Buying a new car can be both exciting and stressful. However, you can mitigate some of the stress by being prepared and having the necessary items with you when you go to the dealership.
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Here are some of the documents you should have on hand to speed up the car buying process:
- Your driver’s license. While you should always have your license with you, it’s especially important to have it with you when you buy a new car. The dealership will ask you to see a copy of your driving license before they can take you for a test drive. Without it, you probably won’t be able to drive the vehicle.
- Car insurance proof. Almost all states require drivers to have car insurance. When you visit the dealership, you will need to show your valid proof of insurance to purchase the car. Your current proof of insurance listing your current vehicle is usually sufficient. However, you may want to contact your insurance agent ahead of time to find out what you need to do to add your new vehicle to your policy.
- Your preferred payment method. You can help speed up the process of buying a new vehicle by having your check, cash or loan ready before you walk into the dealership. However, if you are financing your car through the dealership, you should set aside some time to fill out the necessary paperwork. You should also have your down payment ready. Contact the dealership to see if they require additional documents for the financing process and to see if they offer pre-approved financing.
- Information on discounts/discounts. Many dealerships and car manufacturers offer discounts and special discounts for certain people, such as military, students and recent graduates. If you want to benefit from a bonus, you will need to provide documentation proving your eligibility.
Keep in mind that if you’re going out of state to buy a car, the requirements may differ from those in your state of residence.
For example, some states will require your new car to pass a smog test, emissions test, or safety inspection before you can drive it home. Contact that state’s DMV or go to their website to determine these requirements before you travel.
Tips to simplify the car buying process
In addition to having the necessary documents, there are a few other steps you can take to simplify the car buying process:
- Get a car insurance quote. Before you go to the dealership, it’s helpful to get an auto insurance quote for the vehicle you’re interested in. Factor the cost of insuring the car into your total budget so it’s not a surprise after you’ve made the purchase. You’ll also want to ask your agent if there’s a grace period for adding your new car to your policy. If not, you will need to add the vehicle to your current policy before you can leave the lot.
- Get pre-approved for a loan. If you plan to finance the vehicle, contact your bank or credit union and get pre-approved for a loan. When you apply for pre-approval, you’ll know what amount and interest rate you qualify for. It will also help you stick to your budget. If you want to finance your purchase through the dealer, it still helps to get pre-approved by your bank. This way, you can use the pre-approval letter as leverage with the dealer to get better loan terms.
- Make sure your documents are up to date. Before going to the dealership, check that your driver’s license and proof of insurance are valid and up to date. If your license is expired, or if your car insurance policy is not active, you probably won’t be able to buy the vehicle and drive off the lot the same day.
- Verify your payment method. It’s a good idea to confirm that the dealer accepts your preferred form of payment, especially if you’re not making the down payment in cash. Call the dealership ahead of time to verify which payment methods are acceptable to avoid problems.
What to bring if you’re trading in your car
If you’re trading in your current vehicle, you’ll need to have additional documentation on hand to speed up the process:
- title Your car title is required to prove to the dealer that you are the owner of the vehicle you are trading in. If you can’t find your title, you can request a duplicate copy from your state’s DMV. Please note that you will have to pay a fee for the duplicate.
- Vehicle registration. Don’t forget to take a copy of your registration to the dealership when you trade in your vehicle. The dealer will usually accept an expired registration. However, if the registration is not current, the dealer can remove the registration renewal cost from the car’s trade-in value.
- Service records. Although the dealer will obtain the history of your trade-in vehicle, it is helpful to provide service and maintenance records that may not be included in the report. You can also provide a Carfax report if you have one available, showing the car’s accident history, mileage, previous owners and any service history.
- Account number for your trade-in loan. If you still owe money on your change, you’ll need to bring the loan account number. You can find this number on one of your pay stubs. You may also want to contact your lender to see if they have a specific process for handling changes.
Before changing your vehicle, you should also make sure that the car is clean. The car doesn’t have to be spotless, but you want to make sure you haven’t left any of your personal items in the car.
Go through the vehicle from top to bottom and make sure all your items have been removed. It’s also a good idea to clean up food wrappers, receipts, and other trash so the dealer doesn’t have to.
Finance and insurance editor
Elizabeth Rivelli is a freelance writer with over three years of experience in personal finance and insurance. He has extensive knowledge of various lines of insurance, including auto insurance and property insurance. His name has appeared in dozens of online financial publications, including The Balance, Investopedia, Reviews.com, Forbes and Bankrate.
