How to Qualify for an Auto Loan

• Proof of Income: In order to secure financing for a new or used vehicle, you’ll need to be able to prove your income so the lender has confidence that you’ll be able to keep up with payments. For most lenders, pay stubs or bank statements will suffice, but in some cases a lender may wish to contact your employer.
• Proof of Insurance: Auto insurance is not only required by law, but it’s also required to get a car loan. While you can often purchase insurance at the dealership, it’s also something you can take care of ahead of time.
• Identification: To secure a loan, identification is required. You should note a photo ID is often not enough — you’ll likely also need corroborating documents such as a current utility bill in your name or current bank statements with an address that matches the one on your ID.
• Proof of Residence: This gives lenders confidence they can contact you if needed. The majority of the time, a current utility bill will serve as adequate proof of your address.

In addition, if you are planning to trade in your current vehicle, you will need that car’s title and registration so you can prove ownership of the vehicle.