If you're ready to buy a car, being prepared can cut your time at our dealership in half. Showing up with the right paperwork saves headaches and helps you drive off in your new ride sooner. Our team at Huffines Hyundai in Plano walks you through what to bring when buying a car.
Valid Driver's License: Proof of Identity
Your driver's license is the first step. We can't let you take a test drive without one, and we copy it for our records to satisfy federal anti-fraud rules. Be sure it hasn't expired, because that will delay things.
If you don't have a driver's license, a passport might work for identification, but you still need a license to legally drive your new car. Almost every state requires auto insurance too, something many shoppers forget until they're at our dealership.
If you've moved recently, check to see if your old license works here. States give varying grace periods for switching over. When in doubt, call ahead.
Proof of Auto Insurance: Why It's Necessary
Be sure to bring your insurance card. We can't hand over the keys without seeing proof you're insured. If your card isn't handy, bring the declarations page from your policy.
If you're a first-time buyer, contact your insurance company before you start car shopping. Tell them you're about to buy, and they'll set up coverage that kicks in the minute you drive off the lot. If you already have coverage, most policies have a grace period to add a new vehicle to your existing coverage. Call your agent beforehand to check, as some companies have different rules.
Payment Methods: Options and Considerations
Our dealership accepts several forms of payment, but each comes with different considerations. Financing is the most common way to purchase a car. Cash works, although federal laws can limit how much physical cash we can accept. Checks are fine, but we may call your bank to verify larger amounts. If you plan to use a debit card, contact your bank first, as you may need to secure an override on daily limits.
Credit cards get tricky. We may cap card payments because of the processing fees they incur, and while you might earn significant rewards, the interest could add up quickly if you don't pay the balance off. It's best to call ahead and ask us about your preferred payment methods and whether they would be subject to any additional fees.
Proof of Income and Employment: Strengthening Your Financial Profile
If you plan to finance your new vehicle, bring proof of your ability to pay. Recent pay stubs work best, but W-2s, bank statements, or tax returns can be used, especially if you're self-employed. Lenders want to see that you can handle monthly payments and have a stable income, especially for first-time buyers with a sparse credit history.
Even if your lender says that they don't need physical copies, bring them anyway. Missing paperwork can scuttle a deal quickly. Hide sensitive information such as Social Security numbers, and include documents from recent employers if you've switched jobs recently.
Freelancers need two years of tax returns plus bank statements showing steady income. Commission workers should document average earnings, not just peak months. Our Plano dealership has seen it all, but more proof means fewer delays.
Recent Utility Bill or Lease Agreement: Proof of Residency
You'll also need to prove where you live. Recent utility bills are best, but leases, mortgage statements, bank statements, or government mail with your address work, too. Most places require documents from the last 30-60 days. Older paperwork might get rejected, forcing you to make a return trip.
Federal law requires your lender to verify your address. If you're new to the area, bring multiple documents showing your new location, and verify that the address matches across all the paperwork. If you're living with someone else, get a letter from the homeowner confirming your residency, plus their proof of residence.
If you live in one of Plano's new developments, you might face challenges with outdated address databases. Always bring physical papers rather than digital phone copies. Call ahead if you're a college student or in the military, as your living situation often requires special documentation.
Preparing for Financing: Documentation and Steps
Check your credit score beforehand. Get free reports from the major bureaus, and fix errors before you start shopping. New car loans currently average 6.35% interest, and used car loans are around 11.62%. Your credit status makes a difference — excellent scores (781-850) might secure 4.77% on new cars, while poor scores (300-500) support rates around 15.75%.
Get pre-approved before visiting our dealership. This gives you leverage and sets a realistic budget. If you have poor credit, consider a cosigner or a larger down payment.
The cost of a new vehicle averages $48,724, with a typical loan amount of $41,572. Monthly payments average $742, and over 80% of buyers borrow. Loan terms run about 68 months for new cars and 67 for used. To avoid headaches, visit our financing center before shopping.
Trading In a Vehicle: What You Need
If you're trading in your current vehicle, bring your vehicle registration as proof of ownership, and the title if you own it outright. Bring your loan information to show the payoff amount if you're still making payments. Remember to bring all your keys, as missing ones can reduce your trade value. Bring your maintenance records to show you've taken care of your ride.
Research trade values before you come in, and clean your car inside and out. Be ready to discuss trade-in value separately from your new car's price. About 45% of new car sales involve trade-ins, but nearly a quarter (23.9%) of those trades were underwater, with owners owing more than the car was worth. These situations averaged $6,255 in negative equity. Knowing these numbers helps set realistic expectations about what your old car might bring as part of a trade.
Your Essential Car Buying Checklist: Be Prepared and Drive Away Happy
Let's recap what you need to bring:
- Valid driver's license
- Proof of insurance
- Proof of income and employment
- Proof of residency
- Financing documentation
- Trade-in documentation (if applicable)
Gather everything before you go to save time later and enhance your negotiating skills. A typical purchase takes 3-4 hours at our dealership, but good preparation can reduce that time significantly. Most Plano residents find that morning appointments run more smoothly than late afternoon visits.
Create a folder with all these documents the day before to prevent frantic searching through glove compartments or downloading bank statements in our waiting area. Your organization signals to our team that you're serious and prepared, often resulting in a more straightforward negotiation process.
Find Your Next Car at Huffines Hyundai Plano Today
Ready to put this checklist to work? Head over to our Plano dealership, where we make the whole process straightforward and honest. We appreciate well-prepared customers and often reward that preparation with a smoother, faster experience.
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