What details do you need to apply for car finance?
When applying for car finance, you’ll need to provide some personal information to demonstrate to the lender that you’re a reliable borrower. Here’s a basic list of what you may need to supply:
- Your full name
- Your date of birth
- Proof of address
- PPS Number
- Proof of income
- Bank details
- Driving license
What paperwork do you need to prepare for car finance?
Each lender has their own specific requirements, but in general the paperwork they will need to see is:
- A picture of your driving licence – After you apply online, you’ll be asked to upload a picture of your licence, front and back. Ensure that the image is clear, and all details are legible before submitting it.
- Payslips – Lenders will need to know your employment status and your average monthly income. This information helps them conduct affordability checks to ensure you’re not applying for a loan that could strain your finances.
- Bank statements – Lenders will assess the running balance in your bank statements to ensure you can afford the repayments of the new loan.
- Proof of address – A lender will usually ask for a copy of a bill, dated within the last 3 months, as proof of where you live.
Do you need payslips for car finance?
Yes, providing recent payslips may be required for car finance. Payslips verify your income, especially when your income is not mandated to your bank account, and help lenders determine if you can afford the monthly repayments. They also provide proof of your PPS number. Make sure the payslips you provide are up-to-date and accurately reflect your current earnings.
Do I need a full licence to get car finance?
No. At Vendor Finance, we work with some lenders who will accept an in-date provisional licence, as well as lenders who don’t require a driving licence at all.
Can I get car finance if I don’t have a bank account?
Unfortunately, in most cases, it’s not possible to get car finance without a bank account if you want the finance to be in your name. This is also the case at Vendor Finance, as none of our lenders can provide finance to individuals without a bank account.
How much do I need to earn to get car finance?
Lenders assess your debt-to-income ratio, which is the portion of your income allocated to repaying debts. A stable and sufficient income is typically required to demonstrate your ability to repay the loan. In addition, lenders may consider factors such as your credit score, job stability, and existing debts when determining your eligibility for car finance. This is why they request proof of employment and recent payslips.
Is it hard to get accepted for car finance?
Approval for car finance depends on various factors, including your credit history, income, and the lender’s specific criteria. While some lenders have strict requirements, others specialise in providing car finance to individuals who may have been declined by other lenders.