a private sale, bringing the same information as you would to a dealer is a good idea. However, you should be careful in sharing personal information without taking the proper precautions. 

Driver’s license

Dealerships typically require a driver’s license as proof of identification. They may enter the information on it by making a copy for their records. Out-of-state buyers will definitely need their driver’s license as proof of identification. 

Proof of car insurance

You must have car insurance on your vehicle before you drive off the lot. Most insurance companies provide quotes on coverage beforehand if you have the Vehicle Identification Number (VIN) of the car you want to buy. You can then activate the policy once you’ve taken ownership of the car. 

Proof of residency

Similar to your driver’s license, proof of residency helps a dealership verify your location. Personal mail you receive with your name and address will suffice, but check with the dealership beforehand if you’re unsure what they’ll accept.  

Down payment check

If you negotiated a down payment to reduce the financed amount on your new car, you must bring a check for the agreed-upon amount. Ask the dealership who to make the check out to before you fill in this information. If you didn’t negotiate a down payment, you may have to pay sales tax, documentation fees, or dealership fees before you can leave. Most dealerships accept personal checks or credit cards as payment methods. 

Proof of discount or rebate paperwork

Some dealerships offer discounts or rebates based on various eligibility requirements. If you qualify for a discount or rebate, submit the paperwork demonstrating your eligibility. For example, proof of military status will suffice if the dealership offers military discounts. 

Financing documentation 

The documentation you need for financing depends on where you obtain financing from. If you go with an outside source (other than the dealership), you’ll need a check for the agreed-upon sales price. You may also need to provide pre-approval documentation. 

If you finance with the dealership, you must provide proof of income, typically your two most recent pay stubs. The dealership will also verify your employment information and credit score, so you must provide contact information for your employer and your Social Security number, in addition to permission to access your credit report. 

If you’re unsure what credit score is needed to buy a car, most dealerships require a score above 600. While you can skirt credit score requirements by paying cash, most consumers don’t have thousands of dollars to pay for a car. Even if they do, sometimes financing can be in your best interest. 

However, you can often still qualify for a car loan if you search for a no credit check, no proof of income car dealership. As alternatives to buy here pay here dealerships, these dealerships don’t conduct a credit check or require traditional processes in qualifying for a loan. Instead, they offer flexibility in proving your ability to repay a financed loan. 

Regardless of what type of dealership you approach when you have a low credit score, bringing a list of personal references can help your case. These references can speak on your behalf and demonstrate to dealerships that you’re trustworthy. Many people choose supervisors, coworkers, or family members to vouch for them as references for a car loan. 

When trading in your car, you must bring: 

• Vehicle registration 
• Vehicle title or loan account information

Dealerships will also ask for any extra keys you have. If you do not have the vehicle’s title but have paid the loan balance off in full, you can request a copy of the title from your local Department of Motor Vehicles (DMV). If you still owe money on the car, you must obtain the following from your lender: 

• Lender name and contact information
• Account number
• Remaining balance (typically a 10-day payoff quote)

Lenders often provide a 10-day payoff quote that includes interest to be paid on the remaining balance within that time frame. Dealerships often require this quote before finalizing any details. 

It takes time to buy a car, especially if you’re looking for the best deals. In addition, the paperwork and negotiations can drain you mentally from looking at countless terms and conditions, interest rates, and additional vehicle service contract offerings like extended warranties and tire and wheel protection. You’ve got to be on your game the entire time to ensure you walk away with a good deal. 

A FINN car subscription makes driving a car simple and convenient. FINN does away with negotiating terms to offer you various makes and models, trim levels, mileage limits, and subscription terms. You can customize your subscription to fit your lifestyle and even have your new subscription delivered straight to you. When your subscription ends, the process begins anew, allowing you to drive various cars as the ultimate long-term test drive.