What Do You Need to Finance a Car?
If you’re planning to buy a vehicle for the first time, you may wonder, what do you need to finance a car? While there is some paperwork you need to bring, applying for financing is a straightforward process. Check on these materials before you visit us at PA Auto Credit for a quick, easy application.
Credit Score
If you don’t know your credit score before heading out to finance a car, check it online. You can use services like Equifax® or Experian® to check your credit—and, if you haven’t used your annual free credit report yet, it should be free. If your score isn’t very high, you may want to consider adding a co-signer, but our team works with buyers with any type of credit.
Down Payment
While a down payment is sometimes optional, you always should put something down when buying a car, whether it’s a trade-in or cash. New cars begin to depreciate in value the moment you drive them off the lot, so a down payment still gives you an essential head start on your loan. Ideally, you want to aim for a down payment that’s 20 percent of the sticker price, but even if you can’t hit that number, we’ll still work with you to secure a loan.
Documents
When you apply for financing, you’ll need to prove things like your identity and your insurance coverage. Bring a driver’s license (or other state ID), proof of insurance, and evidence of your income with you when you apply. Pay stubs are the easiest way to prove your income, but you can also bring bank statements, W-2s, or 1099s.