Never Go To a Car Dealership Without These 3 Financial Statements

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Whether you plan to buy or lease a car, your dealership will be interested in whether your financial situation is ideal for taking on a lease contract or vehicle loan. While part of this involves pulling your credit report and score, the dealership will also need you to show that you receive enough reliable income to consistently make your monthly payment. Here are three important types of financial documents to bring with you.

Also see how to save money on a car loan.

Pay Stubs

If you’re working for a traditional employer, prepare to show the dealership at least the last few pay stubs detailing your current pay. You’ll need these for each employer if you’re working multiple jobs. While you can usually download and print pay stubs from your company’s employee portal, you could also ask your employer.

Keep in mind that the dealership may require an employment offer letter as well if your job is new or you only have one pay stub. As a newer employee, consider calling the dealership beforehand about its requirements so you have time to request the letter.

Tax Documents

You might have a unique employment situation or specific income sources that require tax documents for verification. For example, the dealership may accept W-2 forms for regular employment income instead of pay stubs. If you’re self-employed, 1099 forms and your last two tax returns with your business income can prove your earnings. Plus, your Social Security statement and other retirement tax documents come in handy for reporting retirement income to the dealership.

Bank Statements

While not always required, your recent bank statements can help the dealership both verify your current residency and income. You might use them to show newer or less common income sources that aren’t reported on pay stubs or your last tax documents. Bank statements can also detail the cash reserves you have for a vehicle down payment or security deposit. You can download them from your online banking site if you don’t receive mailed statements.

Other Important Documents To Bring

Although these three financial statements help show whether you can afford the car lease or loan, your dealership will likely need several more documents. Some basics include proof of your car insurance coverage and your photo ID. If you can’t bring bank statements, you should also have a utility bill or some other proof of residency available. 

If you’ve already shopped around for car loans, bring any preapproval letter so you can compare the terms to what your dealership offers. You’ll need a payment method for any down payment or security deposit you’ll make. Plus, the dealership might ask you to bring a references list if your credit is a concern.

Finally, you’ll likely need documents such as the title, registration, recent loan statement and service records for any vehicle trade-in.

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