What Documents Do You Need To Buy A Car?

Pay Stubs, Proof of Income & Dealership Stips

When you apply for financing at a dealership, you’ll be asked for a few key documents—often called stips (short for stipulations). Knowing what documents you need to buy a car ahead of time saves hours and improves approval odds. Below is a streamlined guide to the exact auto financing documents lenders look for: identity, proof of residence, and proof of income (usually pay stubs).

Why Lenders Ask for Stips

Customer preparing auto financing documents and pay stubs

Banks verify three things: who you are (ID/driver’s license), where you live (proof of address), and how you earn (income verification). Clear dealership stipulations keep approvals quick and clean—no extra busywork.

Proof of Identity

Your driver’s license anchors the entire file. Bring a clear, unexpired ID; a temporary license is fine if valid.

  • Valid driver’s license (unexpired, current legal name).
  • Name change? Bring the marriage certificate or court order that matches your current name.
  • SSN/ITIN (only if requested): A pay stub or W-2 showing your SSN/ITIN is typically sufficient.

Proof of Residence (Address)

Your address confirms stability and where the car will be registered/insured. Use recent mail in your name (last 30–60 days).

  • Utility bill, bank/credit card statement, or lease/mortgage statement.
  • Under 12 months at current address? List your prior address on the application.
  • Living with family/roommates: Bring mail in your name at that address (bank/credit statement works well).

Renting vs. Owning

  • Renters: Lease agreement or a recent bill in your name.
  • Homeowners: Mortgage statement or property tax bill; a utility bill helps tie the address to you.
Finance manager reviewing pay stubs and proof of income

Proof of Income (Pay Stubs & Alternatives)

The most common question: How many pay stubs do I need for a car? Usually, your latest pay stub with Year-to-Date (YTD) totals is enough. Early in a new year, if your current stub doesn’t show YTD yet, bring your final pay stub from the previous year plus your most recent one.

W-2 Employees

  • Latest pay stub with YTD totals.
  • New calendar year? Add last year’s final pay stub as well as most recent stubs from the current year.

Self-Employed & 1099

Do you need pay stubs to buy a car if you’re self-employed? No—use 1099s and/or 2–3 months of bank statements showing consistent deposits as proof of income.

  • Recent 1099s (if applicable).
  • 2–3 months of bank statements showing deposits that reflect your work.

Fixed Income (Retirement, Disability)

  • Award/benefit letter showing amount/frequency.
  • Bank statement showing the deposit.

Down Payment Documentation

For typical down payments, a quick balance confirmation is enough.

  • Bank balance proof (statement or app screenshot with your name visible).
  • Cashier’s check / money order receipt if using one.
  • Gift from family? A short note (gift, not a loan) keeps underwriting smooth.

Insurance Proof

If you’re financing, you’ll need full coverage insurance (comprehensive & collision) with the lender listed as lienholder.

  • Current insurance card (if already insured).
  • Binder/confirmation adding the new vehicle and lienholder; your agent can send it directly.

Trade-In Paperwork

  • Title (if paid off) or payoff info (lender, account number, recent 10-day payoff).
  • Registration & insurance card (speeds up verification and taxes/fees).
  • All keys/fobs & manuals (can improve trade value and saves a return trip).
  • Lien release letter if the title still shows a paid-off lien.

Co-Signer & References (If Requested)

Co-signers bring the same documents needed for a car loan: ID, address proof, and proof of income (pay stubs, 1099s, or benefits). Some lenders ask for 5–6 personal references (name, city/state, phone, relationship).

FAQ: Stips, Pay Stubs & Car Loan Requirements

Q: How many pay stubs do I need for a car?
A: Usually one recent pay stub with YTD totals. Early in a new year, also bring the final pay stub from last year.

Q: Do you need pay stubs to buy a car?
A: If you’re a W-2 employee, yes—pay stubs are the simplest proof of income. Self-employed? Use 1099s and bank statements instead.

Q: What documents do I need to finance a car?
A: Driver’s license, proof of residence, proof of income (pay stub or 1099s), insurance card, and down payment documentation.

Q: Do I need proof of income to buy a car?
A: Yes. Lenders must confirm income to approve financing.

Quick Stips Checklist

  • Driver’s license (current, unexpired).
  • Proof of address (bill, lease, or mortgage within 30–60 days).
  • Income verification:
    • Latest pay stub with YTD; new year → add last year’s final pay stub.
    • 1099s + 2–3 months of bank statements for self-employed.
    • Award/benefit letter + bank statement for fixed income.
  • Down payment (bank balance proof, cashier’s check receipt, or debit card—raise limits first).
  • Insurance (card + agent contact to add vehicle/lienholder).
  • Trade-in (title/payoff, registration, keys/fobs, lien release if applicable).

Bottom Line: Bring the Right Stips, Get Approved Faster

For most buyers, the essentials are simple: driver’s license, proof of residence, and your latest pay stub with YTD totals (plus last year’s final stub if it’s early in the new year). Add insurance details, down-payment documentation, and any trade-in paperwork, and you’re set. That’s how you satisfy the car loan requirements without extra paperwork—and drive out sooner.