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Car finance ›
What documents do you need to finance a car?
Daniel Timblick, Senior Credit Risk Analyst, Tuesday, 21 March 2023
Updated: Tuesday, 10 September 2024
Updated: Tuesday, 10 September 2024
If you’ve never applied for car finance before, you’ll want to know what documents you need before starting the application process. Having your documents ready could help you avoid any unnecessary delays.
In this guide, we list the documents you need to apply for car finance and discuss other important factors you could consider.
What do you need to finance a car with Moneybarn?
When you get a quote, we’ll ask for some information about you. This includes your name, address, address history, employment, and some other details to check if you’re eligible.
If you’re approved, we’ll need proof of your identity to continue with your application. This will usually be a copy of your driving licence.
You may also need to provide proof of income so we can ensure the agreement is affordable for you. This might include 2 consecutive months of payslips, or other proof of income if you’re self-employed or have other sources of income.
Our friendly Direct Sales team will be happy to discuss your application and guide you through our application process.
Which documents and information do you need for car finance?
To get car finance, you’ll need to provide the following documents:
- Provisional or full driving licence
- Proof of income, e.g. recent payslips or bank statements
- Proof and history of address, e.g. recent utility or council tax bills
What paperwork do you need to buy a car on finance?
The information you need to provide will vary depending on the finance company you apply to. Each company has different lending criteria, so you may want to check before applying.
If you’ve never applied for car finance before, you’ll want to know what documents you need before starting the application process. Having your documents ready could help you avoid any unnecessary delays.
In this guide, we list the documents you need to apply for car finance and discuss other important factors you could consider.
What do you need to finance a car with Moneybarn?
When you get a quote, we’ll ask for some information about you. This includes your name, address, address history, employment, and some other details to check if you’re eligible.
If you’re approved, we’ll need proof of your identity to continue with your application. This will usually be a copy of your driving licence.
You may also need to provide proof of income so we can ensure the agreement is affordable for you. This might include 2 consecutive months of payslips, or other proof of income if you’re self-employed or have other sources of income.
Our friendly Direct Sales team will be happy to discuss your application and guide you through our application process.
Which documents and information do you need for car finance?
To get car finance, you’ll need to provide the following documents:
- Provisional or full driving licence
- Proof of income, e.g. recent payslips or bank statements
- Proof and history of address, e.g. recent utility or council tax bills
What paperwork do you need to buy a car on finance?
The information you need to provide will vary depending on the finance company you apply to. Each company has different lending criteria, so you may want to check before applying.
1
Proof of identity
To finance a car, you’ll need to provide proof of identity. This is usually a copy of both sides of your full UK driving licence. It might be possible to get car finance with a provisional licence. We accept a provisional licence with a valid pass certificate, but not all lenders do.
Finance companies may ask for a copy of both sides of your driving licence, so you should make sure it’s up to date before applying for car finance. To renew your driving licence, head to the DVLA website.
If you are having your licence renewed, some lenders may let you submit your passport with a DVLA or DVA mandate.
2
Proof of income
Lenders need to ensure that car finance is affordable before offering it to you.
As part of this, they will check your credit history and may ask for bank statements or payslips to verify your income.
If you receive benefits, depending on the lender and the benefits you receive, they might be counted as part of your income.
Learn more in our guide: ‘Can you get car finance on benefits?’.
3
Address history
Car finance companies usually ask for 3 years of address history as part of their risk checks.
If you’ve moved frequently or don’t have enough UK address history, lenders might see this as a risk.
When you get a quote with us, we ask for 3 years of UK address history.
You can read more about this in our guide to getting car finance as an expat.
1
Proof of identity
To finance a car, you’ll need to provide proof of identity. This is usually a copy of both sides of your full UK driving licence. It might be possible to get car finance with a provisional licence. We accept a provisional licence with a valid pass certificate, but not all lenders do.
Finance companies may ask for a copy of both sides of your driving licence, so you should make sure it’s up to date before applying for car finance. To renew your driving licence, head to the DVLA website.
If you are having your licence renewed, some lenders may let you submit your passport with a DVLA or DVA mandate.
2
Proof of income
Lenders need to ensure that car finance is affordable before offering it to you.
As part of this, they will check your credit history and may ask for bank statements or payslips to verify your income.
If you receive benefits, depending on the lender and the benefits you receive, they might be counted as part of your income.
