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What documents do I need for car finance?

Applying for car finance is a simple, straightforward process. However, if this is your first time making an Application and you're looking for some guidance then you've come to the right place.

To help you understand the car finance application process, we've put together a checklist of all the documents you need to hand when submitting your car finance application, as well as some of the main considerations to think about.


1. Driving license/proof of identity

To apply for car finance, you will firstly need to be able to prove your identity. The easiest way to do this is with a driving licence as this is the primary way that car finance providers will accept as proof.

In some circumstances, you can also use a passport as proof of identity, but this will depend on the lender our finance partners match you up with.

If you need to update your driving licence ID card the best place to visit is the DVLA website which has all the information and links you'll need to get your licence up to date.

  • EU Licence may be subject to further identity proof, however this will depending on the lender you are matched with.

2. Proof of income

You may need to provide the finance provider with 3 months' payslips or bank statements, as this will prove to the lender you can afford your Monthly Payments.

If you're self-employed, lenders will accept bank statements, providing they show sufficient evidence of regular income.

If you receive benefits, this can usually be counted as part of your income, providing you can prove that half of your income is from employment.

3. Address history

Traceability is an important aspect of your application, therefore when you apply for car finance, you will need to provide your address history for the past three years.

If you're unable to do so, for example if you have only recently moved to the UK, finance providers will sometimes carry out overseas checks to verify your previous residence, however this will vary from lender to lender.

What else should I consider?

So, that's all the documents and proofs you'll need to make a car finance application. However, there are a few important factors to consider before you make your application.

Don't worry - you won't need to make a decision on these things straight-away. And at Novo Auto you'll be assigned to your own friendly sales member who will discuss these aspects with you in more detail.

Your budget


Before you sign up to a car finance agreement, you should take the time to calculate how much you can afford to spend on your monthly repayments.

To do this effectively, you should make a list of all your monthly outgoings - utility bills, food shopping, recreational expenses etc.

Although some of these costs will vary each month, try and calculate your average monthly expenditure. You can then look at your left-over funds and decide how much you're prepared to spend on your car finance.

Then once you've worked out your monthly budget, you can use our Car Finance Calculator to calculate the total amount you can borrow.

Type of loan

There's a wide range of Car Finance Options available, so it's important to compare your options carefully and select the best package to suit your circumstances. This way you can decide which works best for you.

For example, if you want to own the car at the end of your agreement, then a Hire Purchase may be the best choice. However, if you'd rather have the option to return the car to the lender and upgrade it for a new model then a PCP Agreement may be more suitable.

Hire Purchase (HP)

Want to make monthly payments over a term that suits you and keep the car?

  • Pay a fixed amount for a fixed number of months
  • No need to estimate mileage
  • At the end of the agreement, you'll own the car

Personal Contract Purchase (PCP)

Want a tailored and flexible finance plan with three final payment options?

  • Pay an agreed amount across a pre-agreed term
  • Set mileage limits so you don't incur extra costs
  • At the end of the term, you can buy the car, return it or use it as part exchange

Your credit rating


When applying for car finance - or any credit loan for that matter, understanding your Credit Score is key as it can affect your eligibility for a loan.

At Novo Auto and its finance partners, we're delighted to offer finance solutions across all credit ratings. However, if you have an excellent credit rating, you'll generally receive better rates than someone with a poor or bad rating, simply because a stronger Credit Profile means you're considered less of a risk in the eyes of the lender.

Novo Auto with our partners Evolution funding are offering FREE credit search check, The soft check is not visible to other lenders and won't affect your credit score. Please apply for a FREE SOFT CHECK HERE

Choosing your vehicle

Finally, the exciting part.

Once you've got the financial aspects of your agreement in place you can decide on the car, and there's plenty to consider. Should you go for a classy estate or a trendy SUV? How reliable is it? Is it economical? What colour? Our up to date stock list is available here.

If you need some help finding the right vehicle, please call our team on 01793 683645 or email us at

Apply Today

If you'd like to discuss your car finance requirements with a member of our team simply apply online today. Alternatively, if you want to find out how much you can borrow, then calculate your budget using our easy to use car finance calculator below.