Applying for a car loan is so much easier these days, with most of the work done online. While quick and relatively hassle-free, there are still a few steps involved before you can take your new car home.
At loans.com.au, we require documents that prove you are who say you are and that you’ll be able to comfortably repay the loan.
For a smooth and comfortable car loan application, you will need to provide us with a range of documents that prove you’re a reliable borrower. These documents can be summarised as:
Personal information and identification
Proof of income
Proof of assets and liabilities
Information about your car and insurance
We are required to ask for these documents to comply with anti-fraud legislation.
When assessing your application, we need to know the following things about you:
Your full name
Your date of birth
A list of dependants (children, elderly or sick relatives you care for etc.)
We require a driver’s license, which will be electronically verified or certified. In some cases, we may require additional forms of identification such as your passport and Medicare card.
Arguably the most important thing for a lender when assessing a loan is your ability to repay it.
As such, we ask for each of the following:
2 most recent payslips
Bank statements for the last 3 months showing your incoming and outgoing expenses
We may also ask for a list of your current living expenses, such as rent or mortgage repayments, and it never hurts to have at least three to six months of ‘genuine savings’ you can fall back on in hard times.
Another thing we might need to see is a list of your income-generating assets and liabilities, which can give us a broader view of your overall financial strength.
Depending on your employment and personal situation, we may also ask for some or all of the information below:
Information on any other loans you have, such as mortgage and personal loan documents
A summary of your share portfolio if you have one, or a portfolio of other investments such as bonds
A summary of your superannuation
We need to know the details of the car you wish to buy, so we know how much it will cost and how much you’ll need to repay.
When purchasing a car, you will generally need to supply the following:
A dealer invoice or contract of sale (contains address, contact numbers and ABN)
The vehicle chassis number
The year, make and model of the car
Information on the vehicle’s registration
Information on the car’s fuel efficiency (at loans.com.au, we offer discounts for cars that are more fuel-efficient than the average car in their category)
Importantly, it’s highly likely you will need to provide proof of comprehensive car insurance before receiving the stamp of approval. This is so you can repay the loan in full if the car is ever damaged so badly it needs to be written off.
Sending all of these documents can be a pain which is why loans.com.au created onTrack to make everything much easier. Using onTrack, you can upload, review, and approve documents, receive notifications and track the progress of your car loan’s progress 24/7.
Fast track your loan with onTrack
Tags: buying a new car | car loan approval
While applying for a car loan can be tricky, it’s still possible to get your first car loan approved with these six valuable tips.