Whether you’re considering a new or used vehicle, as a business or individual, we’ve compiled a handy vehicle finance approval checklist to the most common types of documentation and what you need to do with it to fast-track your application and get approval quickly:
Complete application and loan forms
It sounds simple, however by filling out every required section of your application and loan documents with the most up-to-date and accurate information saves you tiresome emails and phone calls that extend the approval process.
It’s at this stage of the process, besides getting a competitive deal on your vehicle finance, that having a broker really pays off. As your continued support throughout the application process and life of your loan they act as your liaison with your chosen lender and an aggregate for all your documentation, taking the stress of the application process off your shoulders.
When completing your application you will need to provide 100 points of identification including one photo ID, like a drivers licence. This is a system devised by the Australian government that rates Australian or state-issued identification documents on a points scale. Documents such as birth certificates and passports carry the most value at 70 points, while credit cards and Medicare cards carry the least at 25 points. These documents will most likely need to be verified. You can find a summary of who can do this for you here.
Proof of income
If you are an employee you will be asked to provide at least 3 months of bank statements and/or payslips. If you are self-employed you will be asked to provide your last individual and business tax return, a profit and loss statement and balance sheet. Rental income is also taken into account and for this you should provide a signed lease agreement, bank statements confirming rental credits for the last 3 months and a tax return with rental income included.
Details about the vehicle
It’s preferable to have as much detail as possible about the vehicle you are looking to purchase. Information could include whether the car will be new or used and what the VIN, registration number, make and model are.
If you are looking for a business vehicle, you will also need:
An active ABN
A profit and loss statement (P&L)
Your assets & liabilities
The lender will want to know about any existing assets or debts that you have. Assets include things like savings accounts, stocks, investment properties, cars etc. Your liabilities are the financial obligations that you have. They may be credit cards, existing loans, regular bills etc. It is worth keeping in mind that lenders will take into account you credit card limit, rather than your current balance. It may be the time to consider reducing your limit or cancelling your card in order to maximise the amount you can borrow for your vehicle finance.
Although each lender will vary slightly in their documentation requirements, preparing as much of your documentation as you can before you apply means you can minimise your approval time and know you are answering questions on your financial situation correctly.
If you’re looking for a vehicle loan for personal or business use, FundingPro can help you compare a range of competing lenders, their rates and deals with one application. Apply now.