Buying a car is a major life decision for many people. It's not just about the price tag, either—you'll need to do some independent research, find the vehicle that will meet your preferences and needs, and ensure that you bring all the necessary paperwork. If you're wondering, "What documents do you need to buy a car?" we can help you understand the process.

Required Documents for Buying a Car

The last thing you want is to drive all the way to a dealership only to realize you didn't bring the proper documentation to complete the purchase. Assembling everything beforehand will save you an extra trip (not to mention some embarrassment and frustration). It can also ensure that the transaction goes as smoothly as possible.

Proof of Identity

Every car dealership, credit union, and bank will require you to prove who you are before making any purchases. You must bring proof of identity to show a couple of things: 1) that you can legally drive the car, and 2) that you possess the money necessary for buying the car. Acceptable forms of identification include the following:

• Valid driver's license
• State-issued ID
• Passport

Proof of Auto Insurance

In some cases, you may need to provide proof of insurance before buying a car. However, this may depend on the dealership and the vehicle's lender. You won't always need proof of car insurance coverage, but you should always bring it with you to be safe.

Getting an insurance policy for a new car can be stressful if you're unfamiliar with the process. Once you decide which vehicle you want to buy, you'll need to send the following information to your insurance agent:

• Vehicle identification number (VIN)
• Odometer reading
• Make and model
  

Proof of Income

What documents do you need to buy a car? One required document is proof of income. You'll need to bring something to prove you are making money and can meet the purchase price.

Think of it this way: No one will want to lend you money or set up recurring payments if you can't prove you can handle your finances. Poor credit scores and lack of income are major red flags for sellers and lenders. This fundamental guide to financing a car can help you learn about this aspect of buying a vehicle.

Acceptable proof of income documentation includes:

• Bank statements
• Paystubs
  

Proof of Residence

Proof of residence is an important document that will help dealers and lenders determine whether you are eligible to buy a car. You'll need proof that you live at the address listed on your driver's license or state ID. Typical proof of residence includes any official documentation that shows your current address, such as:

• Recent utility bills
• Lease contracts
• Home mortgage agreements
• Credit card bills
• Insurance statements
  
  

If you don't have any documents listing your current address but have other pieces of mail addressed to you at that location, they might suffice as proof of residency. However, some dealerships may require more documentation than just a piece of mail. The more official the paperwork, the more acceptable it will likely be.

Trade-in Vehicle Title and Registration 

Are you planning to trade in your old car and purchase a new one? You must bring the trade-in vehicle's title to prove that you are the owner. If you have a co-signer or lien, make sure the title contains their signature. Another piece of documentation you'll need is a copy of your trade-in vehicle registration with the most current information.

Get Help With Purchasing a New Car

Buying a new car is exciting, but you'll want to answer the question, "What documents do you need to buy a car?" before diving in. At 1803 Capital, we can help you throughout the transaction process to ensure that it goes as efficiently as possible. Call us at 866-258-2950 to learn more and read our tips on gifting a car to a family member.