Financing the payment seems to be the biggest task when it comes to buying a used car, especially because the interest rates for a used car are slightly higher than a new one and the buyers tend to get confused with all the varying kind of choices available in the market. But once the financing has been done, especially the bad credit car finance option being taken care of, the users usually heave a sigh of relief.
However, there is still the task of the mammoth amount of paperwork that is needed to be filled before you can be called the rightful owners of the car. And this is important because even a small negligence on the part of the buyer can lead to losses due to faulty paperwork. So, this last bit of financing should be taken care of so that all the effort put into getting the perfect package for your car does not go into vain.
Here are some of the documents that you should be able to produce and those that you should check with the dealer to complete the on-paper requirements of your financing arrangement:-
1) DRIVER’S LICENCE:-
This is absolutely necessary, not just because you may need it even while you take test drives on the options that you have set aside for yourself, but also because it doubles up as a very important identity proof that is needed in case of all the financial package agreements, including the bad credit car finance option package deals.
2) INCOME PROOF:-
To ensure that you secure the lowest rates of interest, you need to have a valid proof of income to show for. This will be the guarantee on your behalf to ensure that you have the ability to pay the monthly instalments that the decided package entails.
3) BANK STATEMENTS:-
This is an account of the previous transactions and credits that have been taken in your name. It will be an important way to decide on your credit rating which is a very crucial factor in determining the rate of interest for the financing option. The bad credit car finance option package deals available normally have a higher rate of interest than those which are against an account with no credit damages involved.
4) VEHICLE REGISTRATION NUMBER:-
Check this document very carefully and make sure that the registration plate bears the same number as the one written. Also, take care of the name of the last seller and tally it against the dealer’s records.
5) CAR SERVICE BOOK:-
Carefully go through this service book to make sure that the miles covered by the car and all the other mentioned conditions add up to what the dealer promised before the purchase.
6) ACCOUNT DETAILS:-
Once the monthly instalments and the rate of interest have been cleared completely, the dealer, banks or credit unions need to be provided with the account details so that there is no problem in the smooth debit of your monthly payments. In case of the bad credit car finance option, ensure that the financing is done in your name in order to make a little improvement to the credit score.
7) INSURANCE PROOF:-
Every vehicle should have a valid proof of insurance before it is taken on-road. Therefore, while buying a used car, you can either ask for the transferable insurance of the vehicle concerned to get it registered in your name or a better alternative will be to build up a new insurance scheme for your vehicle according to your own terms and conditions.
Thus, proper paperwork is extremely important for the final sealing of the deal, It should be ensured that the terms of the agreement are properly read before any signatures are made to get the full benefit of the finance package deal, including the bad credit car finance option packages.