Learn more in our guide: ‘Can you get car finance on benefits?’.
3
Address history
Car finance companies usually ask for 3 years of address history as part of their risk checks.
If you’ve moved frequently or don’t have enough UK address history, lenders might see this as a risk.
When you get a quote with us, we ask for 3 years of UK address history.
You can read more about this in our guide to getting car finance as an expat.
What to do if you're self-employed
You may need to provide additional documents to prove your income if you want to finance a car when self-employed. You can read more about our lending criteria to make sure you have the right documents ready.
What happens after you apply for car finance?
Once you’ve applied, the lender will indicate whether they can offer you finance. There are 3 potential outcomes:
- Rejected: We’ve written a guide to some steps you could take to help figure out why you’ve been refused car finance.
- Approved: If your application is approved, the lender will contact you to help with the next steps.
- Approved in principle: The lender may ask you for more information before they make a final decision. This could include documents to make sure you can afford the finance agreement or confirm the information in your application. Learn more about what ‘approved in principle’ means for car finance.
What else do I need to consider when applying for car finance?
As well as getting the right documents prepared, there are some other things to consider before applying for car finance.
What to do if you're self-employed
You may need to provide additional documents to prove your income if you want to finance a car when self-employed. You can read more about our lending criteria to make sure you have the right documents ready.
What happens after you apply for car finance?
Once you’ve applied, the lender will indicate whether they can offer you finance. There are 3 potential outcomes:
- Rejected: We’ve written a guide to some steps you could take to help figure out why you’ve been refused car finance.
- Approved: If your application is approved, the lender will contact you to help with the next steps.
- Approved in principle: The lender may ask you for more information before they make a final decision. This could include documents to make sure you can afford the finance agreement or confirm the information in your application. Learn more about what ‘approved in principle’ means for car finance.
What else do I need to consider when applying for car finance?
As well as getting the right documents prepared, there are some other things to consider before applying for car finance.
1
The type of loan
It’s important you understand the different types of car finance before signing an agreement. This will help you make the right choice for you and your financial situation.
To help you get to grips with them, read our guide on how car financing works.
Each type of car finance has its benefits. For example, if you don’t want to keep the car at the end of the agreement, a Personal Contract Purchase (PCP) or Personal Contract Hire (PCH) plan could be for you.
If you want to own the car at the end of the agreement, a Conditional Sale (CS) car finance deal might be suitable. However, you should be aware that you will be responsible for the car’s maintenance and other costs throughout the agreement.
It’s important you understand the different types of car finance before signing an agreement. This will help you make the right choice for you and your financial situation.
To help you get to grips with them, read our guide on how car financing works.
Each type of car finance has its benefits. For example, if you don’t want to keep the car at the end of the agreement, a Personal Contract Purchase (PCP) or Personal Contract Hire (PCH) plan could be for you.
If you want to own the car at the end of the agreement, a Conditional Sale (CS) car finance deal might be suitable. However, you should be aware that you will be responsible for the car’s maintenance and other costs throughout the agreement.
2
Your budget
2
Your budget
A lender will only offer you a finance agreement if you can afford it. All lenders must carry out an affordability check when you apply to make sure you will be able to keep up with your monthly payments.
If you’re looking to finance, you should factor in the other costs involved in owning a car, such as:
- Fuel
- Regular servicing and maintenance
- MOTs
- Road tax
- Car insurance
- Potential repairs and replacement parts
These costs can add up and impact your budget, so you need to consider them when deciding how much you can afford to spend on a car.
Once you know your budget, you could use a car finance calculator to see what your monthly payments could look like.
A lender will only offer you a finance agreement if you can afford it. All lenders must carry out an affordability check when you apply to make sure you will be able to keep up with your monthly payments.
If you’re looking to finance, you should factor in the other costs involved in owning a car, such as:
- Fuel
- Regular servicing and maintenance
- MOTs
- Road tax
- Car insurance
- Potential repairs and replacement parts
These costs can add up and impact your budget, so you need to consider them when deciding how much you can afford to spend on a car.
Once you know your budget, you could use a car finance calculator to see what your monthly payments could look like.
3
Your credit file
3
Your credit file
As part of the car finance application process, lenders will check your credit file to see if you are eligible for finance.
Your credit file includes your personal details, like your address, how much credit you have, and if you have missed payments in the past.
