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Required documents for auto loan

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jwcdjc

Junior Member
Me and my wife just went to purchase a used car the other day and when we got down to doing the paperwork they asked us both for a Vaild Utah Drivers License. My license is suspended until Feb 06 but my wife's is valid. We both work and have all of the other necessary resources to purchase a car however we were told that we both have to have valid Utah Drivers License's in order to qualify for the loan. I have never heard of this requirement before is this a law that the banks are required to follow? Or is this just a preference for this paticular lendor or dealership?
 


dallas702

Senior Member
Highly unlikely unless you didn't have any other I.D.

Find someone who really wants your business.

What interest rate were you supposed to pay (APR)?
 

seniorjudge

Senior Member
jwcdjc said:
Me and my wife just went to purchase a used car the other day and when we got down to doing the paperwork they asked us both for a Vaild Utah Drivers License. My license is suspended until Feb 06 but my wife's is valid. We both work and have all of the other necessary resources to purchase a car however we were told that we both have to have valid Utah Drivers License's in order to qualify for the loan. I have never heard of this requirement before is this a law that the banks are required to follow? Or is this just a preference for this paticular lendor or dealership?
Get the car and credit just in your wife's name; the car dealership is afraid you won't pay because (to them) having a suspended OPL shows you are a bad credit risk.
 

jwcdjc

Junior Member
dallas702 said:
Highly unlikely unless you didn't have any other I.D.

Find someone who really wants your business.

What interest rate were you supposed to pay (APR)?

They did not get that far in the paperwork so we had not yet been told the interest rate and we both did have I.D. Mine was a state issued Identification card and my wifes a Utah Drivers License.
 

jwcdjc

Junior Member
seniorjudge said:
Get the car and credit just in your wife's name; the car dealership is afraid you won't pay because (to them) having a suspended OPL shows you are a bad credit risk.
After they declined because of the Drivers License issue we left then I called them back and asked them that same question why not just run it in my wifes name and they said they would try. Then the next day they said that the bank wanted me on the loan so that we would not be able to finance it at this time until I get my Drivers License back. I have a Utah State Issued Identification card and we both work full time. So from your response this is not a required law it is just a preference of the lender correct? and possibly If we were to go to another dealership this may not happen. Thanks for you response.
 
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dallas702

Senior Member
You could try joining a credit union or talking to a few other bank's loan officers to see what their requirements are. One of you not having a dl shouldn't make you are credit risk, but I can tell you that the credit "qualification" game is one of the biggest scams going. Anything less than perfect raises your APR considerably, and almost anything can be used as an excuse. It is important that yoou clean your record and keep it clean so yoou don't get gouged. Try to work directly with a lender before you shop for a car if you can. Most banks will treat you like you are trying to rob them, or you aren't worthy of their time, but they do have to make loans to stay in business.

Check average used car rates for your area online or in the newspaper. I never finance anything...much less a car...so I'm only guessing that there's still 5-6% money for used cars, but certainly don't pay more than 8-9%. If they start talking 15%, remind them that this isn't the '80s and you're not stupid.

Don't sign anything unless you understand every line on the contract. As you can guess, car salesmen and their contracts can be quite....ummmm..."less than completely honest..."
 
car loan problems

This is a common problem. Utah appears to be similar to California in terms of vehicle loans, requiring all persons on the contract to have valid drivers' licenses. One BIG reason would involve insurance issues (ie, an unlicensed driver cannot obtain valid insurance), thus putting the collateral at risk. Don't be angry with the dealer: I guarantee that they wanted to sell you the car. The loan must pass muster with the loan company, which will require proof that the people on the contract are licensed and insured. The loan company also wants sufficient income from those on the contract. The only exceptions would be a person whose infirmity precludes obtaining a license who can purchase a vehicle for other LICENSED drivers/caretakers to drive them around.

You MIGHT be able to get this done if you can sign a statement for the loan company stating that the unlicensed person on the contract WILL NOT be driving the vehicle. Again INSURANCE is likely the issue. Credirworthiness is not based on whether you have a license.Check with the dealership, or your bank. The interest rate will be tied mainly to 1) your credit history 2) the age and miles on the car 3) the length of the loan 4) your employment history and income and other factors (price, down payment). States like California have, or will have, caps on rates above the "buy" rate (usually 3% above the buy rate)

My suggestion, other than waiting until both licenses are valid, would be to try for a less expensive vehicle, one where the licensed drivers income would qualify. I did sales and financing for ten years; if you have more questions...BTW,
don't ask Dallas-I've read some of his posts and he is strongly opinionated, but substantially lacking in useful info.
 
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