Car Credit Documentation
Like any application process, a car finance deal needs appropriate documentation. Our mantra at Kandoo Car Credit is simple; we make things easy. So here – we’ll discuss the kinds of documents you need in your journey toward car ownership.
What documents do I need?
There are a number of documents that you’ll be expected to have available when you begin your car finance journey.
Proof of Address
Any lender needs to know that you’re a UK resident. Examples of Proof of Address include utility or council tax bills, statements from your bank or building society. Typically, you’ll need to show up to three years of address history. This can be difficult for new drivers if they’ve never been on council tax or household bills – for this reason a photocard license can be accepted however sometimes you can’t then use it as your Proof of Identity.
Your Proof of Address documents need to show that you’ve been resident at an address within the last three months, and some lenders require address history covering the last three years.
Proof of Identity
This isn’t just for the lenders – as a car finance broker, we too need to know you’re who you say you are. If you’ve not used photo ID for your Proof of Address you can use your drivers’ license, otherwise, a valid passport is the best option. Even a birth certificate would be fine.
Documents that aren’t from an authoritative source such as the government or the Driver and Vehicle Licensing Agency (DVLA) are not accepted – so student ID cards or bus passes are not valid. National insurance numbers are also not valid, as they are not private and can be abused by fraudsters.
Proof of Income
As a lender is taking on risk by allowing you to borrow money, they (and we) need to know that you’re able to make the repayments. To provide proof of income – most lenders will ask to see payslips covering the last six months, alternatively some may accept a current contract of employment or bank statements showing your income/outgoings.
Employment Details
Some lenders will ask for details about your employment – this can tell the lender whether you’re a good fit for their finance deals. Your current contract of employment should suffice here, and sometimes a lender may ask for your employer’s contact details too.
Bank Details
In order for you to make repayments to your lender, you’ll need to provide your banking details. Some lenders allow you to pay with a debit card, others you to set up a direct debit. To set up a direct debit, you’ll need to provide your account number and sort code.
Lenders generally won’t accept a payment from a credit card. Some lenders also allow you to make a bank transfer (BACS).
Driving Documentation
Your final piece of critical documentation is your driving documentation – the proof that you’re allowed to drive. Most people use their driving license. This is checked against the DVLA database. Paper counterpart licenses are not valid and have not been since 2015.
Do I Need a Full Driver’s License?
As our founder Sam explains, car finance isn’t just for those that have passed their driving test. You can still enter into a car finance agreement with a provisional license; in fact some of our lenders offer products specifically for provisional license holders.
