When it comes to financing a used car, there are several documents that you’ll need to provide in order for your loan to be approved. No matter whether you’re after a secured loan, an unsecured loan, or a commercial loan, you’ll need to go through a similar process.
Today we’re breaking down the main documents you’ll need to finance a used car, but keep in mind that depending on your chosen lender and personal circumstances, you may be required to submit additional documents.
Tips before you apply for finance
If you’re considering applying for car finance, there are a few things you should do first.
- Check your credit score. Typically the higher your credit score, the lower interest rates you’ll be eligible for. It’s a good idea to check out what your score is before applying for finance so that you can get an understanding of your credit history and amend any issues in your credit file.
- Use a loan calculator. By using a car loan calculator you can get a good indication of what your monthly repayments might look like, so you can ensure that you’re able to afford the loan.
- Assess all of your options. Rather than rushing into a loan with the first lender you see, make sure you take the time to assess all of your finance options. Driva can help you do this by giving you personalised rates from its panel of more than 30 lenders.
- Consider consolidating existing debts. If you have existing debt obligations, it could be a good idea to consolidate them before applying for another loan, as this can simplify your financial situation and give you greater control.
What documents do I need?
To access your Driva Dashboard and get personalised rate estimates, you don’t need to provide any documentation at all. Getting personalised rates also has no impact on your credit score.
Once you’ve decided on your ideal lender, there are a few simple documents you’ll need to upload:
ID (Drivers license)
The first key document you’ll need to supply is a valid drivers license, which will allow lenders to verify your identity.
2 recent payslips
You’ll also need to provide two recent payslips, to show your lender that you have a consistent income and will be able to meet your loan repayments.
Recent bank statement
Most lenders will require your last 3 months of bank statements, and you can easily retrieve these digitally in the Driva platform.
What other information do I need to supply?
To get your personalised quotes with Driva, and apply for a loan, you’ll also need to supply a few details about you and the car you’re looking at buying.
These questions will include asking about your residency status, current living situation, income and employment status. You’ll also need to provide information on where you’re buying your car from (ie: dealership or private sale) and answer a few questions about the car itself.
If you’re buying a vehicle to use for commercial purposes, you’ll have to inform whether or not your business is ABN registered and GST registered, as well as how long your business has been operational.
Driva requires this information to generate instant and personalised rates from across our panel of more than 30 lenders. By giving you personalised rates upfront, you’re able to make the most informed financial decision, unlike if you were comparing the generic starting interest rates that many lenders provide.
Post Approval Documents
Once your loan has been approved, we only require a couple of quick and easily attainable post-approval documents:
Vehicle Sales Invoice
The first of these is a vehicle sales invoice from the dealership or private seller where you purchased the vehicle.
Proof of Comprehensive Insurance
You’ll also need to obtain comprehensive vehicle insurance for your loan to settle with any of the lenders on our panel.
Apply online easily with Driva
Driva takes the hard work out of applying for a loan from start to finish and makes the entire finance process a seamless and personalised experience. Uploading your documents through the Cars24 x Driva flow is straightforward and efficient, and the fully online system will let you know exactly which documents are required for your specific lender and personal circumstances.