You’ve done your research, checked your credit report to make sure it’s accurate, and you’re ready to get serious about buying a pickup truck. You feel more than ready to secure financing a pickup truck, sign on the dotted line and drive home in your new ride.
Sounds pretty good, right?
Sadly, there’s a chance you could drive home in your old vehicle, kicking yourself for having forgotten one of the documents you need to finalize the purchase. Here’s how to be prepared for getting the deal done on the day you’re ready to buy.
8 things to bring with you when financing a pickup truck
1. Valid driver’s license.
Customer identification is required by federal law. The types of documentation required will vary from lender to lender. In most circumstances, you’ll be required to present a government-issued I.D. showing your photograph and residence. For most, this will be a driver’s license or passport.
2. Proof of insurance.
When the dealership asks you to sign a bill of sale on your new pickup truck, you’ll also be asked to provide proof of insurance. The insurance you have must comply with state law and meet any additional requirements of the lender before you’ll be able to drive the vehicle off the lot.
If you have an existing auto insurance policy, your new car purchase may even be covered by your existing policy for a certain grace period, so be sure to check.
3. Trade-in documents
- Certificate of Title
- Loan statement and payoff info
- Lender contact info (usually found on your loan statement)
- Service records
- Extra keys
- Any added accessories that came with your trade-in
4. Proof of income.
Your two most recent paycheck stubs. If you have more than one job, bring the stubs from those as well.
If you’re self-employed, it gets a bit trickier. Each deal is different but you’d be safe bringing at least your most recent tax return and three most recent bank statements.
5. Proof of residence.
Federal law requires lenders (and dealerships who work with them) to gather information on your residence, as well as proof of that residence. If your driver’s license is current, that may be sufficient for most dealers. You may also use your mortgage statement to verify your home address or any piece of personalized mail you have received within the last month. This may include:
- Utility bill
- Credit card statement
- Bank statement
- Property tax bill
- Medicaid or Medicare benefit statement
- Auto insurance policy
- Homeowners or renters insurance policy
You may not use a P.O Box. The only exception is for Army Post Office boxes (APO) or Fleet Post Office (FPO).
6. List of references.
What do lenders mean by a reference? Thankfully it’s a lot simpler than it might seem. As far as they’re concerned, a reference is simply someone who knows you. This means that the person can be a relative, friend, co-worker, your pastor or even your boss. As long as they’re not living in your household, they can be a reference.
Under most circumstances, six references will be sufficient. Some lenders ask for only four, but since a few may require more than this it’s always a good idea to have at least six names you can use.
7. Down payment.
Dealership forms of down payment:
- Personal check
- Cashier’s check
- Credit card
- Debit card
- Trade-in equity
Your trade-in vehicle can serve as a down payment. If you still owe on that loan, the amount of “equity” you have can serve as your down payment. “Equity” is the difference between your trade-in’s loan payoff amount and the actual cash value of your vehicle.
8. Pre-Approval from the dealership.
The Internet is full of free advice about getting pre-approved bank or credit union loan. But no one tells you about the “insider’s secret” to financing a pickup truck: get pre-approved at the dealership!
As car loan interest rates rise, the need becomes greater for consumers to work a little harder when shopping for the best deals. Dealerships are the best place to get a loan for your pickup truck.
- Dealerships have close relationships with ALL types of lenders.
- Dealerships have flexible lenders who are open to people who have lower credit scores.
- It’s super convenient since you’re already at the dealership.
At Dye Autos, we’ve sold thousands of pickup trucks and we’ve helped a lot of people who thought they’d never be able to afford a vehicle.