Buying a car isn’t as simple as going to a dealership and plunking down cash—especially if you plan to finance your vehicle. In the great State of Texas, there are certain requirements and paperwork you’ll need to complete a transaction. If you’re preparing to buy a car, here is what you need to know when it comes to paperwork, the process and what to hold onto after the sale.
What Paperwork to Bring
When you buy a car, you have some things to prove to the dealership and whoever finances you. You’ll also need to have vehicle paperwork on hand in case you plan on trading your current car in.
- For the purchase you’ll want: Proof of income, proof of residence, and photo ID.
- For a trade-in bring: Current registration, the owner’s manual, and the title.
What Paperwork You’ll Sign
During a vehicle purchase you’ll fill out all types of information. Don’t ever feel rushed or like you can’t take your time to read through it. After all, it’s a major purchase and you need to see the legalities and fine print within the contract. Some paperwork you’ll most likely fill out or sign includes:
- Bill of Sale
- Trade-In statement
- Odometer disclosure
- Test drive agreement
- Privacy statement
- Dealer contract
- Financing application and forms
- Insurance application and forms
What Paperwork to Hold Onto After the Sale
After the sale is done, hold onto certain forms, and make sure some of them are in the car should you need to access them. In your car you’ll want proof of insurance and vehicle title and registration. It’s also best to take all the forms you filled out and got copies of from the dealership and place them in a safe place in your home to have on hand just in case.
Rare Paperwork
Every once in a while you’ll run into an odd situation. If you’re purchasing a car without a license or for another person, you’ll need additional documentation. This may mean letters, Power of Attorney documents and proof of identification of those driving or buying the car.
Optimizing The Car-Buying Process
Walking into a car-buying situation fully informed can speed it up, and allow you to make a safe purchase. There are some things you can do before you head to the dealership that will keep the process rolling. Here are 4 tips to consider:
- Tip #1: Know your whole financial picture – If you don’t like surprises, take some time to gather your financial situation and take a good hard look at it. This includes credit and credit score, a down payment amount, a monthly number of what you can afford and anything else that may affect interest rates and what you can buy.
- Tip #2: Set your budget – Take a good look at your finances before you go to the dealership. Remember to factor in all the costs of car ownership. This means both annual and monthly costs. You’re looking at car payments, insurance, gas, maintenance, license, registration and taxes. After you have the total number, decide what portion of that will go to the monthly car payment, which will give you a budget for cars you can afford.
- Tip #3: Research cars before you go – When you see a lot full of beautiful, shiny cars it can be easy to get caught up in the excitement. Before you go, look at the budget you just created and see what fits in your price range. Maybe target a few vehicles that would work for both your lifestyle and finances. Print out the values of those vehicles from KBB and Edmunds.com. If you’re purchasing a used car, ask for VIN history and a Carfax report on vehicles you like while you’re perusing the lot.
- Tip #4: Read your contract before signing on the dotted line – Once you’ve signed your name to an official document you are bound by law. Don’t ever hesitate to read through every line to make sure you know what you’re signing for. If you don’t understand something, ask. A good dealership is happy to let you have the time to read and is willing to answer any questions.
Buying a car is fun and exciting, but it takes a legwork too. It’s best to be prepared and know what you need to bring, sign and take away from the whole experience.
