Documents You Need to Buy A Car in Australia

Buying a car is an easy experience, right? All you need to do is find the car you want to buy, locate the seller, take the vehicle for a test drive, and pay? Well actually, there is a little bit more to it!

When it comes to buying a car, there are certain documents and paperwork that you will need to prepare and bring in order to buy.

Here are the essential documents you need to buy a car in Australia.

1. Proof of Identity

It may seem obvious, but you would be surprised how many Car Buyers fail to bring individual proof of identify documentation when buying a Car. For most people the proof of identity that you will need to bring to a dealership or a private seller when you are looking to buy is your drivers license.

A drivers license will prove that you are legally registered to drive on Australian roads and will also serve as your identification check when it comes time for vehicle registrations and eventual payment.

2. Proof of Income

If you are looking to gain finance to buy a car, providing your proof of income is an absolute must. When it comes to gaining finance, a lender will look at how much money you are bringing in per month against your monthly expenses. Based on this and a few other factors a lender will then deem if you are lendable or not.

Before you begin the buying process it is important to start to get together some of your latest income statements. Bring a bank statement or your monthly pay slip, this way you can get the finance process rolling.

3. Proof of Residence

When buying a Car, it is important to bring a Proof of Residence with you. Dealerships and lenders will require a proof of residence to ensure that you are who you say you are and more importantly, so they know where to send any associated bills and registration paperwork.

A proof of residence document can include your current water or council rates, home lease agreement or your mortgage agreement. The document just needs to tie you to a place of residence. Only one proof of residence document is required, you won’t be required to submit numerous documents.

4. Pre-approval Documents (If required)

If you are using finance to buy a car you should always bring your pre-approval documents with you. This way you can show the seller the amount that you have been pre-approved for and you can start the buying process.

Gaining pre-approval offers many advantages for car buyers including a faster purchasing, easier negotiation and keeps you centered as you can only look at vehicles that are within your price range and pre-approved amount.

5. Proof of Insurance

For most dealerships, you will need a proof of insurance to drive the vehicle off the lot. If you already have some sort of vehicle insurance, whether it be for your current car, be sure to show valid proof of your auto insurance to the dealer upon arrival.

You do need to keep in mind that insurance premiums differ based on the vehicles you drive. It is always recommended that you check with your insurer before you begin looking for another car as you may need to change policies for a new purchase.

6. Bank Account Information

If you are looking to trade in your vehicle and are still paying off a current car finance loan, you will need to bring your bank information and loan information with you to the dealership.

The reason why you will need to bring your loan and bank account information with you is you may have equity built up on the car that exceeds the current vehicles amount, which means you may be able to get money from the dealer if you choose to sell it to them. In this case the dealer will need a bank account to transfer funds to.

Additionally, the dealer or buyer will want to know that there is no finance remaining on the vehicle if, when and after they purchase the vehicle at the agreed amount.

Related Article: How to get the best trade in price for your car.

7. Vehicle Registration

On the topic of trade ins, if you are also looking to trade in your vehicle, you will need to bring the car’s current registration and title with you. The reason being is you need to show the seller that you are the current owner of the vehicle by law.

Final Word,

It is important that you prepare and bring all the right documents when buying a car. The 7 documents presented above are common when buying a car in Australia and should be prepared before you begin the buying process.

We hope you enjoyed reading this article. To read more articles like this, please visit the Shop for Cars latest news page here.

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DISCLAIMER: This is all based on opinion please research and consult with all relevant parties to make the best-selling decision.