When you apply for a car loan, lenders will ask for a range of documents to help them assess your repayment capacity.
Different lenders will ask for different things, some of the paperwork they’re likely to request includes:
Proof of identity
No lender will approve a loan unless you can prove you are who you say you are. You’ll probably be asked to provide 100 points of identification.
A passport and a driver’s licence will typically get you over the line, as will a passport, Medicare card and utility bill.
Proof of residence
As part of establishing your identity, lenders will want to confirm your address.
This could be done with a utility bill, council notice, tenancy agreement or mortgage statement.
Proof of income
Once lenders have confirmed your identity, they’ll want to make sure you’re earning enough income to repay the loan.
You might be asked for any combination of payslips, bank statements, a group certificate, and a tax return.
Proof of savings
Repaying a loan isn’t just about how much money you earn – it’s also about how much of that money you spend.
Lenders like to make sure potential customers are capable of saving, so don’t be surprised if they ask for bank statements and investment documents.
Proof of liabilities
Lenders will also want to know about your debts, so they can get a complete understanding of your financial position.
That means you’ll probably be asked to provide copies of credit card statements, loan agreements and the like.
If you plan on applying for a secured car loan, the lender will want to be confident that the value of the car being purchased will be enough to secure the loan in case you default on your repayments.
You may need to provide details or the car you're buying, including its make, model, age, kilometres travelled, and overall condition. These details may be found in the contract of sale and car registration.
Proof of insurance
Some lenders won’t give you a car loan if you don’t have comprehensive insurance, because you might struggle to repay the loan if you were suddenly hit with a damage claim.
As a result, you might be asked to provide insurance documents as part of your car loan application.