You could use a money management app such as Snoop. Snoop is one of our sister companies that helps users track their spending, manage their finances, and view their credit score.
Or, to learn more about credit scores, take a look at the guides below:
Car finance with Moneybarn
As part of the car finance application process, lenders will check your credit file to see if you are eligible for finance.
Your credit file includes your personal details, like your address, how much credit you have, and if you have missed payments in the past.
You could use a money management app such as Snoop. Snoop is one of our sister companies that helps users track their spending, manage their finances, and view their credit score.
Or, to learn more about credit scores, take a look at the guides below:
Car finance with Moneybarn
At Moneybarn, we have over 30 years of experience helping people onto a better road ahead.
We’re bad credit car finance specialists. So, if you’ve been refused car finance, are self-employed and looking for car finance, or receive benefits, we could help.
We offer Conditional Sale (CS) car finance. Under these agreements, you make fixed monthly repayments over an agreed term. When you pay the last instalment, the vehicle becomes yours.
How our car finance works
There are no balloon payments or ‘option to purchase’ fees; you automatically become the car’s legal owner.
Get a quote in less than 5 minutes to see what your agreement could look like.
At Moneybarn, we have over 30 years of experience helping people onto a better road ahead.
We’re bad credit car finance specialists. So, if you’ve been refused car finance, are self-employed and looking for car finance, or receive benefits, we could help.
We offer Conditional Sale (CS) car finance. Under these agreements, you make fixed monthly repayments over an agreed term. When you pay the last instalment, the vehicle becomes yours.
There are no balloon payments or ‘option to purchase’ fees; you automatically become the car’s legal owner.
Get a quote in less than 5 minutes to see what your agreement could look like.
How our car finance works
FAQs about documents you need for car finance
Do I need payslips to apply for car finance?
When you apply for car finance, most lenders expect you to provide 2 to 3 months of payslips or bank statements to prove your income.
If you’re self-employed, you may not need to provide payslips, but you may need to prove your income using other methods. This might include other documents like tax returns or CIS vouchers, or by connecting your bank account using Open Banking.
How many payslips do I need for car finance?
Most lenders ask for 2 to 3 months of bank statements or payslips when you apply for car finance. This is to prove that you can afford your monthly payments. At Moneybarn, we ask for 2 consecutive months of payslips.
In some circumstances, the lender might ask for additional proof of income. This might be as part of their affordability checks or if you are looking for self-employed car finance. If so, the lender can guide you through that process.
Do I need a full driving licence to get car finance?
No, you can get car finance with a provisional driving licence. However, you will need a full driving licence to drive the car on your own.
If you want to apply for car finance while holding a provisional licence, you may need to provide additional documents. Read our guide to learn more about applying for car finance with a provisional licence.
FAQs about documents you need for car finance
Do I need payslips to apply for car finance?
When you apply for car finance, most lenders expect you to provide 2 to 3 months of payslips or bank statements to prove your income.
If you’re self-employed, you may not need to provide payslips, but you may need to prove your income using other methods. This might include other documents like tax returns or CIS vouchers, or by connecting your bank account using Open Banking.
How many payslips do I need for car finance?
Most lenders ask for 2 to 3 months of bank statements or payslips when you apply for car finance. This is to prove that you can afford your monthly payments. At Moneybarn, we ask for 2 consecutive months of payslips.
In some circumstances, the lender might ask for additional proof of income. This might be as part of their affordability checks or if you are looking for self-employed car finance. If so, the lender can guide you through that process.
Do I need a full driving licence to get car finance?
No, you can get car finance with a provisional driving licence. However, you will need a full driving licence to drive the car on your own.
If you want to apply for car finance while holding a provisional licence, you may need to provide additional documents. Read our guide to learn more about applying for car finance with a provisional licence.
For a better road ahead
Moneybarn is a member of the Finance and Leasing Association, the official trade organisation of the motor finance industry. The FLA promotes best practice in the motor finance industry for lending and leasing to consumers and businesses.
Moneybarn is the trading style of Moneybarn No. 1 Limited, a company registered in England and Wales with company number 04496573, and Moneybarn Limited, a company registered in England and Wales with company number 02766324. The registered address for these companies is: Athena House, Bedford Road, Petersfield, Hampshire, GU32 3LJ.
Moneybarn’s VAT registration number is 180 5559 52.
Moneybarn Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702781)
Moneybarn No. 1 Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702780)
