What procedures are required for car loan application?
2 Answers
Procedures required for car loan application are as follows: 1. Vehicle Purchase Contract: The vehicle purchase contract is a formal sales agreement signed between the buyer and the dealer, serving as a basis to protect the rights and interests of both parties. 2. Other Procedures: (1) Industrial and Commercial Verification: Official vehicle purchase invoice and the manufacturer-provided vehicle quality certificate. (2) Applying for a Vehicle Movement Permit: Vehicles without license plates cannot be driven on the road. After verification, the buyer must also apply for a vehicle movement permit from the traffic police department. (3) Applying for a Vehicle License: Prepare two photos of the new vehicle; temporary driving license; registration card; road maintenance fee receipt. (4) Paying Vehicle and Vessel Usage Tax: File records at the surcharge collection office and have the surcharge certificate stamped with a record mark, then go to the local tax bureau (or its on-site collection office at the time of purchase) to pay the vehicle and vessel usage tax and receive the tax plate.
I was really excited when I got my first car loan, but the process turned out to be much more complicated than I expected. You'll need to prepare basic documents like copies of both sides of your ID card, bank statements for the last six months to prove your income, and income verification or tax returns from your employer. Proof of address is also required, such as utility bills or a copy of your lease agreement. They'll check your credit report too—if your credit score is below 600, your application might get rejected, so paying off small loans or credit card debts a few months in advance can really help. Additionally, in most cases, you'll need to provide a car purchase intent letter or a draft contract, which the bank will use to calculate the loan amount. Before applying, it's wise to estimate your down payment—putting down 20% or more can ease your monthly payment burden, and opting for a fixed interest rate makes things simpler. The approval process usually takes one or two days, so just be patient and make sure you don’t miss any documents. Key factors affecting approval include income stability and credit history—young applicants often get rejected due to lack of experience, which is why I emphasize thorough preparation beforehand to avoid wasting time on repeated submissions and corrections.
