Documents Needed When Buying a New Car

Posted by Daria King on December 12th, 2019

Purchasing a brand new vehicle can be a hassle. Unless you're buying a car with cash in Florida, you'll be faced with a ton of paperwork. Don't worry, though, because this article has already summarized the documents commonly requested by banks and auto dealers.

Loan Pre-Approval Form

The first step in acquiring a new vehicle is getting a pre-approved loan from a bank. An agent will give you a form you need to fill out. This questionnaire usually asks personal information, like the nature of your current work and how much you earn annually. They may also request you to list down a few people they can reach out to in case they can't contact you.

Rest assured that all the vital info that you'll give them will be treated with the utmost confidentiality. Speak with your bank agent to learn more about your rights as a client.

Proof of Identity and Residence

As a measure of the state to prevent financial scams and money laundering, you're required to prove your identity when making a large purchase. This isn't much of a hassle since providing 2 government-issued IDs to your bank and dealer will typically suffice. Your driver's license and passport should be fine.

Federal law also requires you to give a proof of residence to let your lender and dealer know where you live. The address on the document you'll provide should match with the one written on your government-issued IDs.

Certificate of Employment

Your lender and dealer should be assured that you can pay the vehicle you want to purchase. For this, you need to provide them a certificate of employment. They may contact the company you're working for to verify the information.

If you're self-employed, prepare a proof of your income. Furnishing your lender and dealer a copy of your recent tax return documents or bank account statements is usually enough.

Documents for Your Old Vehicle

If you'd like to save big-time, there's an option for you to sell your old vehicle to your dealer. Prepare official papers that prove you're the owner of the car you want to trade-in. The documents that you need include the purchase receipt and registration certificate of your current automobile.

Not all companies offer this option. Find auto dealers that say "we buy cars in Florida" if you want to trade in your old vehicle.