When you apply for car finance, the lender will ask you to supply documentation to verify who you are, where you live, and how much you earn. Paperwork needed can include bank statements, payslips, utility bills, and a copy of your passport or driving licence. They use this information to protect you from potential identity theft and confirm that the loan they’re offering is right for you.
Why do I need to provide paperwork for car finance?
Once you’ve been provisionally approved for a car finance loan, lenders will usually ask you to supply some documents to prove you are who you say you are and that you can comfortably afford your monthly repayment.
While different lenders can request different paperwork, you’ll need to supply the documentation requested usually by taking photographs or scanning copies and emailing or sending them by WhatsApp to your personal account manager.
In some cases, the lender may request additional documents later. In that case, your account manager can explain exactly what they need and how best to supply them.
What information will I need to apply for a car loan?
Most lenders will require the following information, so you can get ahead of the game by preparing your documentation before applying for a loan:
Personal information
When completing our online application form, you’ll need to share a few personal details. This includes your full name, date of birth, address, and income. This information will be used to run a soft credit check (which won’t impact your credit score) and potentially offer you an approval in principle.
Proof of identity
Proof of identity will usually be a copy of your driving licence or passport, but occasionally, you might be asked to send a selfie too. If the lender isn’t sure that you are who you say you are, for your protection, they might ask you to send a photograph of you holding your driving licence so they can be certain no-one is trying to impersonate you.
Driving licence
Most lenders require you to have a full UK driving licence to qualify for car finance and it can also serve as proof of identity. Just make sure it’s in date and has your current address on it.
Proof of address
Proof of address can include anything from a gas, water, or electricity bill from the last 60 days to your Council Tax statement. If you rent, you may be able to supply your Tenancy Agreement.
Proof of income
Lenders need to run affordability checks to prove you’ll be able to afford your monthly loan repayments. To prove your income, you could supply three months’ payslips. If you’re self-employed, you could submit bank statements or a copy of your company accounts.
Bank details
Once you’ve accepted your finance offer and are preparing to sign your agreement, you will need to provide your bank details. This will be the account that your monthly payments will be taken from.